Credit Cards aren’t all bad, here’s some good things about credit cards
Posted May 26th, 2009 Credit cards constitute a significant proportion of the £1.5 trillion owed by the UK, and while the credit crunch has significantly altered the relationship we have with our credit cards, they still provide a great deal of utility.
Here’s a list of some of the ways we can use credit cards to help us.
- Cash flow management – with your credit card you’re not bound to the tyranny of pay cycles; you can spend extra money in the months where you need it and make up for the shortfall in your cashflow in later months
- Internet shopping – Credit cards are vital for online shopping, although some sites are starting to accept Visa Electron, there are still many sites that don’t. If you want complete freedom of purchase online, you’ll need a credit card. You might want to consider getting a second credit card for online purchases, either with a low limit or prepaid, so that if it gets blocked due to fraud, you have another credit card handy.
- Merchant protection – many credit cards offer merchant protection; when you buy something online that doesn’t do what it says on the tin, you have the option to ask your credit card company for a chargeback; where the credit card company essentially files against the merchant and attempts to get the money back. Please note that this does not come with every card, so make sure you read your Ts & Cs when you make a purchase.
- International travel – while the exchange rates might be lousy and the rates high, from a safety perspective, you can’t beat a credit card. If you lose your card, or have your money stolen, then you will most likely retain all your money. If you lose cash, there’s no way of getting it back, if you lose travellers cheques there is some recourse, but it’s time consuming. A credit card is highly recommended when you go travelling.
- Loyalty schemes – Credit cards come with a wide variety of loyalty schemes, from air miles to petrol, to shopping. While the rewards are generally fairly small, if you’re clever you usually get some pretty good deals out of these loyalty scheme, you just need to be careful to pick the right scheme for you.
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As much as we think of them as evil, credit cards are an effective way of managing your money. As long as you stay on top of the balance, and don’t get in over your head, a credit card can become a valuable tool.
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Comparison of Top 10 Credit Card Offers
| Credit Card | Card Details | Interest Rate | Cash Advance Rate | Balance Transfer Rate | Annual fee | Interest free days | ||
|---|---|---|---|---|---|---|---|---|
 Halifax All in One Credit Card |
The Halifax All in One credit card offers a great introductory rate, and is perfect for saving you money now as well as in the future. | 15.9% APR | 27.95% p.a. (variable) | 0% for 9 months | No Annual Fee | 59 Days interest free |
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 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
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16.6% APR (variable) | 27.9% p.a. (variable) | 0% for 16 Months (2.98% fee on balance transfers) | No Annual Fee | 50 days on card purchases |
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 Capital One Classic Visa |
This card is designed for people with bad credit ratings, this is why the rate is quite high. |
Typical 34.9% APR variable | 34.9% APR | 34.9% APR | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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As well as earning Flying Club miles which you can spend on brilliant rewards like flights, upgrades, car hire and more, a Virgin Atlantic Credit Card gives you up to 46 days interest free on card purchases. |
17.9% APR typical rate | 20.9% p.a. (variable) | 0% for 6 months (2% handling fee) | No Annual Fee | Up to 46 days on card purchases only. |
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The Virgin Prepaid MasterCard from Virgin Money is a prepaid Mastercard that you can add funds to, and use these funds for normal purchases. |
N/A | N/A | N/A | N/A | N/A |
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5% cashback on purchases in your first three months (up to £4,000 of spend). Thereafter, earn 0.5% on the first £3,500, 1% on £3,501 to £10,000, and 1.5% after £10,001. |
18.9% p.a. | 27.9% p.a. | 18.9% p.a | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. Representative 39.9% APR (variable) |
Representative 39.9% APR (variable) | 39.9% | N/A | No Annual Fee | Up to 56 days on card purchases only |
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The award winning prepaid card with no credit check or bank account needed. | Funds in your Account will not earn interest | Prepaid only - N/A | Prepaid only - N/A | £59.40 p.a. (£4.95/month) | Prepaid only - N/A |
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