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CREDIT
CARD - Apply for a new credit card whether you are looking to
transfer the balance of your existing credit card or simply applying
for more credit from a new lender |
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Which Credit Card Do I Apply For?  Standard - Visa and MasterCard are
two of the common credit cards available.Platinum and Gold cards - these are usually available for people with higher levels of income, and have benefits attached to them. Charity and Affinity Cards - these operate in the same way as standard credit cards but a small percentage of what you spend is donated to the charity to which the card is connected. Loyalty Cards - These cards tend to offer incentives such as cash bonuses, AIR MILES, points and other discounts. PROS Credit cards are international and can be used all over the World, wherever you see the logo on your card. Credit cards can provide you with instant access to cash, (for which there is usually a fee payable). Goods can be purchased quickly and easily, in person, over the phone, or on-line! Some companies offer insurance on your purchases, and can protect your goods in the event of loss or theft. They can also provide you with travel insurance. CONS Credit cards tend to be expensive and are hard to control. It is advisable to keep your receipts of purchases made. Mistakes do happen and you should cross check your receipts with your monthly statement. Any discrepancies should be reported immediately to the company. Other forms of borrowing can prove cheaper, e.g. a personal loan or extension of your existing mortgage. These options should be considered before applying for a credit card. Purchases made abroad may not appear on your statement for a few months and it is therefore difficult to determine whether or not they have been debited to your account. RATES AND FEES Credit cards attract annual fees and interest charges. Interest rates tend to be high and vary between companies. Some companies provide interest free periods. Other companies have penalty payments for late or returned payments or if you exceed your credit limit.  REPAYMENT OPTIONSMost credit card companies insist on you repaying the minimum repayment. This can be found on your monthly statement. Alternatively, they request that you repay a percentage of the outstanding balance, for example, 3-5%. DECIDING WHICH CARD In deciding which card is the best for you, you will need to assess how you use the card. For example, if you use the card for convenience shopping and would want to repay the full balance at the end of the month, then cards that offer a long interest free period with no annual fee could prove more appropriate. If you use the card for ongoing borrowing, and intend to pay off the minimum amount every month, then a shorter interest free period with lower rates might suit you better. If you travel frequently, it may be worth considering a card, which allows you to pay your bills via direct debit.
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