Credit Cards
About Credit Card
Credit card basics
Type of credit card:
* 0 percent Balance- Transfer credit card
Pros
These cards let you move a balance from elsewhere on which you are paying high interest across to a card where you don’t have to pay interest on it at all for a set period. The longest at the moment lasts thirty- six months. If you are paying interest on a credit card debt you should do this asap.
Cons
As with 0 percent purchase cards, you must make minimum repayments or face losing the 0 percent deal. Make sure you do it on time or you will be hit by an extra-high APR after the deal is over.
Balance – transfer cards often come with a fee, usually calculated as a percentage of your outstanding debt. Some have no fees but a shorter 0 percent period. If you are confident you can pay down your debt relatively quickly then these are the best.
* 0 percent money – transfer credit card
Pros
They let you transfer cash from the card into your bank account without paying interest for a set period of time. Cons Get the card Provider to transfer the money into your bank. Do not take the cash off the card yourself, or you will pay interest. As above keep an eye on the 0 percent deal length and don’t busy it to avoid interest.
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* Cashback or airline Miles credit card
Pros
You will earn rewards every time you spend, and some of those available to people with good credit scores are really generous.
Cons
There is no point in having a points card if you are not likely to be able to pay off all the balance because any benefit will be canceled out in interest charge.
*Bad credit card
Pros
If you have a rubbish credit score you might struggle to get a card, but getting a card is one of the best ways to build up your score by showing you can borrow small amounts and pay them back on time.
One solution is that the credit card that is marketed specifically at those who have a poor score, for example, the marbles card or cards by aqua.
Cons
The APRs can be unbelievable, as much as 59.9 percent, so get this only if you really need to improve your debit score and are supremely confident that you can pay off your balance in full every month.