Entries Tagged 'Credit Cards' ↓

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Charity cards are really not all that charitable to the users and though they appeal to the users to show that they are doing something for their charity, they usually end up making profits for the bank. Paying off the card in full is the only way that you can benefit the charity the card endorses. Any left over balance is usually charged at the full rate of interest and that puts credit card holders in a trap. Of course, very few cards would actually mention this in their advertisements!

Did you know that the bank gave about 0.25% of your spending to the charity? Furthermore, you cannot claim any tax relief for using a charity card and it is the bank which benefits from it by claiming it as tax relief for themselves! Some cards do give a higher percentage to charities depending on the level of spending but you can still give directly to the charities and it is likely to cost you less in the long run.

It is difficult to sign up for many charity cards (so that they get the initial amount) as it is likely to affect your credit score and this is a short term method to give. However, if you are keen to give a percentage of your spending to charities then what you need to do is use a cash back card and use the cash that you get back to give to charities. This is a pretty simple system and gives you the opportunity to give more (since percentage of cash back are higher) and claim tax benefits. High usage of cash back cards lets you give more to the charity.

A higher value card like the Amex Platinum can increase your charity figure by 500%. Do keep in mind that you would need to keep paying your cash back card in full each month in order to stay out of the interest trap. You can even automate your payments by linking the card to your bank account and all you would need to do is send a separate cheque to the charity at the end of the month as soon as you see your card statement. Not only is this method smarter in actual financial terms, it also helps you donate directly. So are you still going to hang on to your charity branded card and let the banks reap the benefit of your good deeds?

Festive occasions bring a gust of fresh air and are a welcome relief from the general monotony. Exchange of gifts is integrally related to festivity. A lively pageantry is imperfect without the cheerful children with a gift in their hands. You can surely be the proud possessor of those smiles with any one of the Top 5 Credit Cards in hand.

These Credit Cards have a sharp distinction from the ordinary debit cards. This is because of the fact that, after every transaction, it does not take away money from the account of the user. If you take a credit card then the issuer shall provide you money as well as the credit card.

A credit card has a vast difference with a Charge Card. Another interesting name for this credit card is the Describe Credit Card. In this case, you shall need to pay the entire balance before the commencement of a month.

If you opt for a Credit Card, then you shall not have to bother for payment. Since, in case of the Credit Card, you will be allowed to resolve your balance and also the cost of having the interest charged. The ISO 7810 has specified the size and shape of Credit Cards which is not subject to change.

The Top 5 Credit Cards include the following:

Platinum cards- These types of credit cards are not meant for common people. If you are rich, you shall automatically be invited to own a Platinum Card. They are essentially meant for people with exorbitant income as well as expenditure. Once you have this credit card in hand, it is mandatory that you use it on and often.

Gold cards- You have to apply for Gold Card in order to possess it. in most of the cases, you shall be given a Standard Credit Card and the only difference is that, you shall be required to pay a higher annual membership fee.

The Low Interest Credit Cards offers a meager 5% interest rate in the first six months. After these six months are over, you shall be charged an interest rate of 10%. You can actually save a lot of money over the interest rate and therefore, standard credit cards with low interest rate shall be of enormous help to you.

Credit Cards with Rewards Programs- the word reward points out to the rebates, incentives, or even cash back rewards for the purchases that you make on your credit cards. You can actually get a huge amount of discount once you have this card with you.

Cash Back Credit Cards-You shall be getting cash rewards if you use the Cash Back Credit Cards while making your festive purchases. Mostly, there is a cash back rate of about 1%, although it may vary with different types of Cash Back Credit Cards. This obviously, excludes the interest and finance charges. Some cards have a higher percentage of cash back while the other does not have that facility. So, if you are in a habit of paying back your monthly bills in time, then you can surely opt for these credit cards.

Barclays card brings in a real sweetener for card owners with its offer of transferring balance at a mere 6.9% and no additional charges for it. The Barclays card is not all that easy to get since it needs a good credit history. Without that you run the risk of being rejected as well. the best part is that this special service is also on offer from other banks but they are not heavily advertised. In most cases, this service is available only to new customers.

Further details include a 0% interest balance transfer which can extend up to 12 months! This is an excellent opportunity for credit card tarts and there is no doubt that many of them exploit it to their advantage. The 6.9% rate might not be the best around but if you are planning for long term debt and don’t care much for tarting….then the Barclays card is a good bet. The 0% interest rate transfer is also permitted to existing customers under specific conditions which are quite easy to adhere to.

However, like most credit card schemes, this one is also not without its entrapment and this one is not a small one. Though the low rates of interest exist…they are mostly for the transferred amount and not for any new spending on the card. The traditional rate of interest which hovers around 17% continues to be charged and it is easy to fall into the trap quite easily. Move your eyes away and you will see the interest building up rapidly and the banks are aware of this fact and that is why they offer balance transfers in the first place.

The antidote to this problem is simple enough for individuals to implement and the only assumption is that you have another card to tide you over emergencies etc. transfer the balance at the low rate of interest and keep paying the installments till you are debt free once again. Patience and a good eye for detail (as well as a good organizing ability) can help you reduce the amount you pay in interest. In fact many individuals confirm that smart debt management via credit card results in very low rates of interest which you need to shell out and savings can amount to as much as 80% of the inflated interest costs charged by credit card companies. So go ahead and give it a shot…you never know…getting the better of banks might be the best thing you do!

We all fall prey to loyalty card schemes and many of them might not be very upfront about their benefits. Evaluating schemes requires you to compare what each point gets you at the end. For example, one of the best schemes available is the Boots Advantage loyalty program which effectively offers customers a 4% discount on products purchased. However, other cards might not offer such transparent valuation and thus loyalty card points are never better than real cash.

Pricing of standard goods at high street shops might actually be a tad higher than that of the chain store and thus in effect the savings are really not there. Loyalty points accrued in credit cards are not advantageous until and unless you pay them off in full. In fact, cash back cards are much better than loyalty cards. Many cards may offer points in multiple programs encouraging you to spend in their store…however, this is not always beneficial to the user and you might end up buying things which you might not even need.

Tesco’s Clubcard can be used to maximize points by getting vouchers, using these vouchers on the Clubcard Deals Brochure and also by using Clubcard Plus services where you can earn double points. Stay out of overdraft and you would have made the most out of your Clubcard. There are frequent offers which are also worth looking at but just don’t buy something because the offer is good!
The Nectar card is good is some locations such as Sainsbury, TalkTalk, BP and Debenhams. The Amex Nectar sign-up results in a minimum of 1000 free points and there are a range of services you can use these points on. We have already mentioned the Boots Advantage Card and you can use it for just about anything. The ATM offers a wide range of discount coupons to cash on to and many products offer triple points as well.

The AirMiles does not directly relate to miles collected by flying an airline but gives high value points at Avis, Homebase and Leslie Davis. Going directly to AirMiles results in more points and the name comes from the fact that the points are collected from travel related services. As the internet becomes common-place for transaction services, you can get more AirMiles as well as other just by using the services and booking features online. Being loyal to one company is not necessarily bad and if you stick around with a good card like the Boots or the Tesco one, you can be assured about the points you will accumulate.

Debt can never be good. Furthermore, saving and having debt at the same time is like a dual edged sword and one which must be avoided at all costs. It is principally true that debt will always cost more than what you will make with your savings and thus it makes sense to pay off your debt with your saving and get out of the typical trap that banks and other financial institutions promote it indirectly and lend the same money back that you saved, making a buck for themselves!

Some of the exceptions to this rule are in situations when there is a penalty to pay back the loan in advance. Other exceptions include when you have an almost interest free loan…in this case it makes sense to stick to this debt.  Though it might sound surprising, there are a number of options to get to this stage….and the 0% interest credit cards are the most common option.

Keeping an emergency fund is important but not at the cost of debt. An emergency may or may not arise… and when it does you can fall back on your debt-free status and take on debt to service this emergency. Debt free credit cards come in very handy in such situations and then it is a debt which can be serviced over a period of time. Hanging on to savings for an emergency which might never arise is not a financially wise decision. This logic is based on the assumption that you will be able to get credit cards to take on your emergency requirements.

The cost of debt should be evaluated and the ones which are most costly should be paid off first so that you can actually save interest. Once that is done, you can start looking at your lower interest rate debts and see if they are beneficial to maintain. Financial discipline of managing the interest rate earned and spent result in good debt/savings management. So don’t focus on the principle but take a look at the yearly cost of the debt as compared to the interest you earn on your savings.

Knowing your personal habits of spending also help in paying off debts…if you feel paying off credit card debt will result in more spending in the next couple of months then you should just go ahead and get rid of them. After all, this is the best traditional advice which can be given when it comes to debt management!

There is no harm in taking on debt provided you manage it well. Reading between the lines can help you decide which credit card to use and which to switch from. Here are some tips on how you can do this effectively by keeping an eye open at all times for some excellent deals:
1) How to become a Tart? Well, the name sounds a bit strange but it refers to avoiding paying any interest to credit card companies by switching to their 0% interest free offer period. Avoid this if you are not being able to actively manage it and try and keep updated with all documents with the credit card company.

2) Stable relationship cards can also be used…these are just good cards which might not be the cheapest but do not require your time and effort in monitoring them.

3) Keep checking out the new card launches and offers to be able to spot those which suit your need the best. Make a note of all the terms and conditions and the permissions per card to ensure that you are familiar with which transactions are best done in which card.

4) Don’t withdraw cash on credit card until and unless you know the exact APR (and almost all cards have a fairly high APR for cash withdrawal).

5) The credit card rates are not fixed and they are changed time to time. Look out for some good opportunities during rate changes. Downward revisions of rate changes can result in a positive impact on your credit card balance and being alert really pays off!

6) However, Tarting is not possible without a good credit score especially since you need a range of cards to use. thus the first step should be to ensure a healthy credit rating so that you can benefits from their schemes. Standard practice of checking your online credit history along with good applications should set you up on the road of getting the most out of your plastic!
If you think trying to switch or take advantage is too much hassle, you might change your mind once you know how much you end up saving in the process. General homeowners claim to save a few thousand dollars each year and also contribute better money management skills to their tarting experience. This should be enough to make you get active and become a Credit Card Tart!

Finding the right credit card is a myth. There is no one card which can service all your requirements to the trick is to choose from a host of providers to cater to your specific requirements. Here are some tips which can help you get the better of card companies and reap financial benefit in the long run:
1) Benefit from your debt free status by drawing 0% interest cash and pushing them into your savings account.

2) Use Store Cards in the store only and pay it back on time. Otherwise you are going to be stuck with 25% interest amount which they charge. Never ever borrow on a store card!

3) Never use the really expensive cards during your trip abroad. Choose from a card which has a very nominal rate and you can see up to 6% saving in one single trip.

4) Get to know Section 75 or the Consumer Rights protection clause which is applicable with credit cards.

5) Credit cards also offer other forms of protection such as Payment protection, Travel Accident Insurance and ID Fraud protection. Make yourself familiar with them and ensure that your card offers at least a couple of these clauses. In fact, many cards also offer online shopping protection and it is a much needed clause nowadays.

Some of the types of cards which you can opt for are the Balance Transfer card for transferring the balance of the other cards to this one which is likely to have a lower rate of interest. Rewards cards or Cashback cards are an interesting option as well as they provide benefits of using them by way of cash backs. This category of cards is most suitable for those people who always pay their credit card on time.

Purchases Card usually has a low rate of interest and is highly recommended for those who are active credit card users. There are many offers which are available in Purchases Card so you should choose one which is advertised with special rates. Usually a couple of credit cards is good enough to take care of most of your short term finance requirements and as suggested above, you can also exploit them to get the most out of the money you spend. Credit cards are good for those who meet the payments on time and can turn vicious for those who are very irregular on their repayments.

Apply for Amazon Credit Card »

After its phenomenal success with books, Amazon is trying its hands at personal finance. It first venture in the credit card market is launched with the Amazon UK credit card. With competitive interest rates and exciting rewards and loyal scheme, the Amazon Credit card is all set to take the center stage.

Amazon Credit Card Features
For balance transfers 0% interest is charged for the first 9 months. In the first 6 months 0% interest is levied on purchases. The APR is 15.94%, typical (variable).

The Amazon credit cards offer incredible credit point rewards for purchases. For every pound spent in an Amazon site, the Amazon credit card offers one credit points. For every pound spent elsewhere Amazon Credit card offers half credit points. And here comes the best part. For every 1500 credit points secured, you will receive £15 gift from Amazon.co.uk. It is very use to these gift vouchers. Using your shopping basket select the items you wish to order. This will be followed by an order form which will have a box saying ‘Have you got a gift certificate or promotional code?’ Enter your code, a 14 digit number, and click the button ‘Apply’. Any unused balance will be saved in the customer gift certificate account. If purchases exceed the gift certificate amount then the balance has to be paid by credit card. Gift certificates or unused gift balance expire within 1 year from the date of issue. The ease with which online customers can use this card is perhaps its greatest feature. However these gift vouchers can be used only in Amazon.co.uk and no other Amazon sites.

The other features include:

• An introductory offer of 0% interest on purchases for 6 months
• A Master card.
• 59 days of interest free purchasing period, as long as payments are made in full balance within due date.
• Online Access
• Online security facilities.
• No annual fee.

Teamed with Halifax plc, Amazon credit cards have implemented excellent online facilities. For instance, if you have a Halifax online account then you can use the account login id and password to access your credit card account. The online security features are remarkable.

Apply for Barclaycard »

Low interest rates

The relatively low APR has made Barclaycard an attractive option for transfer of balance. It offers 0% interest on purchases for the first 3 months and balance transfers for 12 months from opening the account, without having to pay any annual fee. The standard APR for purchases is 14.9% against 27.9% for cash advances.

Features

However the advantages that come with this card are far more. Easy on-line account management, protection against fraud through “chip and pin” technology, great holiday deals and savings on shopping are among the many facilities that come with it. No longer one needs to worry while traveling abroad as the Barclay credit card makes emergency cash advance while traveling. Domino’s Pizza, Emirates and Marriot are among the few companies, which have tied up with Barclay to provide products and services at attractive prices. This is why today every fifth card in the UK is a Barclay card.

Security

The question of security keeps every cardholder worried but not with Barclay. It keeps the identity of the customers concealed and also protects against damages of products ordered on-line or on the mobile. It provides emergency cash and cover to the customers in case the card gets lost.

Card design

The Barclay cards, which come in different shades of Blue, are quite unique in their design. The Platinum card has drops of blue over a silver background thus giving it a corporate feel.

Company Profile

Barclay card has been making positive contribution to the community by contributing to local charities. It also runs the Horizons program to support the lone parents. Their long history of serving the community and customers alike since 1966 makes them one of the most globally respected and trusted brands.

Eligibility Criteria:
To apply for the Barclay Platinum card the candidate must be 21 or above and a resident of United Kingdom.

Apply for egg credit card »

With the introduction of on-line registration these days it takes only a few minutes to apply for a credit card. It no longer involves the hassles of paper work. However one of the key concerns of customers about on-line transactions has been security of information and identity. The 128-bit Secure Socket Layer encryption engine used by Egg maximizes security of information. Today Egg is the largest pure on-line bank in the world.

Features

Apart from 24 hour secured online servicing it has come with a range of attractive facilities for egg credit card holders. It charges 0% interest for purchases within first three months and balance transfers for 12 months from the day of opening the account. For the customers who would apply by May 2007 the company has announced a 0% interest rate on balance transfers from May 2009 to May 2010. The APR is 16.9% for purchases and 22.9% for cash advances.

Benefits

The Egg cardholders enjoy a number of benefits ranging from free travel accident insurance to protection against purchases damaged in transit.

Cover against loss of card/death

More than 13000 cards go missing everyday in UK and Ireland. Egg covers up to five people living at the same premises for the loss the cards for only a fee of £29. Egg also covers for inability to pay back outstanding balance due to death or serious illness.

Cash back rates

It offers exciting cash back facilities of up to 20% on a range of items like DVD, garments and lifestyle goods. It has tie-ups with companies e.g. travelcheap.com that provides cardholders with concessions on travel bookings. One also need not pay any interest on premiums of motor insurance for up to 12 months.

Service to community & Business ethics

Egg has come up with strategies to identify and groom talent in areas of education, sports and liberal arts. The intention to leave a lasting impact on the community also influences its business strategies to maximize customer satisfaction and sustain a positive brand image.