Save Money with a Credit Card
Save money with a credit card? It seems like a contradiction, doesn't it, especially when credit cards and the unreasonable way that some individuals use them have been receiving bad press since credit has been made easy to get. And yes, credit has become far too easy these days, but with intelligent planning and prudent spending, individuals can actually save money with a credit card.
There are a few ways of achieving savings with sensible credit card use.
Cash back credit card ? some credit cards UK offer cashback at the end of any given 12-month period. This facility is ideal for individuals who pay the entire balance each month. Two advantages of a cash back credit card are evident: one, the sum that users receive at the end of the year serves like a reward for using the card and two, if the full balance outstanding is paid every month, the interest rate ? the SVR ? is not charged.
Credit card balance transfer ? this is another way that card users can save money with a credit card. For instance, an individual who is unable to pay off the full balance each month runs up a total current balance of £3,000.00. The card charges a standard variable rate of 12.5% per annum. That means the card holder is paying something like £375.00 a year in interest alone; add this amount to the minimum amount that also has to be paid each month.
To save money with a credit card, what the card holder needs to do is find a credit card company that offers 0% interest rate on balance transfers for a promotional period of between 6 and 9 months. The savings here is evident: instead of paying interest on unpaid balances, the card holder actually enjoys a grace period of up to 9 months on the credit amount of £3,000.00, thus eliminating the feeling of being smothered by a high interest rate on the credit card debt.
Low-interest, no annual fee credit card ? this is another method of saving money with a credit card. Major credit card companies all play in a fiercely competitive field. One way for these companies to outsmart the competition is to lower the interest rates they impose on unpaid balances or to eliminate the annual membership fee. A significant percentage of credit cards UK now have no annual fee. Some of them also integrate a two-tier interest rate ? one for the PIR (purchase interest rate) and the BTIR (balance transfer interest rate) so that credit card users are able to distinguish one rate from the other.
If individuals are just finishing university and are about to shop for a credit card UK, they can look on the Internet for some good deals. Some companies will specifically cater for new applicants and may offer lower introductory rates. A great place to compare credit cards is moneyeverything.com ? the largest source of all types of UK loans and credit cards.
The wonderful thing about moneyeverything.com is that they have already done the research for potential applicants, comparing the different providers and can therefore share their knowledge and expertise about the best deals available online. With just a click of the mouse, the online shopper is welcomed to a wide and open field of providers, enabling them to selectively shop and compare credit card packages with their spending patterns ensuring the best cards and matched to individuals.