|
Credit cards are one of the best methods of
borrowing over a short period, but only if you have the resources and
the ability to pay off the balance. In the UK buying on credit is open
to anyone over the age of 18.
Increasingly credit card issuers are offering interest free
introductory periods, and you have the flexibility of being able to
pay back part or all of the debt at any time.
Annual fees are becoming increasingly a thing of the past since the
arrival of credit card providers from the United States.
Most cards provide an upper spending limit. Quite often this is around
£1,000, but card issuers will increase it if you prove to be a
reliable customer.
The cards available can be divided into four main groups, each of
which will appeal to different consumers:
Standard
Visa and MasterCard are two of the common cards available.
Platinum and Gold Cards
These types of card are usually only available for people with higher
levels of income. Most card issuers offer a number of different types
of gold and platinum cards, many requiring a minimum income of £20,000
a year. Quite often these types of card have benefits attached to them
such as access to airport lounges, guaranteed tables at fully booked
restaurants and exclusive access to certain stores outside of normal
shopping opening hours.
Credit Rebuilding Cards
Some credit card issuers are prepared to offer cards to people who may
have been turned down in the past or who have suffered credit problems
such as mortgage arrears, defaults, CCJs, bankruptcy etc. Such
cards include the Capital One Classic.
Affinity Cards
These operate in the same way as standard credit cards but a small
percentage of what you spend is donated to the charity or the
organisation to which the card is connected. Often these cards
usually charge some of the highest rates in the market.
|
Home