Independent offers "beginner's guide" to credit cards

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Independent offers "beginner's guide" to credit cards

Mon 18th Aug 2008

A guide to acquiring and using credit cards was published this weekend by the Independent newspaper.

Consumers are advised to use comparison websites to compare deals against each other and consider their particular circumstances when choosing a card.

Those seeking to make a single expensive purchase, such as a television, should use a card with the longest zero per cent period for transactions.

Anyone looking to transfer a balance from an existing card will want one with a long interest-free balance transfer period.

A consumer who intends to pay off the balance in full every month should look for one which offers rewards such as air miles or cashback.

If a borrower thinks they will have balance on the card for a long time, they should find a card with the lowest annual percentage rate.

In addition, people are warned that drawing cash on a credit card incurs higher interest and a fee.

A recent article in the Telegraph suggested considering switching credit cards for the best deal.

It cited research from MoneyExpert.com which found that more than 72 cards now charge standard rates of 19.9 per cent or more, with some charging more than 40 per cent.

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