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UK Credit Cards -- Which One Is Right
shopping for UK credit cards for the first time, or just want to add
to your existing collection, the options can be mind-boggling. UK
credit card companies are among the most competitive globally. With
so many choices, it's challenging to find the right one. Before you
apply, take time to analyse your needs.
Cash-back UK credit cards reward you with as much as 5% cash-back on
purchases, including groceries and petrol. You can get a monthly
cash-back check directly from the credit card company, or apply the
cash to your balance. You'll need excellent credit for the best
cash-back deals, and many require that you pay your balance in full
Travel cards benefit frequent fliers with sky-miles and discounts on
accommodation and rental cars. Many cash-back and travel cards offer
promotional bonus cash-back and airline miles to attract new
Balance transfer cards with low or 0% promotional interest rates are
great for consolidating credit debt, and for saving on high-interest
First-time cards for college student feature benefits like rewards
for bookstore, record store, and video rental purchases. Some offer
additional rewards for paying on time, not going over the limit, and
maintaining a good GPA.
With adverse credit, you'll generally pay high interest. A secured
card is the best option because the fees are usually less than those
charged for unsecured cards. Secured cards are available to anyone
willing to deposit an amount with the credit card company as
collateral against the credit balance.
Your credit limit will equal the amount of your deposit. If you're
scrupulous about repayment, you can use the secured card to rebuild
your credit score, and then apply for an unsecured low-interest
card. When you close a secured account, assuming the balance has
been paid, you'll get your deposit back.
Even with exceptionally bad credit, you can get a card if a
homeowner is willing to guarantee your balance, and you don't mind
paying interest as high as 40%. A better option might be a prepaid
debit card, if you have the money to prepay it.
Unsecured cards for adverse credit are a choice of last resort.
These cards typically charge high fees for processing, in addition
to an annual fee. When you receive your first bill, the fees may
already equal your credit limit. But if the fees are paid promptly,
and the account is handled responsibly, the card can be an effective
Before applying for any credit card, be sure to read the terms and
conditions carefully to avoid getting in over your head. The more
completely you understand your new card, the more you'll enjoy it,
and the more you'll benefit from having it.