If you are in the process of selecting a new credit card, or you are about to apply for your first one, you should make sure you check out the many different credit card deals that are being offered. A quick Internet search on a site like Zibb.co.uk demonstrate there are many options regarding deals from just about every building society and bank in the UK. These are provided with the intention of enticing you to choose their credit card above others.
Because the current poor economic situation has left many families and individuals with low incomes and ever-increasing debts, a large percentage of the population are struggling to repay credit card debts. This results in only the minimum repayment being made every month, which hardly makes a dent in the overall amount owed. Because of this, many consumers are transferring the debt to a new card that offers several months of credit interest-free. You will find most banks have some sort of similar scheme, which typically involves a transfer fee of around 3 percent, and then zero percent interest for a year or even longer. This type of deal allows people to have a chance of getting back on their feet and lowering the amount owed on the card. Before signing up with a new credit card company, make sure you are well-read with all the types of deals on offer, so you opt for the best deal for your individual needs.
Credit Card Reward Schemes
Credit card reward schemes are generally based around a points system, and when you have accumulated enough points you can exchange them for gifts, household appliances, gadgets, travel discounts and possibly cash back. These type of reward schemes are in place, so you are more likely to pay for purchases with your credit card rather than with cash. When you are researching individual credit card reward schemes, make sure you calculate how much each point is worth. You will find that some companies have fantastic rewards, but you will need to accumulate many points before you have a chance of receiving one. Another company may not offer such good rewards but if you work out the value of how many points you need, you might be surprised to see the rewards are easily attainable.
Zero Charge Credit Cards
You might have heard of zero charge credit cards, and wonder if this is just a marketing ploy or if they actually exist. There are very few companies that offer zero charge for the life of a credit card, and although some may be advertised as zero charge cards, if you look at the small print you will see this is for a limited time. A zero-charge credit card is one that does not charge you any annual fees for using the cards – these are also known as “no-annual fee cards”. Before signing up with a card that is offering this promotion, do ask the provider how long the annual charge will not be made.
Cash back Credit Cards
Cash back credit card schemes are those that offer you varying amounts of money back on your purchases. This will usually be up to a specific limit, or only on a certain type of purchase. For example, you may be offered 5 percent cash back on car fuel, or 3 percent cash back on supermarket purchases. Another card may offer a percentage on all purchases, but only up to a limit of £2000, for example. You should be aware that cash back credit card schemes are only of benefit to those who pay off the balance every month, because otherwise the accumulated interest that you must pay will probably be more than the money you get back. For this reason, it is important that you do not overspend on cash back credit cards with the thought that it will reap larger rewards.