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Whether you’ve had a credit card before or are a complete
novice in the world of plastic finance, getting a new credit
card is a minefield of information and a tiring business.
After all, it’s your money; you want to make sure you
are getting the best deal, correct?
But with hundreds of credit card companies all pushing for
your business it can be difficult to see through the carrots
they dangle to get to the most important parts of the contract.
You need to know whether or not a credit card will suit your
lifestyle, spending habits and current financial situation,
finding a card that matches your wallet is really not as important
as whether or not you are going to get a good rate of interest!
Even if you have a bad credit history, if you want a credit
card it’s well worth applying. Many companies specialise
in lending to people with little or no credit history and
you can use credit cards to help get your credit score back
up (as long as you are sensible with it!).
One good thing about having so many companies desperate to
give you a credit card is it means that there is plenty of
choice for you, and credit card companies are offering brilliant
new customer bonuses, such as cashback or 0% on balance transfers.
Many credit card companies are now offering cashback on purchases.
For everything you buy on your card you will receive a percentage
of it back as cash, either as a credit on your account, or
sometimes as points you can use to purchase other goods and
services. These cards can be brilliantly rewarding if you
pay off your full balance every month, but be aware that many
cards with cashback incentives do charge a very high standard
APR.
If you are stuck in the grips of owing a lot of money on one
high interest credit card, you might want to consider switching
to a card which offers 0% balance transfers. These deals mean
that you can transfer your current debt to a new card, who
will charge you no interest for a fixed period of time. You
can then switch the balance to a different card once the initial
0% interest period is over. These deals are great if you are
struggling to get out of debt and are finding that the interest
on your current credit card is making your monthly payments
insignificant. Credit cards with 0% balance transfers are
best if you are not planning on spending on your credit card
a great deal, and if you intend to keep changing your card
to take advantage of 0% interest on balance transfers. These
offers usually come with quite a high standard rate of interest
once the offer period is over, and for standard purchases.
If you are not sure which type of card to go for, but
want something that is tailored to your needs you might
choose a credit card company with a “create your
own” scheme. With this kind of flexibility you
can choose which facilities best suits you and your
situation. Maybe you would like to pay more standard
interest so you can get higher cashback rewards? Or
a low rate of interest with little or no cashback? Or
maybe somewhere in between?
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