Wednesday, March 26, 2008

What You Need To Know About Credit Cards

What is a credit card?


Other kinds of cards include:

1) A cheque guarantee card, issued by your bank, that you can use to ensure that your cheque will be honoured up to a certain limit. 2) A chargecard where you have to repay the full amount at the end of each month. 3) A debit card, issued by your bank, where whatever you spend is immediately deducted from your bank account

Do you need a credit card?

Using a credit card is a useful way of making purchases:

a) A credit card means you don't need to carry huge amounts of cash around and risk losing it. b) A credit card means you can buy items over the internet. c) A credit card means you can make purchases abroad without having to worry about local currency. d) A credit card gives the opportunity to spread the cost of a large payment over several months. e) A credit card is useful in an emergency. For example, an unexpected repair to your house or car.

How do you choose a credit card?




You may have to study the small print carefully to discover if there are any negative factors.A list of the current cards on offer in summary is available on this credit card summary page.

What You Need To Consider:

1) APR (Annual Percentage Rate) This is the rate of interest that you will pay on any outstanding balance.


3) Balance Transfer Rate Card issuers may offer you a lower rate of interest if your swap your balance from another credit card to theirs.






9) Exceeding Your Limit You may also be charged a fee if you exceed your credit limit.

Will Your Application Be Accepted?




Insurances and Protection.

What You Can Do:





What The Issuer Will Do




Important Points To Remember:

a) Credit cards can be a very useful tool to help you to manage your finances. b) Choose your card carefully, remembering to read and understand all the terms and conditions before you sign up. c) Remember to set yourself a budget and decide how much you will pay off each month. d) Check your statements carefully each month. e) Look after your card to prevent it being lost or stolen.


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