| A range of factors
will come into play when comparing UK credit cards and finding cheap deals. It
is only by being aware of all of them that you can ensure that you are getting
absolutely the best product for your needs. That is why in this section we have
aimed to introduce you to a range of different features and point out what you
should be looking at in every credit card offer that you come across.
Remember that the only way you can be sure to find the best quality, low interest
credit card that is available is by being familiar with the market. If you want
to find cheap UK credit cards do the legwork, get to know the products, and you
will be rewarded. This shouldn’t stop once you have found a credit card-
always keep an eye out to see if a better deal has come along.
Annual fee
Annual fees are becoming less of a regular occurrence with credit cards UK today.
Although extra charges should be incorporated in the annual percentage rate it
is still worth checking whether the card you are interested in carries an annual
charge or not. The market is so competitive today that you needn’t pay annual
fees if you don’t want to.
APR
APR is perhaps the most useful tool that you will have that will aid you in comparing
and finding cheap UK credit cards. You can read about APR in more detail here.
The first decision you will need to make is what type
of APR you want to go for - variable or fixed. Once you have made this decision
you must be sure to compare variable rates with other variable rate cards, and
fixed with fixed. Variable rates will usually start off lower than fixed rates.
You will also need to be sure to check out introductory offers fully –
what looks like a cheap deal may not be in the long run. Many cards today will
come with introductory rates of 0% APR. You will need to look at the length of
time for which this offer lasts, and also find out whether the offer is applicable
to balance transfers, purchases, or both. If your credit card offers 0% interest
on balance transfers then if you transfer a balance from another credit card account
then it will not accrue interest during the introductory period. If the card offers
0% introductory interest on purchases then any goods and services you pay for
with your card will not attract any interest during that period. Some cards offer
0% interest on both balance transfers and purchases, which is obviously a better
deal for you.
Interest free period
Every credit card will carry with it an interest free period; it is your business
to find a card that has as long an interest free period as possible. Within the
interest free period your transactions will not accrue any interest; if you pay
off the cost of your purchases within the interest free period then you will effectively
be using your credit card for free. It is normal for the interest free period
to be around 25 days.
Rewards
Many credit card companies offer cardholders the opportunity to earn rewards as
an extra incentive. Some such rewards are valuable and offer many advantages to
the customer, where others might seem to promise more than they actually deliver.
If you are thinking about getting a reward card then try and work out logically
how much money you would need to spend on your card in order to receive the rewards
that you desire, and ask yourself whether or not this is a reasonable expectation.
Withdrawal charges
A credit card should not be regarded as an easy and quick way of obtaining cash.
This is because when you withdraw cash from an ATM or over the counter you will
be charged at high rates. Withdrawing cash in this way is known as making a cash
advance, and you will be charged a higher interest rate than you would for balance
transfers or purchases. Moreover, there is no interest free period with cash advances.
Make sure that you look into withdrawal charges when considering a credit card.
An area often overlooked, withdrawal charges will bear resonance with people who
are intending to use their credit card for cash withdrawals whilst on holiday
or travelling abroad.
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