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Credit Cards Guide

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An Introduction To Credit Cards

 

These days, the majority of people in the UK will keep at least one credit card in their purse or wallet as an increasing number of us have become accustomed to using credit cards as part of our everyday life.

Whether it's to spread the cost of an expensive purchase or unexpected expense over several months to help our cash flow, or to earn reward points or cashback, as a nation, we are using credit cards more than ever – in fact the latest figures from APACS reveal that there are more than 67 million credit cards in the UK with a combined annual spend in excess of £350 billion. 

A credit card is a simple way of obtaining a credit rating and, used wisely, can help provide flexibility in helping you manage your money effectively. However, if used irresponsibly they can also be an easy way to get into serious debt.
 
Many people are lured into applying for certain credit cards with the promise of low introductory interest rates, but depending on your personal circumstances and financial situation, there may be more important factors to consider.

It's also vital that you check the finer details buried in the terms and conditions of your credit card agreement, as the attractive 0% interest rate may only last for the first six months, and then jumps to 20% or more thereafter. A store card usually carries an even higher rate of interest, so beware even though you may be offered 10% -15% off your first purchase if you sign up for a store card, if you don’t repay your statement balance in full, you’ll be charged interest at a rate of almost 30% APR – ouch!

As a financial data comparison site, Moneynet.co.uk can direct you to the best plastic deals to meet your needs and spending profile. We make it easy to shop around to find the best cards, but you need to ensure that a deal really suits you.

The first step is to determine what kind of credit card user you are.

 

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Last Updated: 19-06-2013