Credit Card Articles

Credit cards are loved by some but treated with suspicion by many others. Many people who love them don’t understand how they work and end up in debt while those who treat them with suspicion do so, again, because they do not understand how they work.

True there are disadvantages to having a credit card. However, there are many more advantages to having one. Here we look at some of the advantages and disadvantages of them

Advantages:

1. Free credit. The primary reason behind credit cards and why they are so popular. They provide you with credit so you can purchase something and not have to actually pay for it until a later date. This credit is free if you pay the full amount as and when due.

2. They provide a safe and easy way to pay for things in the UK and abroad. Especially if you are buying things over the phone, by mail order or on the Internet.

3. Purchase protection – under Section 75 of the 1974 Consumer Credit Act, card providers and retailers are required to take joint responsibility for faulty purchases. Hence, if you buy something, valued between £100 and £30,000, that turns out to be faulty you are entitled to a refund from the card provider.

4. Fraud protection. If you are a victim of fraud you will not have to pay if a fraudster uses your card.

5. Global acceptance. They are accepted in almost every country in the world. You can use them without having to worry about exchanging for different currencies.

6. Many cards offer incentives such as loyalty points, charity payments or cash back for using your card.

Disadvantages:

1. The big disadvantage of them is that you will be charged interest if you do not repay your balance in full every month. Interest rates vary with different card providers but can be as high as around 20%.

2. They all have a credit limit, which may be less than you expected or hoped for. If you have a poor credit rating or are getting a card for the first time your credit limit may be capped at around £500. Those with a good credit rating or have been using a card well for a number of years may get a credit limit in the region of £4,000.

3. I could have and maybe should have included this in the advantages section but a credit card teaches you to manage your finances in a disciplined manner, otherwise you will quickly accrue a large debt.

4. The fees are a disadvantage as they are some of the highest on the market. Fees include for cash advances, late payments as well as the interest rates. Failure to manage your card properly will subject you to these fees, which can quickly make your balance significantly higher.

While there are a few disadvantages to credit cards, there are overwhelming advantages. Careful and disciplined management can eliminate all the disadvantages, leaving you with only the major advantages of having a card. Make sure you compare credit card rates before you pick a card as these can vary significantly between card providers.

Ben graduated with a business and economics degree back in 1998. Following many years service in the financial sectors Ben has turned his attention to helping everyday people with their finances. He has seen first hand how many people struggle with their financial situation primarily due to poor advice and misunderstandings of how money works. His latest venture is a blog that allows users to compare the top credit cards in the UK.

Amid stiff competitions, credit card providers are coming up with different types of cards targeting different categories of people with different features and offering target specific benefits. Besides the standard credit cards for general public, there are student credit cards, business credit cards, store credit cards, airline credit cards, gas credit cards, teen credit cards, etc. These cards are specially meant for the targeted group of people.

Standard credit cards: Almost all the credit card providers offer standard credit card meant for general public. They are unsecured credit cards that are available to people without any guarantee, security or mortgage from the users. The credit card companies generally see the credit rating of the applicant before providing the credit cards. In this category, you can get low interest credit cards and credit cards with reward points.

Business credit cards: Many card providers offer credit cards for small businesses. You should know the use of business credit card if you want apply for one. Having a business credit card can be a huge help to the company in a great many ways. However, if you are not careful, it could also have its disadvantages as well. You should understand what the credit card company is offering, how you can take advantage of it. Business credit card facilitates various business transactions that will make your life easy and comfortable.

Student credit cards: Students credit cards are meant for college and university students. Most card providers ask eligibility criteria for the applicants of student credit card that you should be 18 years old and you should be enrolled in a college or a university. Credit card companies offer student-specific benefits in the purchases with the student credit cards. The card providers also facilitate students to pay college fees with the card. There are many other benefits you can avail by using the student credit cards.

Gas credit card: With this card, you can purchase gas at the pump or at the convenience store. Some gas card provides reward with the purchase of gas with card. You can earn cash back rewards and rebates in purchases.

Travel credit cards: One such card available is airline miles reward credit card. It is offered in partnership with a credit card company and an airline company. This card allows you to earn points or miles for every dollar spent with the card. After earning a certain number of points, you can get ticket for air travel with the applicable airline. Airline miles reward credit cards also provide more travel-related benefits then other credit cards, like a higher amount of travel insurance coverage.

Balance transfer credit card: You can save hundreds of dollars with the balance transfer credit cards. Some credit card offer 0% introductory APRs for six to 12 months in every transactions you make. So you can transfer your balance from a loan which has high interest rate to a card which offers 0% APRs.

Credit cards for bad credit: This is a special type of credit card for people with bad credit. The card companies put some restrictions not typically found on other types of cards. The credit card limit is lower in such cards. Some companies ask for some type of security from the applicant before providing the credit card. They may ask you to maintain a savings or some other type of account that will cover the expenses on the credit card.

Besides, credit card companies are offering cash reward cards to attract the prospective customers. They offer cash rewards in every purchases made with the card, discounts in the selected products purchases from some partnered companies or selected stores. Credit card companies are also providing store specific card meant for purchases in the select general or convenience store only.

CreditMe.com is a free online credit cards review and application website. We offer credit cards selection from visa, master cards, bank of America, orchard bank, discover, American express, citicards, visa credit cards, and many others. We have quite some categories and hundreds of credit cards selection to fit your need. Compare credit card offers at CreditMe.com

Credit card offers are everywhere. From your mailbox to the Internet. It seems like you just can’t get away from them. When you’re looking to find an instant approval offer, I wanted to give you some pointers on how you can find a card that’s going to work for you and your wallet. What you’re going to find that is if you look hard enough, you can find one.

How you can find an instant approval offer…

#1 Be weary of the mail - Your mailbox is probably always filled with credit card offers. You’re going to see those envelopes claiming, “You’re approved!” to “Get your decision now!” I frankly hate these because you’re going to find that you have to mail them back in the mail. I don’t like having my information such as my social security number on an application that someone can steal.

#2 Check your bank - With the great old Internet today, you can do all of your homework online, as well as even apply for a card. What you’re going to find is that you can check your local bank, or any other bank for that matter. What you’re going to want to do is check your bank to see what kind of offers they have. If they are going to approve you instantly, they are going to tell you on the application.

What to look for on an application…

If you do find a card that you want to apply for, look at the points regarding that card. Banks know that people love decisions right now. If they are going to give you a decision now, they will state that on the application. If you’re unsure if they do, or not, you can always call them up and ask.

Just because a card is going to approve you instantly, you don’t want to apply for it just based on that. What kind of rewards are they going to give you? How is it going to benefit you?

What you’re going to ask yourself is why do you want to apply for a card and get approved now? Are you impatient? If so, I would recommend that you wait for a card that suits your needs in terms of rewards. You can find a card that you like, apply, and wait the extra 2-3 days to get a decision. It’s really not that hard!

There are a lot of cards out there, so do your hunting today to see what works for you!

Are you looking for instant approval credit card offers? I have some of the best online that you can consider today.