Despite the prevailing economic conditions in the UK there are still various credit card deals that are currently on offer. However, if you are in the market for a new card, perhaps look at the entire offering before signing on the dotted line. That is because some cards will benefit you more than others, dependent upon your individual circumstances.
Perhaps you use your credit card for all your monthly day-to-day purchases, paying off the entire balance at the end of each month without ever incurring an interest charge. If so, a high-returning loyalty card could be the best option for you; one that offers points that you can exchange for benefits such as air miles, or perhaps even cashback.
However, if you choose that option, you must maintain the discipline of paying off the entire balance each month. But, if you can afford to, there is another potential benefit that you could accrue in addition to the loyalty points. By earmarking the cash that you will use to pay your credit card bill and depositing it in an interest-bearing account, you could earn a tidy sum of interest over the year. That way you win twice; scoring high on loyalty points and pocketing a nice interest bonus.
And, if you wish to make a major purchase in the near future but cannot pay off the total cost for a number of months, then look at credit cards that offer 0% interest on purchases over six months. In addition to spreading the cost of your purchase, you may also be able to earn loyalty points, which is clearly a double bonus.
Another card option is a 0% transfer balance deal. If you have a significant balance on another card on which you are paying, a hefty rate of interest transferring to a 0% interest rate could be the ideal solution for you. A 0% credit card balance transfer offers two main benefits. Firstly, the monthly payments will be quite small throughout the promotional period. Secondly, because the minimum repayment is so small, you will be able to repay more of the actual capital amount rather than just covering the interest charge each month.
Of course, not all the benefits mentioned are mutually exclusive. Many credit card companies offer a mix and match approach and it may be that you find
credit cards that offer a 0% transfer balance deal, 0% on purchases for a promotional period, and also include a loyalty scheme! Either way, there are many benefits to owning a credit card; it is just a matter of choosing the right one.
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Adam Singleton writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
