Guide to Save Money on Credit Cards

Credit CardsAshleigh on  – Credit Cards

I have always had a credit card throughout my adult life, but only recently in my decision to make money saving my living have I looked into them in more detail. Firstly, I recommend living within your means and where possible try to remain credit card and also debt free. However, I appreciate and have experience of why sometimes we need to take some form of credit, Below is my guide to credit cards and what type of card may be for you if you do need credit or need to manage your existing credit by transferring to a lower or 0% interest rate.

Ready to compare? Here you will find the best deals on credit cards for 2016   – To use my credit card comparison tables click here.

Credit Cards Explained – The Basics.

A credit card enables the cardholder to make purchases on credit.

The credit card issuer pays for the purchases on the cardholder’s behalf and adds the cost of the purchase to the cardholder’s account. Most credit cards have credit limits which are usually based on the card provider’s opinion of the credit worthiness of the cardholder.

A bill is sent by the card provider to the cardholder every month. The bill itemises any new transactions which have been made since the last bill was issued. The cardholder can then choose to pay the bill in full or pay just some of the bill — subject to a minimum payment.

If he or she chooses not to pay the entire outstanding balance, the card issuer may add interest to the total debt. Further costs may be incurred — and special incentives withdrawn — if the cardholder fails to make the minimum repayment on time, every month.

To apply for a credit card, the applicant must be at least 18 years of age and most card issuers will check an applicant’s credit rating before accepting his or her application. You can check your credit rating for free here.

Apart from providing credit, credit cards can be more secure and convenient than cash. If for example a card is lost or stolen and is then used fraudulently, the card holder may not have to pay anything towards the card issuer’s losses. If a cardholder uses their credit card to pay for an expensive purchase — a holiday, a car, or a new TV for example — and the seller subsequently closes down and fails to provide the goods or service, the card issuer is likely to cover the cost.

Credit Card Comparison  – What to look out for?

Ready to compare credit cards? – To use my credit card comparison tables click here.

Because there are many different types of credit cards, it’s important to ensure that when comparing one card with another, that the comparison is made between cards that are intended for identical or similar purposes. Depending on the user’s requirements, spending habits and how they like to manage their money, some cards are more appropriate than others.

For example, there are cards specifically for individuals who have a poor credit rating; cards which are designed for people who travel overseas regularly and cards that make no charge when used to make purchases. Some cards run cashback schemes while others are designed for transferring a balance from one card to another. An increasing number of card issuers, but not all, include ‘contactless’ functionality with their cards, enabling users to pay for goods and services simply by placing their card on a card reader. What is harder — if not impossible — to compare, is the standard of service different card issuers provide.

Card issuers will occasionally run promotions which offer favourable terms to users on specific transactions, but only for a limited period of time. Balance transfers at 0% interest rate, discounts on wines or holidays and favourable deals on Insurance, are all designed to encourage usage among cardholders.

Ready to compare credit cards? – To use my credit card comparison tables click here.

More easy to understand explanations you may like:

What are Balance Transfer Credit Cards.

What are 0% Spending Credit Cards.

Cash Back & Reward Credit Cards – How do they work?

Low Rate Credit Cards – What to look out for?

Premium Credit Cards – What is the difference?

Earning Air miles with your Credit Card.

Credit Cards that can help repair your credit score – How?

What is a normal balance transfer fee?

Use my comparison tables to compare:

Balance Transfer Credit Card Deals

0% on Purchases and Spending Credit Cards

Cash Back Credit Cards

Reward Credit Cards

Low Rate APR Credit Cards

Premium Credit Cards

Air Miles Credit Cards

Credit Builder & Repair Cards

 

 

 

 

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