Business Credit Cards

A Guide To Business Credit Cards

Offered by virtually all mainstream lenders including banks credit unions, trade bodies and building societies, a business credit card is basically a credit card registered in the name of a business.

This means that similar to a personal credit card, a business credit card has a credit limit, an agreed interest rate and the minimum balance that you must pay off every month. Business credit cards generally offer a higher credit limit than personal credit cards.

What’s more, depending on your business credit and your personal credit score, you can negotiate your credit limit with your lender. In general, the credit limit ranges from £1,000 and £10,000. It is worth noting that you can apply for multiple cards if you want to issue your staff members with these cards.

However, because all the cards will be issued under one business account, they will share a common credit limit. Examples of popular business credit cards in the UK include RBS, Santander, Lloyds, NatWest and Barclays business credit cards. With that in mind, here is some more information of these cards.

Business Credit Card Eligibility

To be eligible for these cards, you have to meet certain requirements. While these requirements generally vary from one bank to another, virtually all card issuers will consider you business’s annual turnover over the last six years or so, as well as whether you have a recent criminal record.

Additionally, some lenders may require you to be an existing customer with an active bank account in order to qualify for a business credit card. If your business is new and therefore has no credit history, your lender will likely consider your business’s financial projections as well as your personal credit history.

Additionally, your lender may require you to provide copies of your business plan and bank statements.

Credit Limit

Your credit limit can range from a few thousand pounds to tens of thousands of pounds depending on various including your business’s credit rating, turnover, liquidity and size. Your age and credit history may also affect your credit limit. In general, if you tick all the right boxes, you would be able to get a higher credit limit easily.

Debit Interest

As with your personal credit card, you will need to pay off interest on any debt that you fail to pay off within your billing cycle. In general, your card issuer will send your monthly bill every month and allow you 28 days or so to pay off your debt.

When you get you bill, you can either pay off the entire debt or the stipulated minimum amount, which is usually two to three percent of the total bill. If you fail to clear your entire bill, you will incur debit interest on the balance, increasing your debt.

Business Charge Cards Versus Business Credit Cards

A business charge card and a business credit care are similar in many respects. However, the former requires you to pay off your debt at the end of each billing cycle, whereas the latter allows you to roll over the balance on your account. Because charge cards do not allow cardholders to accumulate a huge debt over a long period, they are particularly ideal for businesses that want to manage their purchases more effectively.

Applicable Fees

Some of the fees associate with these cards including debit interest and an annual account maintenance fee, which, on average, is about £30 per card. In addition to these fees, your lender may also charge you individual fees on particular transactions either at a set amount or as a percentage of a transaction’s total amount.

Moreover, your lender may impose fees on your payment transactions too.

The Benefits of Businesses Credit Cards

In general, these cards offer all the convenience associated with personal credit cards and much more. Some of the benefits of these cards include:

Convenience and flexibility – Because business credit cards allow entrepreneurs to borrow money at will, they help prevent liquidity risks. What’s more, they offer great flexibility in terms of borrowing and payment schedules. More specifically, you can borrow whenever you wish and repay the debt at your own convenience within the billing cycle.

Easy qualification — Because most credit card companies do not have stringent qualification requirements, it is relatively easy to qualify for these cards. In most cases, all you need to get one of these cards is a good credit history and an established business.

Incentives and perks – To entice customers, these cards often offer a wide range of incentives including business advice, cheaper rates on commercial services and products. It is worth noting that these incentives may be different from the incentives offered by personal credit cards.

For instance, because credit card companies normally expect businesses to spend more money compared to the average person, business credit cards offer larger sign-up bonuses compared to personal credit cards. Additionally, most of these cards offer an interest-free period of up to two months on purchases as well as flexible replaying terms to help businesses, particularly those with irregular cash-flow, manage their cash-flow requirements.

To support fledgling entrepreneurs get on their feet, some cards offer a 0% introductory APR. Of course, even with a 0% introductory business credit card, you should always keep your debt level at a manageable level.

Because entrepreneurs generally spend a lot of money on travel, most of these cards also offer travel perks such as access to an airport’s VIP lounge and hotel discounts during business travel.

Financial management – These cards help entrepreneurs separate their business spending separate from their personal spending, improving a business’s bookkeeping and accounting. Furthermore, they make it relatively easier for employees to make purchases and more importantly, allow business owners to monitor employees’ business purchases.

Build credit — A business credit card can help you build as well as improve your business’s credit history.

Disadvantages

Similar to any other financial product, these cards have their share of disadvantages including:

Expensive source of business financing — These cards typically feature a high APR and other associated fees, which tend to be on the higher side. Because of these, these cards offer an expensive finance option.

Security issues — Card theft is a problem in the UK. For instance, according to figures from UK Finance, a trade body, cardholders in the UK lost about £287 million due to card theft in the first half of 2017 alone. In the same year, Tesco Bank had to reimburse some of its customers nearly £3 million after a credit fraud attack.

This means that these cards may pose a security threat to your business, especially when they fall into the wrong hands, leading to fraudulent charges.

May affect your personal credit – In some cases, your lender may hold you personally liable for your credit card debt.

Business Credit Cards versus Other Financing Options

Compared to other business financing options offered by mainstream lenders, such as invoice factoring and business loans, these cards typically carry a more expensive annual percentage rate (APR), which is usually comparable to overdraft interest. Thankfully, you can lower the interest rate by making accelerated payments.

Are Card Charges Tax Deductible?

When preparing your taxes, business credit card charges can be an allowable expense, meaning you can claim them. However, you should always consult with your accountant before you do that.

Business Credit Cards and Your Personal Finances

Whether or not your business credit cards will affect your personal finances and vice versa depends on several factors including the nature of your business and your position in the business. For instance, if you’re a sole trader or a partner in a partnership business, your lender will likely hold you liable for your business debt.

On the other hand, if you run a limited company, your business debt may not affect your personal finances.

Conclusion

Business credit card are similar to personal credit cards in that the grant cardholders instant access to credit facilities. However, they generally offer more incentives than personal credit cards. This makes them particularly useful for small businesses with irregular cash flow, meaning they regularly require a bridging loan.

What’s more, you can deduct your business credit card charges from your taxes. Some of the benefits of these cards include rewards and incentives, easy access to credit facilities and relatively easy qualification. Some of the inherent disadvantages of these cards include security issues and a relatively high APR.

Depending on the type of business you operate, your credit card debt could affect your personal finances.

Compare Travel Credit Cards

A Guide To Travel Credit Cards

Most people passionate about travel would have probably come across YouTube videos wherein couples travel the world without spending much. This leaves the viewers often asking “how do these people manage to travel for a living?” The answer invariably is credit card rewards or points.

From a financial perspective, it’s sensible to substitute travel expenditure (cash) with points. Irrespective of what your travel objective is – business, vacation, or the desire to see the world – rewards credit cards make complete sense.

That said, these rewards are not just for traveling. You can even earn cashbacks and save them for retirement or to pursue some other objective.

Make Sure You Check Your Credit Rating Before Applying

Without a credit card, you cannot earn rewards or points. So apply for one if you don’t own a credit card already. But before you apply for a credit card, make sure your credit standing is good. If you’re not sure about the same, get a free yearly credit report done. The majority of banks account credit scores to ascertain an individual’s creditworthiness.

If you don’t pay credit card bills on time and incur interest charges monthly, card rewards or points should not be your priority (at least for the time being). Credit card points are for people who do not accrue credit card interest charges. To get in line for these rewards, you must pay card bills every month, have basic levels of savings, and be budget-conscious and generally organized.

Have A Goal

If you’re not certain about what you want to derive from your credit card, you would end up buying any random card and not generating sufficient value out of it. Most people get aboard the rewards game for travel points or cashbacks, or both.

Travel points should be your pick if you travel frequently and cashbacks if you shop quite often. However, there are people who don’t mind travel rewards but don’t have a travel schedule in place.

Without concrete travel plans, planning beforehand for the cards and points could be difficult. But if you’re looking at these cards from a long-term perspective, you would be a lot more efficient with those cards. While you’re assessing your goals, consider upgraded experiences such as first-class travels and suites.

Maybe you want to further stretch your points and have a lot more stuff free of cost.

Choosing the Right Card

Having a powerful card with major sign-up bonuses or rewards is probably the easiest route to kick-start your rewards strategy. Make sure your credit card helps you save money irrespective of what your nature of expense is. In other words, ensure your card provides the highest rewards possible on a range of spending categories.

Choosing the credit card type depends on the rewards or points you value the most. For people who prefer cashbacks, cards offering cashbacks would be ideal. If you prefer air miles, double-miles cards would be right. And then there are also cards that offer savings as cashback on food or grocery shopping, fuel, etc.

There are fuel cards that offer savings up to 5 percent. The task, however, is to find such cards.

Sign Up for Loyalty Programs

If inexpensive travel is your goal behind collating credit card rewards, you must seriously consider getting on to those loyalty programs. There are different loyalty programs and the one you choose should be based on your travel habits and preferences.

For instance, if you reside in a particular city and fly a specific airline frequently, it makes sense to sign up with that airlines’ program. You can even sign up for loyalty programs offered by hotels.

There is usually no cost to sign up for these programs, and therefore there is no reason why you should not be getting on-board with multiple programs simultaneously.

Dining programs usually make it easy to double-dip, meaning you would earn rewards for both a credit card payment and miles bonus or points via the dining program for having dined at a particular participating restaurant. Many hotel chains and major airlines provide dining programs in conjunction with their loyalty programs.

The ideal option would hinge on the currency you want to earn those loyalty points in. Also consider the restaurants that are part of the various programs. Pick one that rewards for dining at the restaurants you prefer. And do not forget to link your card that gets you bonus points on restaurant spending.

Maximize Your Purchases

Just owning various cards is not going to earn you points. You must shop with them. And if you’re looking to earn maximum points possible, your shopping patterns should be fairly consistent. Remember you need not shop out of your way or buy things you wouldn’t have bought otherwise.

The key is to push all your expenses to your card. In other words, use your credit cards during every shopping scenario possible and ensure you pay the entire balance every month.

Defaulting on payments is a strict ‘no’, as you would incur interest charges and that could hurt your accrued credit points. Determining the right card for particular retailers could be slightly challenging, particularly when certain cards could alter the different product or shopping categories’ values once every quarter.

Another way to make more rewards is via shopping at an online shopping portal. Shopping directly on the website of your favorite retailer may not earn you points. But accessing your favorite online retailer’s site through a shopping portal or online mall would automatically earn you miles or points for each pound spent.

These rewards are tagged to the points that you would eventually make for having used the credit card.

Create Brand Loyalty and Make It Count

If you believe you shop at a particular brand more than an average buyer, you must consider capitalizing on your relationship with that brand. In other words, attain elite status with the brand. Attaining such a status won’t just open you up to various shopping upgrades and enhanced customer service, but the elite standing is also pivotal for earning additional points.

Once you’ve earned the status, you can challenge or match other hotels and airlines and reap in to the benefits across various programs.

Kindly note all brands may not offer “elite status” programs and the status levels could also vary across programs, with every hotel brand and airline probably resorting to a unique naming convention. For example, some brands may have three or four levels and then there could be other companies that may increase the level count.

Attaining an airline’s elite status level could mean perks such as priority boarding and zero-cost checked baggage allowance. A similar status with hotels could fetch you complimentary room and late checkout upgrades. Needless to mention, the benefits offered would increase with the status level attained.

Tracking and Redeeming Points

Accruing points is only half the job done. It could be extremely difficult to manually track all the miles and points accrued if you’re a frequent traveler or use the card for expenditure quite often. Therefore, use a reward point tracking software or tool to stay atop your account balances. The remaining half of the equation is redeeming those points.

If you have a goal in place (as aforementioned), making good use of those points becomes easier.

Pre Paid Credit Cards For Teenagers Under 18

A Guide To Pre Paid Credit Cards For Teenagers Under 18

Teenagers are no longer satisfied with asking for a few bills to cover expenses or having their monthly allowance. Equipped with smartphones and more independent than ever, nowadays they also go to the ATM. They have access to a bank account and pay by card, in cash or installments. This is all happening from the age of 13, which is much earlier than just a decade ago.

This is possible because banking options for teenagers have multiplied, thus enabling them to have an early banking debut. Nowadays, there is a wide range of financial products for children from the age of 13 to 17. The pre paid credit cards are linked to the bank and savings accounts of their parents who provide funds.

Many parents see advantages to the system. As a result, they ask for extensions of their credit card in the name of a child and set an expenditure limit.

The banks typically offer these services to children from 13 years of age, which was previously limited to 16 years of age. This allows parents to share banking benefits with children.

At the beginning of adolescence, it is time for boys and girls to learn how to use money. At that age, they should understand the value of money and know how to handle it. They should grasp with what it means to owe money and start managing their own budget. Many fathers and mothers consider whether to provide their adolescent children with credit or debit cards.

Pre paid credit cards are a popular payment option available to teenagers. They are issued in the minor’s name and allows the parents to monitor and control usage. In addition, parents can manage monthly payments.

Advantages Of Pre Paid Credit Cards For Teenagers;

  • Security – it is safer to carry a card than to carry cash
  • Learning – allows teenagers to prepare for their financial future
  • Internet – payments can be made online
  • Allows parental monitoring and control
  • Can be linked to parent’s saving account

The prepaid cards provide a more secure means of payment than cash and can be used anywhere in the world. They can also work as a gift card or money reserve for a trip. These cards allow younger people to become familiar with money and learn how to manage their budget.

What Kind Of Card Is The Best for Adolescents?

There are hundreds of credit or debit cards and many of them are designed for teenagers. Before providing a card to a teenager, it is a good idea to compare credit cards and choose the ideal option that is most suitable for your son or daughter.

Prepaid cards are similar to gift cards and can serve to pay online and offline. They have the advantage that they do not allow overdrafts, but they do not really work like debit or credit cards. The cards help teenagers become familiar with plastic money.

Debit cards do not provide credit, which is an advantage when it comes to adolescents. However, they do not serve to create a credit history. Credit cards provide overdraft facilities, thus allow borrowing. This makes them unsuitable for adolescents.

At What Age Should Parents Give A Card To A Teenager?

Many parents are keen to know at what age they can give a child a card. This is a decision that must be made based on parents’ preferences or discretion. In general, an appropriate age to start thinking about it is 14 years old. However, the call depends on whether the boys or girls are responsible enough.

A good strategy when parents are not convinced that their child will behave with full responsibility is to start with a prepaid card that is similar to gift cards. It can be used to pay in most places that accept credit cards. It works like a digital wallet that can be recharged directly via the parent’s bank account.

Parents must be aware that early exposure to plastic money prepares children for the time when they leave school at about 17. It is a good idea for children to have experience using a pre paid credit card before the age of 18. If they start using a card while at school, parents will be able to better monitor usage trends and correct potential issues.

It is also important to know that the law prevents children under the age of 21 from freely accessing a credit card, although they can always do so with a guarantor. A prepaid card allows your child to pay at merchants and withdraw money from ATMs with certain limitations.

For instance, the child cannot withdraw more than the available balance on the account. Parents can also set a maximum withdrawal amount. The card can be linked to a bank account in the child’s name.

Keeping The Card And PIN Number Safe

It is vital to teach adolescents how take care of the card, especially the PIN number associated with it. The loss of the card can pose a serious problem, particularly for pre paid credit cards with a higher limit. The use of credit or debit cards can create issues for teenagers who are not careful with confidential information since it is essential that they keep the PIN number secret.

Additional Considerations

The prepaid bank card has its origin in the mobile phone. Technology has enabled the use of mobile phones to acquire goods and services. It was therefore necessary for financial institutions to adopt an innovative way to provide access to plastic money for adolescents.

Credit card providers like Visa and MasterCard also discovered a viable option to win over new customers, especially teenagers and those who use cheque account services.

The prepaid bank card is available to everyone, including younger ones under 18 years old. The main advantage is that there is never an overdraft that generates debt. A prepaid card allows control over the budget while offering the convenience and benefits of a debit card.

Travelling

When traveling, there is no need to carry cash. In most cases, if a card is lost or stolen, the credit balance will be transferred through a new account and the cardholder will receive a replacement card. A prepaid card issuer offers a guarantee in case of loss or theft. This is aimed at ensuring that the holder benefits from the same advantages as credit card holders.

It comes as no surprise that many parents are taking advantage of these cards for a variety of reasons. The approach provides an opportunity for adolescents to start banking early. In addition, teenagers can develop basic financial education skills, become more responsible and understand the value of savings.

Many families prefer that children carry a micro-payment chip card that debits money from an adult’s credit or debit card. Some financial institutions go further by offering wearable devices like a bracelet or keychain, which automatically recharge when the teen’s account has no available balance.

These financial solutions can be used for expenses, such as travel, meals or purchases from the kiosk.

Previously, young people did not gain access to bank services until the age of 18 but now children start from the age of 13 or 14.

They gain access to innovative financial products that are designed specifically for adolescents.

Compare Rewards Credit Cards

A Guide To Rewards Credit Cards

Most people passionate about travel would have probably come across YouTube videos wherein couples travel the world without spending much. This leaves the viewers often asking “how do these people manage to travel for a living?” The answer invariably is credit card rewards or points.

From a financial perspective, it’s sensible to substitute travel expenditure (cash) with points. Irrespective of what your travel objective is – business, vacation, or the desire to see the world – rewards credit cards make complete sense. That said, these rewards are not just for traveling.

You can even earn cashbacks and save them for retirement or to pursue some other objective.

Ensure A Respectable Credit Rating

Without a credit card, you cannot earn rewards or points. So apply for one if you don’t own one already. But before you apply for a credit card, make sure your credit rating is good. If you’re not sure about the same, get a free yearly credit report done. The majority of banks account credit scores to ascertain an individual’s creditworthiness.

If you don’t pay credit card bills on time and incur interest charges monthly, card rewards or points should not be your priority (at least for the time being). Credit card points are for people who do not accrue credit card interest charges.

To get in line for these rewards, you must pay card bills every month, have basic levels of savings, and be budget-conscious and generally organized. There are specific cards that can help build your credit rating, but these usually come with a high interest charge, but as long as you pay them off in full every month then your credit file will start to improve.

Have A Goal

If you’re not certain about what you want to derive from your credit card, you would end up buying any random card and not generating sufficient value out of it. Most people get aboard the rewards game for travel points or cashbacks, or both. Travel points should be your pick if you travel frequently and cashbacks if you shop quite often. However, there are people who don’t mind travel rewards but don’t have a travel schedule in place.

Without concrete travel plans, planning beforehand for the cards and points could be difficult. But if you’re looking at these cards from a long-term perspective, you would be a lot more efficient with those cards. While you’re assessing your goals, consider upgraded experiences such as first-class travels and suites. Maybe you want to further stretch your points and have a lot more stuff free of cost.

Choosing The Right Card

Having a powerful card with major sign-up bonuses or rewards is probably the easiest route to kick-start your rewards strategy. Make sure your credit card helps you save money irrespective of what your nature of expense is. In other words, ensure your card provides the highest rewards possible on a range of spending categories.

Choosing the credit card type depends on the rewards or points you value the most. For people who prefer 0% balance transfer, cards offering transfer deals only would be more suited If you prefer air miles, double-miles cards would be right.

And then there are also cards that offer savings as cashback on food or grocery shopping, fuel, bad credit catalogues etc. There are fuel cards that offer savings up to 5 percent. The task, however, is to find such cards.

Sign Up for Loyalty Programs

If inexpensive travel is your goal behind collating credit card rewards, you must seriously consider getting on to those loyalty programs. There are different loyalty programs and the one you choose should be based on your travel habits and preferences. For instance, if you reside in a particular city and fly a specific airline frequently or book regular holidays with credit cards, it makes sense to sign up with that airlines’ program.

You can even sign up for loyalty programs offered by hotels. There is usually no cost to sign up for these programs, and therefore there is no reason why you should not be getting on-board with multiple programs simultaneously.

Dining programs usually make it easy to double-dip, meaning you would earn rewards for both a credit card payment and miles bonus or points via the dining program for having dined at a particular participating restaurant. Many hotel chains and major airlines provide dining programs in conjunction with their loyalty programs.

The ideal option would hinge on the currency you want to earn those loyalty points in. Also consider the restaurants that are part of the various programs. Pick one that rewards for dining at the restaurants you prefer. And do not forget to link your card that gets you bonus points on restaurant spending.

Maximize Your Purchases

Just owning various cards is not going to earn you points. You must shop with them. And if you’re looking to earn maximum points possible, your shopping patterns should be fairly consistent. Remember you need not shop out of your way or buy things you wouldn’t have bought otherwise.

The key is to push all your expenses to your card. In other words, use your credit cards during every shopping scenario possible and ensure you pay the entire balance every month.

Defaulting on payments is a strict ‘no’, as you would incur interest charges and that could hurt your accrued credit points. Determining the right card for particular retailers could be slightly challenging, particularly when certain cards could alter the different product or shopping categories’ values once every quarter.

Another way to make more rewards is via shopping at an online shopping portal. Shopping directly on the website of your favorite retailer or catalogue may not earn you points. But accessing your favorite online retailer’s site through a shopping portal or online mall would automatically earn you miles or points for each pound spent.

These rewards are tagged to the points that you would eventually make for having used the credit card.

Create Brand Loyalty and Make It Count

If you believe you shop at a particular brand more than an average buyer, you must consider capitalizing on your relationship with that brand. In other words, attain elite status with the brand. Attaining such a status won’t just open you up to various shopping upgrades and enhanced customer service, but the elite standing is also pivotal for earning additional points.

Once you’ve earned the status, you can challenge or match other hotels and airlines and reap in to the benefits across various programs.

Kindly note all brands may not offer “elite status” programs and the status levels could also vary across programs, with every hotel brand and airline probably resorting to a unique naming convention. For example, some brands may have three or four levels and then there could be other companies that may increase the level count.

Attaining an airline’s elite status level could mean perks such as priority boarding and zero-cost checked baggage allowance. A similar status with hotels could fetch you complimentary room and late checkout upgrades. Needless to mention, the benefits offered would increase with the status level attained.

Tracking and Redeeming Points

Accruing points is only half the job done. It could be extremely difficult to manually track all the miles and points accrued if you’re a frequent traveler or use the card for expenditure quite often. Therefore, use a reward point tracking software or tool to stay atop your account balances.

The remaining half of the equation is redeeming those points. If you have a goal in place (as aforementioned), making good use of those points becomes easier.

 

Compare Cashback Credit Cards

A Guide To Cashback Credit Cards

Simply put, a cashback credit card is a type of reward card that gives you back a percentage of the money you spend on the card every year. More specifically, every time you swipe the card, you get a cash reward, which typically ranges anywhere from one to two percent of your purchase.

For instance, with a 1% card, you would receive £1 back for every £100 you spend on the card. The main difference between cashback reward cards and typical credit/debit or pre paid cards is that the former offer cash back benefits whereas the latter don’t.

Still, cashback reward cards have all the features associated with typical credit/debit cards including credit limit, monthly statements, annual percentage rate (APR) and relatively high interest.

Unlike other reward cards, these cards give you the flexibility to spend your reward (money) for whatever you want. At this point, it is important to note that most cashback reward cards allow you to apply your monetary rewards toward your account limit, freeing up money in your card for other needs.

Additionally, some card companies can pay your cashback into your saving account instead of crediting it to your card, allowing you to spend the money as you wish, whereas as other companies will allow you to convert your cashback into vouchers, which are usually converted at a higher rate, to use at selected stores.

In essence, credit card companies use these cards to cultivate customer loyalty. With that in mind, here is a detailed look at these cards.

How Do They Work?

As mentioned above, every time you use one of these cards at the store, the store has to pay the credit card company a percentage your purchase. In turn, the card company gives you a percentage of that fee back in order to incentivize you to continue using their card.

The cash rewards generally vary from one card to another, by card and can even vary from time to time within the same card. Still, most of these cards have an introductory offer, which is typically a higher rate of cash back compared to the standard rate. Once the introductory offer expires, most card companies give a permanent rate.

It is also important to note that some cards have a tiered reward system that pegs the percentage on the amount spent. For instance, 1.5% if you spend at least £5,000 annually and 0.5% if your annual purchases amount to less than £5,000. Also look out for 0% balance transfer programs which can save you a lot if you have debt on other cards.

Tips For Choose A Cash Back Card

Some of the most important factors to consider when choosing these cards include:

Your spending habits – Get a card that matches your spending habits. To do this, you first have to know where you spend most of your money. For instance, if you spend a lot of money in a single category, pick a card that’s geared to that particular category.

On the other hand, if you unable to determine where you spend most of your money every month, a flat cashback card with a single rate would be better option, particularly one with a good and sustainable rate (at least 1.5%).

Such a card would allow you to earn a higher reward compared to a straight 1% card. At the same time, if you’re willing to do the work every three months or so (quarterly), then a card with quarterly bonuses but require opt-in would be the right choice for you.

Minimum spending requirements – Most of these cards have minimum spending requirements. This means that to receive your cash back benefits, you have to fulfill these requirements.

The cash back limit – Before you use your card to pay for an expensive purchase, check to see if there is a limit to how much money you can get back every month. This is particularly important because some cards combine a high rate with a low cashback limit.

In other words, such cards have a cashback cap that could potentially prevent you from getting the most out of your card. That being said, most cash back programs have a maximum cashback limit while others only offer cash back for certain categories of products.

For this reason, you should read the fine print before you sign up for a card.

Compare different cards and their rates — When picking a cashback reward card, compare the rate of different cards. You can compare credit cards here.

How To Benefit From A Cashback Reward Card

To get the most out of your card, you need to do the following:

Pay off your monthly bill in full and in good time — To avoid interest on your card, always pay your bill in full in good time. This is particularly important because the annual percentage rate (APR) on these cards is typically much higher compared to the APR on other credit cards, meaning the interest rate will likely wipe out your cashback gains.

At this point, it is important to note that credit card companies normally charge interest on the entire balance irrespective of the amount owed. Put another way, the only way to avoid interest charges is to pay off your bill in full on time.

Annual fee versus no annual fee — Get a no annual fee card if your cashback will be lower than the annual fee. On the other hand, if you intend to spend big regularly and are able to pay off the balance comfortably, then a card with an annual fee and a higher rate would offer you the most value. In other words,

Take full advantage of the introductory fee — The best way to take advantage of a relatively high introductory fee, say 5%, is to get the right card when you plan to spend a lot of money or buy something expensive. However, do not let the high rate influence your purchase decision.

If you can, avoid cards with foreign transaction fees.

How Do Credit Card Companies Make Money?

Merchants that accept payment via credit cards typically pay a percentage of the transaction fee to credit card companies. Because credit card companies that run cash reward programs share only a small percentage of these fees with their cardholder, they are able to make a profit from merchant fees.

Other sources of revenue for credit card companies include interest rate, late fees and annual fees. Overall, there are lots of fees associated with these cards that credit card issuers use to recoup the money use to fund their cashback reward programs.

Conclusion

Because not all cashback credit cards are created equal, the right card for you will depend several factors including your spending habits and your ability to pay off your monthly charges in full every month. In general, these cards are a good option if you are able to pay off your monthly bill in full each month.

If you’re unable to do this, the penalties on the outstanding balance will likely exceed your cashback reward, causing you to lose money.

Remember, the APR on these cards is generally on the higher side. Credit card issuers use these cards to increase merchant fees and generate more revenue through other means including interest charges and annual fees.

Compare 0% Purchases Credit Cards

A Guide To 0% Purchase Credit Cards

If you need a loan to make a defined purchased, credit cards are more inexpensive than other types of loans, but only if the card is used correctly. For example, you may need to purchase a new sofa because you moved out on your own for the first time or the old one has to be replaced.

The need to borrow could also stem from the need to pay car insurance for a year to avoid the huge interest rate associated with paying by the month.

For these and other purchases, you can use a pre paid credit card or get 0% purchase credit cards that allow you the benefit of 0 per cent interest free purchases for up to 31 months. However, if you get this wrong, you could end up owing a whole lot of money.

It has been said that debt is like fire, when used well, it is great; when used badly, it can turn into a disaster. As such, before you go ahead and get 0% purchase credit cards, there are a number of things you should be aware of:

Be Wise

To be successful at using this type of loan, you must borrow as little as you need and whenever possible, use your savings instead of borrowing. However, if you are tactically doing it for stoozing and you are financially disciplined, you can borrow higher amounts.

The worst way to use a credit card is using it to fill gaps in your income when ends do not meet each month. This practice could result in constant growth of your loans and could leave you spiraling in debt. If you absolutely need to get a credit card, you should try to lower the costs of your existing debt.

You should resist the urge to use the cards as a supplement for day-to-day spending and you should plan and budget your repayments.

Ensure at Least the Monthly Minimum Repayments are Made

As soon as you are accepted for one of the 0% purchase credit cards, make sure you have a direct debit set up for at least the minimum monthly repayment. Although 0% is being paid, repayments must still be made. If one payment is missed, the 0% deal will be lost. Therefore, the rate will jump and a £12 charge will be added.

Almost clearing your card in full is not good enough; it must be completely cleared to benefit from this deal.

For instance, if you have £2,000 in debt on your credit card and £1,999 has been cleared, the fact that there is a balance outstanding indicates that you will have to pay the monthly interest on the entire amount.

Therefore, if you are able to almost clear your credit card, do all that is possible to completely clear it. This should be done even with 0% purchase credit cards as it is a healthy habit to develop.

Repay the Balance Within the Agreed Upon Period

Even if you go only one month outside the promotional period the interest rate will sky rocket. Therefore, it is important to calculate the amount required for the balance to be cleared within the agreed upon period.

For instance, if you borrow £1200 on a 0% card to be repaid in a year, divide the loan amount by the number of months in the year (£1200/12) to arrive at the £100 monthly repayment and have a direct debit set up to do that.

Although it seems obvious, it should be pointed out that it is tremendously vital to take a note of the end dates of the 0% period. This will ensure the debt is repaid in time or prepare you to make an adjustment for a new Best Balance Transfer contract.

If you fail to switch at the end of the deal, the cost of interest will quickly outweigh the benefit of the card.

Use an Eligibility Calculator

Using an eligibility calculator prior to applying for 0% purchase credit cards will protect your credit score and reveal the cards you will get in all likelihood. Typically, the only method of knowing whether you will be accepted is by applying. However, your credit file is marked by each application.

Using 0% spending eligibility calculator will swiftly reveal your odds of receiving virtually all top 0% purchase credit cards. This will assist you in finding the ones that will most likely to accept your application, thus minimising the number of applications.

Get Your Credit Report

You can take a step further than the eligibility calculator by viewing your credit file. This will provide you with a complete credit health check that includes free Affordability Score, Credit Hit Rate and Credit Report. This type of club is a game changer as it eliminates the mystery in which the credit market has been shrouded for years.

There are some credit cards available which are specifically designed to help you to improve your credit file. Revolutionary tools are used to bring the key components together to provide you with the full picture.

This provides information on boosting your creditworthiness and your chances for acceptance.

By itself, a credit score is not enough to secure a loan because other factors are at play, which is why a number of individuals with perfect scores get rejected. Credit Club provides additional benefits like information on how your credit accounts have been managed and instructions on how your credit profile can be improved.

Watch Out for the ‘Up To’ Catch

It is possible that you might not receive the headline deal for which you applied. This is because some providers give individuals with lesser credit histories fewer months to repay at the 0% than was advertised. For example you could make an application for a 24-month 0% spending contract and your application is accepted but you are only offered a 12-month deal at 0%.

Use the Credit Card Like a Loan By Being Careful

If you exercise caution, your credit card can be used like a loan. Essentially, 0% purchase credit cards can be a cheaper borrowing technique once the card is cleared before the end of the interest-free period.

Some also come with other advantages such as cashback which means you get a percentage back of whatever you spend, a rewards card which will give you rewards from other retailers such as supermarkets, cinema vouchers or air miles and balance transfer credit cards, which will give you an interest free period when transferring the balance from one card to another.

Ensure you only spend the loan amount. To help you with this you should consider ‘hiding’ it in a waterproof bag, putting it in a bowl filled with water and freezing it. This will make it less tempting to use the card again.

The primary distinction between a credit card and a loan is the structured repayments associated with loans. There is a fixed repayment amount each month; therefore the debt is cleared in a set time. To truly imitate the discipline required by a loan, you will have to pay back a fixed amount monthly.

The easiest method of doing this is via a direct debit to ensure the loan is cleared before the card starts to charge interest.

The primary objective is to find the credit card that will provide you with the longest 0% introductory deal and not charge a yearly fee. The ‘go to’ interest rate the card jumps to following the 0% period is listed as well.

However, it is best to pay off these 0% purchase credit cards by the end of the promotional period or transfer the balance of any outstanding debt to another 0% credit card.

Compare Balance Transfer Credit Cards

A Guide To Balance Transfer Credit Cards

Credit card providers are constantly looking to attract customers to their products. One of the ways to reach their goal effectively is to encourage people to transfer credit card debts to another provider on one of their cards. For this transfer to be worthwhile, a credit card provider may offer a special promotion for balance transfers, such as 0% interest for 180 days.

These offers are often valid for a limited time only, but they are created to encourage people to transfer their balance to a specific institution and stay there after the promotion period.

Cards can be used to pay for your goods and services and can also provide a practical way to pay off other credit claims. This operation is known as balance transfer and some cards have been created specifically for this purpose. It is important for credit card holders to familiarise themselves with the operation of balance transfer and it helps save money when used properly.

A balance transfer involves paying a credit card using another credit card. The initial credit card debt will still exist but the balance will transfer from one card to another. The balance of the old card will be zero while the new card will assume the balance of the old card. In many ways, this approach is some form of debt consolidation or short term loan.

Why Make A Balance Transfer?

The main reason that pushes people to consider a balance transfer is when they already have pre paid credit card debt on a card with a high interest rate. Since some cards offer competitive rates only for a limited time (usually 6 to 12 months), the balance transfer is worth it only when you are able to repay your debt during the promotional period.

Imagine that you have a balance of £6,000 on your credit card with a 9.99 percent rate at credit provider A. Credit provider B offers you 0% interest on your balance for a full year, if you transfer your balance to their card. By making the transfer, you avoid paying interest rates on your debt for an entire year.

Transferring your balance is moving the debt of your credit card from one bank to another that offers you a lower interest rate. Thus you reduce the cost of the debt or the remaining time to pay it. For this reason, performing a balance transfer to credit provider B will save you a significant amount in interest in the first year.

Balance Transfer Fee

Credit card providers generally charge a transfer fee, which typically hovers between 1.00 and 5.00 percent of the amount you transfer. Suppose you transfer £10,000 from your old card to your new card and the new provider charges you 1.00 percent transfer fee.

This means that your new balance will be £10,000 plus £100 (£10,000 x 1.00 percent). Depending on the interest charges you are offered, transfer fees may make the offer less attractive.

Interest charges generally increase after the promotion period. A rather significant disadvantage of balance transfer credit cards is that the competitive interest is applicable for a temporary period. Credit providers attract you with a very low rate, but after a limited period rates can rise to 19.99 percent. If you are used to keeping a card balance, you will not have to use this card after paying off the balance transfer.

If you miss a payment or if you cannot pay the balance that has been transferred in full within the promotional period, you will be charged interest on the entire balance not the balance you have to pay back.

Although sometimes a transfer can help you save money, this is not always the case. This is due a variety of reasons, including:

  • Transfers require fees
  • Interest charges increase following the promotion period (or if you miss a payment)
  • If you make purchases on your transfer before you have fully refunded your previous balance, you will be charged interest on these expenses.
  • Your payments will be applied first on new purchases, at the standard interest rate

It is important to establish how the payments you make affect your balance when you think about the transfer. Suppose you transfer £3,000 from one card to another and then make a purchase of £800 followed by a payment of £800. In this case, the payment of £800 will be applied to your transfer.

Unfortunately, this means that you will be charged the full interest on the new purchases instead of the promotional rate. Additionally, you will be unable to repay this amount as long as there is a transferred to your card. If your interest rate is 19.99 percent, your new purchase will cost you £159.92 in interest during the year if you do not pay it back quickly.

Key Considerations

Credit providers that offer this service often work with fixed interest rates ranging from 7.5 to 24 percent. These rates are low compared to the average effective rate applicable to other customers. You can use online calculators to know how much less you could pay for your debt.

Another advantage of debt transfer is that, in some cases, you reduce the payment terms. As a result, you complete paying your credit earlier than planned and at a lower cost. The third objective of the transfer is to consolidate the debts. This means combining all pending balances of cards in a single plastic. In turn, you have a single debt, repayment period and can lower the interest on your debts in total.

When it comes to lowering the requirements to transfer the debt from one bank to another, the most important requirement to access this service is that you have an excellent credit history. In addition, you should be up to date with your payments on the cards whose balance you wish to transfer.

You also need the new banking institution to approve your card. Once the credit has been approved, you must notify the credit provider that you want to transfer your debt. In turn, the provider will process the transfer upon receiving the request. It is recommended that you first ask the bank about the possibilities.

Using A Balance Transfer Credit Card Smartly

Transfers can be a good idea if you use them properly. Suppose you have made a big purchase and it will take some time to pay it back. A transfer to a card that offers a competitive interest rate can be a good idea.

On the other hand, if you plan to keep a balance even after the end of the promotional period, it would be more advantageous to keep your old card or consider a low interest card.

Transfer Example

john has a card with a £16,000 balance and a 14 percent interest rate. He plans to transfer her balance to a new card. This new card charges 3.00 percent transfer fee and offers a promotional interest rate of 12 months at 0 percent.

After the promotional period the interest rate increases to 20 percent. Suppose Ronald decides to make the transfer and finds it with a balance of £16,000 for 3 years. Has the transfer been worth it?

In the first year, a balance transfer will have been very beneficial for John. Aside from the transfer fee, he would have saved on his interest charges.

 

How to Use a Credit Card for Interest-Free Purchases

There are credit cards that offer the cheapest way to buy something when you cannot afford to pay for it in one go. Here is a guide on how to borrow interest-free with the use of a 0% purchases card and spread the cost over a number of months.

How does a credit card with 0% on purchases work?

You can make use of any credit card to spend, but unless you pay off everything that you buy each month, you will normally have to pay for interest.

Cards that offer 0% on purchases charge customers with no interest at all for several months after you receive the card. This is known as an interest-free period.

For example, a credit card with a 24-month interest-free period means that you will not have to pay interest on what you buy using your card for 24 months as long as you make the minimum payment every month. The longest 0% deals can last for more than two years.

Why get a 0% deal?

You can make use of a 0% purchases card to borrow for free.

You can divide the cost of a large purchase over several months. As long as you pay it back before the end of the interest-free period and do not break the terms of the card, you will not be required to pay any interest or fees at all.

How much does a purchases card cost?

If you pay back what you borrowed and used the card responsibly, you can borrow interest-free.

However, unless you pay off the outstanding balance in full before the end of the 0% period, you will begin to be charged interest each month.

You will also have to dodge the other fees and charges that can be associated with credit cards. Learn how to dodge credit card charges to make sure you get your card for free.

Make sure that you do not spend beyond your means because a 0% purchases card does not offer you free money – you will eventually have to pay off every penny you borrow.

How to pick a 0% purchases credit card

The best interest-free purchases credit card is the deal which offers you 0% for the longest period, allowing you more time to pay off the balance without being charged interest.

Each card also has a representative APR, which is a guideline of the interest rate they will charge after the 0% period ends.

You should only base your choice on this rate if you plan to carry on using the card after the end of the interest-free period.

How to manage your card

Always pay at least the minimum amount

Your credit card statement will show you the minimum amount you need to pay each month and the date that you have to pay it by.

A late payment charge which costs around £12 will be charged to you if you miss a payment, and it will show on your credit record too.

Your provider could also end the 0% purchases deal on your card and start to charge you interest on what you owe.

How much is the minimum payment?

At least 1% of the amount that you owe, plus charges and interest if you do not have a 0% deal. There will also be a minimum amount of at least £5.

Note the date the deal ends

Check on how long your card will be interest-free by determining how many months your deal lasts and then count forward from the date that your application is accepted.

Remember this date when you work out how you will be able to repay the card, and schedule a reminder on your calendar or phone to off the outstanding balance and close your account at the end of the period.

Try to clear the balance before the 0% deal ends

If you want to dodge paying any interest at all, you will be required to pay off the full balance by the end of the interest-free period.

The easiest way to do this is by dividing the balance equally. Divide your total outstanding balance by the number of interest-free months to determine how much to pay every month. For example, to pay off a £3,000 purchase over 30 months, you would need to repay £100 per month.You could also make only the minimum payments every month and then pay off the rest just before the end of the interest-free period. Make sure that you save up enough to repay it by the end since you will have to begin paying interest otherwise. You could even save this money in a high-interest savings account and earn a profit.

What to do after the interest-free period

When the period ends, your card provider will begin to charge you interest every month if you still have a balance that is due on your card.

If you still want to buy things with a credit card, it is worth finding a new card that offers a lower interest rate, or even a new 0% purchases card.

You can compare credit cards and APR here.

What if there is still a balance left?

If you do not succeed to repay the entire balance before the end of the 0% period, you could make use of a balance transfer to move it to a new card with a 0% period.

Alternatively, you could avail of a low rate credit card instead of a 0% purchases card. Although these do charge you for interest, they offer low rates that can continue for a longer period, so they can work out cheaper if you need years to pay off your card.

 

Compare Credit Card Deals

A Guide To Credit Cards

A credit card is a flexible and secure way of making payment for goods bought or service given. The cardholder is expected to provide the credit card before the purchase is completed.

The cards are usually issued by the bank where the account holder is granted a revolving account.

As a cardholder, the revolving account allows you to enjoy making payments and earning credit extensions via the credit card. Every faithful cardholder is entitled to enjoy flexible purchases and unsecured loans from the bank.

What Are The Features Of The Credit Card?

  • The card allows you to enjoy convenient credits as you also track your expenses.
  • The credit card is accepted at major commercial establishments around the globe such as shopping centres, hotels, and fuel stations.
  • Some cards come with reward schemes where you are issued with bonus points that you can redeem for goods or service.
  • The credit card is the best alternative to obtaining secured loans as you don’t need collateral to enjoy a credit extension.

What Are The Different Types Of Credit Cards?

When you compare credit cards, their differences depend on the cardholder. There are three major options and they are:

  1. Secured Credit Card: This card is secured by an owner of a deposit account. To secure the card, you are expected to make cash deposits of 100-200% of the credit that you desire. The deposit is secured in a specific savings account. You’ll still be required to make regular payments for the credit issued.
  2. Business Credit Card: This card is issued to a business owner in the name of the enterprise. Typically, you can only use the card for business purposes and not personal reasons. The cards are offered by most credit card issuers such as Visa and MasterCard.
  3. Prepaid credit card: In essence, this card is not an actual credit card as it doesn’t offer you credit advantages. The pre paid credit cards allow you to only spend the money loaded on them. The advantage is that you can use the card anywhere where a credit card is accepted.

How Does A Credit Card Work?

The credit card allows you to spend money borrowed. Essentially, you have the freedom to spend within your pre-set limit. The limit may be a few hundred or thousands, depending on your credit score.

Your spending power depends on how confident the card issuer is with respect to your ability to pay the loan. If you pay the bill within the expected time, then you are not expected to pay interests.

But, if you delay in paying the borrowed money, you’ll have to pay extra charges. The interests are also backdated. For example, if you purchased goods at the beginning of the month, then you’ll be charged interests for the whole month.

It’s not advisable to use the credit card at the cash machine when making a withdrawal as this translates to extra charges of up to 4%. If you compare credit cards from different issuers, the interest rates may slightly differ.

How Do You Become Suitable for the Credit Card?

There are a few obligations that you must comply with to be eligible for a credit card and a loan extension. First, you must be aged 18 and above to be issued with a credit card. There are other credit card providers who will insist on a minimum age of 21.

Secondly, the card issuer will have to assess your eligibility for the card when you apply. The bank will go through the credit reference records and evaluate your credit score.

If you have an impressive credit rating, then chances are high that your credit card application will be successful.

Lastly, after securing the card, you are expected to pay the loan promptly to enjoy future credits. You are supposed to pay the amount even during the interest-free month.

This protects you from damaging your credit score. Nonetheless, there are no such obligations when using the prepaid credit cards. This is because you use your own loaded money.

What are the Advantages of Using a Credit Card?

Usually, the credit card offers you the following benefits:

  • Flexible payments: A credit card is accepted in more places than the charged cards. The cards are easy to carry, and their usage is straightforward. There are no technicalities when using the credit card thus you can enjoy a flexible application.
  • Safety: When compared to carrying cash, a credit card is the safer option. Even if the card is stolen or lost, you don’t lose your money. All you need to do is to notify your bank, and they will have the card cancelled before someone else uses it. After this, you will go back to the bank and ask for a new credit card.
  • Purchase Now and Pay Later: If you don’t have the cash to pay for a given good or service, and you need it, the credit card allows you to make the purchase through borrowed money and get to pay later. It’s a realistic way of obtaining unsecured loans from your bank.
  • Financial protection: A credit card protects you from overspending. With the card, you are not allowed to exceed your pre-set limit. The card also protects you from making a wrong purchase. For instance, if you buy a faulty electronic and the seller refuses to refund you the money paid, the credit card issuer is obliged to make the reimbursement.
  • Freebies: There are additional benefits that come with the credit card in form of reward points, cash back, and air miles. They are meant to encourage you to use the credit card often when making payments.

What are the Concerns When Using A Credit Card?

There are three common concerns attached to the use of the credit card, including:

  • High Interest and Additional Charges: If you are unable to pay the borrowed money within the right time, you will be charged higher interests. Unlike the secured loans where the interests are lower, and you enjoy a long time of paying back, the credit card charges are usually higher, and you are expected to pay monthly. Other than paying higher interests on late payments, you get charged extra for surpassing your credit limit. There are also additional charges when withdrawing cash through the cash machine.
  • Pre-authorization charges: If you use your credit card in places like a car rental firm or a hotel, the firm may charge you extra for a service resulting in you surpassing your credit limit.
  • Costly to use overseas: This depends on the credit card that you possess. Some cards are expensive when used in foreign countries as you encounter higher transaction charges. Nevertheless, there are cards that are specifically designed for travellers, and you can use them when going abroad.

Credit Card Rating

If you are one those who are switching cards or have been applying for numerous cards, it is important to remember that this may affect your credit rating.

Application or rejection for a new credit card of the card is recorded on your credit file.

New providers checking your file may often conclude that you either have too many cards already or have takers who are interested in lending you a credit card. To know more about credit card rating, look as Being refused credit in Credit.

In addition, if you want to know about the different types of borrowing or are finding it difficult to use your credit card in Northern Ireland and England, Wales, or Scotland, look up Help with debt.

What Are The Benefits Of Using Credit Cards?

One of the greatest benefits when using a credit card is that it provides your extra protection when paying for goods and services.

For instance, if things go wrong when paying for goods and services using your credit card, you can make a claim against the credit card company instead of the company that sold services or goods to you.

However, when making a claim there are certain factors to be considered;

  • The services and goods your purchased should be above £100 and below £25,000.
  • The claim made can be more useful only if the supplier or trader has no money to reimburse or has gone out of stock.
  • The credit card provider should be kept informed about the difficulties you are having with a supplier over services of faulty goods provided by the trader or supplier.
  • If the credit card company does not accept any responsibility, a complaint to the Financial Ombudsman Service can be raised.

Furthermore, if you have problems regarding the goods and services purchased on your credit card, you can seek guidance from an experienced adviser at Citizen Advice Bureau. To know more details regarding the nearby CAB, including even those that can provide advice by email, check nearest CAB online.

Tips to Avoid Credit Card Fraud

One of the greatest problems experienced by credit card holders is the credit card fraud.  To protect your card and use it safely, it is your responsibility to report to the credit card provider as soon as you find that your card is stolen, or details of the card have been copied.

  • Always safeguard your PIN. The PIN (personal identification number) is basically the security number that is provided to you when you are issued a credit card. The PIN will be asked for whenever you use your credit card to withdraw cash from a cash machine (ATM) or when you buy goods using the card.
  • It is, therefore, important that you do not share your PIN with anyone. However, if you discover that your PIN number is also known by someone else, it is highly recommended that you inform your card provider immediately. Failing to inform the provider can cause you to pay the money for another person who used your credit card.
  • When using your credit card for paying in restaurants, shops, market or anywhere else, always remember to keep your card in sight. If you fail to see what is happening with your card always or if your card remains out of your sight, information in the magnetic stripe on the reverse side of the card will be copied and re- used illegally. In such cases, contacting and informing your card provider immediately is advisable.
  • Always check your statements every month. This will ensure that the amount debited from your card is correct and allow you to contact your card provider about spending that you do not recognize.
  • Destroy all your payment receipts. Since keeping payment recipes can divulge details regarding your credit card, tearing them in small pieces will prevent anyone from stealing your details.
  • When purchasing online, always use secure websites, Always look for a padlock that is located in the top of the internet page, near the website address. Paying payments online to a secure website is crucial to prevent credit card fault.
  • Use an online verification scheme. Card providers usually recommend using an online verification scheme, verified by MasterCard Secure Code or Visa. Setting up an additional password which is verified by your card provider before making a payment helps provide extra security to the card holder. To know more about online verification scheme, visit www.shopsafeonline.org.uk.
  • One of the crucial factors to avoid credit card misuse is to report stolen or lost card immediately. To contact your card provider, check your provider’s website or look up your last credit card statement for their contact number. Additionally, if have card protection insurance, it is important that you inform your insurance company about the theft.

Making A Complaint To Your Card Provider

If you are unhappy with the services provided by credit card provider, raise a complaint to them. At first, raise a company to the credit card company and allow them to set things right.

However, if you are still dissatisfied, you can further complain to the Financial Ombudsman Service.

What Should You Do If You Are Struggling To Make Credit Card Bill?

If you are finding it difficult to pay your credit bill, it is always best to contact your provider immediately. In doing so, they might help you by asking you to pay a reduced amount temporarily.

In addition, asking them to freeze your interest will not only prevent your credit limit to increase at this stage, but also keep you away from getting into more debt.

Taking guidance from an adviser at Citizen Advice bureau regarding other debts can help sort out your problems and help claim benefits. To contact the nearest CAB for advice, check nearest CAB online.

Conclusion

The introduction of the credit cards has made it easy for everyone who is looking for a way to make secure and convenient payments.

If you are a person who travels a lot, especially in foreign lands, you need a flexible way of making payments and enjoy credit provisions. You should apply for a credit card today and maintain a good credit rating.