Credit Card Comparison

Love them or hate them, credit cards provide a very convenient form of paying for items such as food, petrol, dining out, holidays and so on. Many credit cards can be used across the world and represent a relatively safe method of transacting business – especially with the introduction of the new chip and pin.

 

On the down side however, high levels of credit card debt is rife amongst many people in the United Kingdom. This is largely due to the fact that in the past they have been very accessible to any type of individual – whether they have a poor credit rating or a perfect one. In addition, it is perhaps true to say that whilst spending on a credit card, as opposed to cold hard cash, it may be more difficult to keep track on what has been spent and when.

 

The rates of interest applied to credit card borrowing have been traditionally very high when compared to other forms of borrowing. This is largely due to their unsecured (The lender has no recourse to claim an individual’s property in the event of payment default) nature and also their accessibility as has been previously mentioned. Typical rates applied to credit cards may be between 15% - 20% but of course they are rates higher than this.

 

In recent years it was possible to transfer a credit card debt to a new lender offering an interest free offer period for a set amount of time – Usually every six months or so. This facility was widely used and although still in existence, many credit card companies now charge a transfer balance fee which is typically around 2.5% (Of the outstanding credit card balance that is transferred)

 

It is possible to apply for multiple credit cards and it is likely that each will have a different credit limit – This will largely be dependent on your income and credit worthiness although it is possible to negotiate a higher limit if there is a specific need for doing so.