Have you decided to apply for credit cards? That's nice. No doubt these cards are useful and convenient way to cover services in daily life. It offers you finance flexibility if used properly. One can use it for every day purchases, for business dealings, for managing debt problems as well as for charity purposes. It can also supply abroad in foreign currencies through on the internet network facilities. But before applying for credit cards you must consider certain factors particularly if you're living in UK. As UK has probably the most competitive credit card market in the planet so searching a right card that best meets your needs is actually a time consuming process. So must bear in mind some special tips while choosing a best charge card. Info policy available with each charge card can also serve as a manual to compare between different cards. 1- Status Of an IndividualChoosing credit cards depends upon individual status. It means whether they're a student, a businessman, a center class man, a retired person or perhaps a widow. Different types suit different individuals. Standard credit card is available for everybody over 18 years while premium credit card offers comparatively higher credit with lower rates of interest and some extra benefits. So you can choose credit cards accordingly to your priorities. 2- Reason For ApplyingWhy are you applying for credit cards? This question matters a lot. Could it be for managing your financial pressure or even for business dealings. Do you want to enjoy special deals and incentives available with it or you need to use it for emergency situations. Whether you need to reduce interest payment on other existing charge card through balance transfer or want in order to donate for charity programs. Ask these questions to yourself before trying to get a card. If you are in a position to clear the bill in full every month then annual fee and length of interest free period tend to be more important factors than interest rate. But if you would like some cash advances to manage financial burden then you definitely must consider fees for cash advances and related rate of interest (higher for cash advances). 3- Rates of interest And Interest Free PeriodYou must possess a complete detail of interest rates alongwith more information about length of interest free time period, interest calculation method, introductory low prices offer and APR. APR is apr which expresses the cost of using charge card. Interest rates can also be increased or reduced with time. Monthly statement shows the current rate of interest for respective card. In case of an increase in rate of interest advance warning is given while in the event of decrease in interest rate customer is informed within four weeks. 4- Rewards And IncentivesRewards and incentives may also be another attraction to apply for credit cards. It includes cash backs, voucher strategies, price promise deal, travel insurance and get protection insurance etc. In cash back offer minimum percentage of cash is given back on spending certain amount. In voucher schemes vouchers or certain quantity of points are given to you which may be redeemed for future rewards. Price promise cover ensures refund in the event of difference in prices if you bought a product on higher price and but later on you found it on cheaper price elsewhere. Through travel insurance you will find assistance in the event of flight delay, lost of luggage and injury during travelling. While purchase protection insurance covers purchases in the event of damage or loss for certain period of time. 5- Paymant Structure or Repayment PolicyPayment structure also matters a great deal when taking final decision in this particular regard. You must be fully aware of specified ways to repay balance on credit card account. Various ways of payment include cash payment, utilizing cheques or debit cards, direct debit choice, telephone or internet banking etc. Most of the companies set upward monthly minimum repayment percentage on your total balance that you have to pay. This percentage can be a set amount or 2% to 4% associated with total balance. Knowing payment structure is essential as it is not a free money and you need to repay it through specified procedure to prevent any complexity. 6- Annual FeesYou also needs to consider annual fees (if exists), as some companies charge annual costs for holding their card which may also be paid in twelve monthly installments. 7- On the internet Transaction FacilityCredit card network is an additional factor to ponder over. Card company must offer 24 hour online transactions facility and should have a strong credit dealing network in your country and abroad as well which means you would have no problem in using charge card when and where you need this. 8- Default ChargesDefault charges include extra payment in the event of violating terms and conditions. Any kind of violation including past due payments or exceeding credit limit can result in the imposition of default charges. 9- Requisites for Card QualificationQualifying for credit cards depends upon certain factors including verification of the personal information provided in application type, previous credit history or credit score (if exists), your overall ability to repay the balance and above all your borrowing limit. If you get qualified then much better otherwise some companies also offer appeal procedure in the event of disqualification. So you can avail this opportunity too for becoming qualified for credit cards. 10- Responsibility And ProtectionFinal and most significant thing to remember is that credit money is really a responsibility not a right. Credit greeting card offers many potential benefits. It's a flexible method of borrowing money in short time to handle any financial pressure. But if you use it because free money without moderating your spending habits additionally, it may become a liability for you. It can damage your credit rating and will set you back much more than the actual stability. So be responsible in your spending ways rather than ending up in serious debt difficulties. In case of additional card owner, the main account holder who signed the agreement will result in paying off. Protect your card against any fraud or theft and take advantage of Pin or Chip facility which is available all over the world to ensure balance security. In fact UK is among the first countries to provide this service. In case of disable persons chip will get signature card. So safe your PIN NUMBER and always use secure websites whilst shopping online. Visit http: //www. pinandchip. co. uk with regard to further detail on pin and nick. Debit CardsBut unfortunately if you don't get qualified for credit cards then debit card could be an additional better choice. Popularity of debit card can be gauged by the truth that about 41 million (about 84%) individuals in UK are debit card holders while the amount of credit or other charge card holders is about 31 million (about 66%). Debit card is the best option for cash withdrawal without any additional charges while credit card issuers charge withdrawal fees around 2. 5%. Most of the charge cards don't provide any interest-free period with regard to cash transactions and incur additional interest and fees which provides debit cards an edge over charge card in such circumstances.
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