Without a doubt, there are multiple options available in the market when it comes to selecting the best credit card to suit one’s needs. That said, while one may be tempted to go for the first card provider that comes your way, it is always good to first try and compare credit cards before opting for one. With a myriad of options available, it can be a daunting task choosing the one that suits your budget and your financial needs. That is why it is so important to know what to look for while shopping around.
Choosing a credit card often depends on your budget, your credit score, and the rationale behind it. Some of the reasons for choosing a credit card may be; building your credit history, spreading the cost of purchase, to cover for an unexpected expense, or to settle future expenses like those on the my net research website.
Before you consider applying for a credit card, you should always remember that credit cards have a high annual percentage rate of charge (APR) which makes them a very expensive way to borrow if you can't pay the balance every month. So, while credit cards can be very useful when you want to make purchases, you should not use them to take care of your long term debts even if you are desperately seeking what to do about bailiffs.
In this write-up, we will help you find the best credit cards in the UK available to you.
Credit Building cards
Are you on a low credit score? If so, you can employ the help of a credit building card to build your credit history. Credit building cards have low credit limits and high-interest rates because they are designed for people who are of high risk. To get a better credit offer in the future, you should ensure to pay your bills and sort your debts on time to show how reliable you are to lenders.
Rewards Cards
Rewards cards help you get rewards like travel miles, discounts from stores, or even cashback when you use them. The rewards card most time comes with an annual fee and high-interest rates. When selecting reward cards, you must ensure that the benefits outweigh the cost. To get approved for the reward card, you need a good credit score.
Balance Transfer Cards
Like the Scottish trust deeds, balance transfer cards are a great debt management strategy. Maybe you already have an existing credit card with a high-interest rate, and you would love to reduce the amount you pay on interest. If so, you can achieve this by moving your existing card debt to a balance transfer card usually for a small fee. The balance transfer card offers you a low interest or nearly 0% interest rate for some time. To get qualified for a balance transfer card, you may need to have a very high credit score.
The Purchase Cards
Do you need to spread the cost of a big purchase? Then the purchase cards might be the best for you. The purchase cards usually have an interest free period, which can make them a cheap way to borrow. To get qualified for the purchase cards, you will need to meet up with the terms and the minimum payments to keep the 0% interest rate. It is best if you can settle the balance before your interest-free period expires. Just like the other types of cards, you will also need to have a good credit score to qualify for the purchase cards.
The balance transfer cards and purchase cards
This type of card offers you the benefit of both a balance transfer card and a purchase card altogether. This type of card will help you spread the cost of large purchases while at the same time, reduce the amount of interest you pay on your balance with a fee. If you have a good credit score and plan to pay off your credit cards soon, then this is the best option for you
Travel credit cards
The travel credit card is useful if you plan to go overseas. Booking a hotel, for instance, from your credit card when you travel overseas can attract a lot of fees. At the same time, taking cash with you when you travel overseas is risky and inconvenient. The travel and currency credit card is, therefore, the best option for you to use in another country.
The money transfer credit card
This type of card allows you to borrow some amount of cash. You have the option to transfer money from the card directly into your account with a small fee. The money transfer credit cards are used to help to clear bank overdrafts. Monet transfer cards offer a 0% rate period. To get qualified for these cards, you may need to have a good credit score.
Conclusion
When you want to choose the best credit cards, your choice should be based on your needs, your financial goal and the option suitable for you. Understanding the function of each credit card will make you get the best credit card in the UK.