Choosing credit cards isn’t something
people should do lightly. These products can have a major impact on consumers’
financial health, so it’s really important to make the right decisions.
For this to happen, you need plenty of
information on credit cards. Luckily, there is a wealth of advice available online for you to take advantage of. By
reading up on these cards, you can help ensure you benefit from the best
possible deals and this can save you lots of cash in the long term.
Before applying for the cards, you should
think carefully about how they will use them. For example, do you intend to
clear their balances in full each month or not? Importantly, the most
competitive credit card deals tend only to be available to consumers with
excellent credit histories.
If you won’t be able to pay the balances
off in full at the end of each month, you may benefit from opting for zero per
cent purchase cards. However, it’s important to bear in mind that these
interest-free periods do not last forever and you should attempt to clear your
balances before any charges kick in.
Another option is the zero per cent balance
transfer card. This type of product can be ideal for individuals who have
outstanding debts on credit or store cards on which they are paying a high rate
of interest. Often, consumers are charged a fee for making a balance transfer
and this tends to be between two and three per cent of the balance. This sum is
simply added to the total debt, meaning people don’t have to pay it upfront.
Meanwhile, if you can’t repay your debt
during interest-free periods, you may wish to consider taking out low-rate
long-term balance transfer cards instead.
There are also cash back and reward credit
cards to consider. These products are perfect if you intend to pay off the
bills in full each month and they enable you to accrue benefits each time you
use cards.
Another option, and one that can suit
frequent travelers, is fee-free foreign usage cards. Whereas credit card usage
overseas usually incurs a fee of between 2.5 percent and three percent of
transaction amounts, these specialized products don’t impose such
charges.
By weighing up the various options, you can
make savvy credit card choices that save you potentially considerable sums of
money in the long run.
Marianne Cohen spent the best part of the last decade working as financial advisor
in Boston as London. She now blogs about finance while trying to start up
her own firm.
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