Ballyclare Gazette - Features - Getting the Most from Credit Cards

Features

Getting the Most from Credit Cards

Tuesday, 14 December 2010

There are a wide variety of credit cards available to consumers so you can easily choose a credit card on the basis of what you want to get out of it. While all cards will offer you the chance to borrow money and spend it later, it is the difference in rates, rewards and ethics that will ultimately determine your choice.

Gradually, the understanding that credit cards are not simply debt is spreading. Used in the correct way, the perks that accompany various credit cards are being taken advantage of without it costing the customer any extra money.

Reward credit cards offer points that are accumulated as you spend. There are a number of ways in which you can then take advantage of these points. Discounts in shops, rebates on petrol and entertainment rewards are all available depending on the company offering the card. These types of credit cards work for customers who can successfully pay back their monthly expenditure in full, thereby enjoying the add-ons without any extra cost.

It is a similar story for credit cards that offer cash back, extended warranties and other incentives. Most electrical products come with year-long warranties as standard. Extending this warranty, though, may carry an additional price tag. Some credit cards offer extended warranties for no cost, assuming that you use that card to pay for the product.

Customers who regularly travel can build up air mile credits on the basis of their spending if they use a travel credit card. In addition to contributing towards the cost of travelling in this way, once you are abroad there are specific credit cards that can enable customers to obtain better exchange rates, as well as offering no additional costs for spending or withdrawing money from ATMs.

Although most credit card choices are made on the basis of the consumer calculating the best deal for themselves, it is possible to choose a card that supports others who are less fortunate. These ethical and charity credit cards operate in the following way. The credit card provider will ask users to choose, from a list of charities or ethical organisations, the one they would like to support and a one-off donation will be made to that charity. After this initial donation, each time you use your ethical card the company will make a further donation based on a percentage of the cost of the purchase you have made.

For customers who wish to lower their cost on expensive purchases interest free credit cards, or even low interest credit cards, enable them to do so. However, it is important to remember that the period of time when the interest is either low, or non-existent, is fixed and there will probably be an increase in the rate after that period.

While the type of card chosen is dependent on the individual, there are issues regarding credit cards that are of significance to all customers. The most notable of these is fraud and safety.

Some cards may offer additional protection services, such as regular security checks and a fraud helpline, but there are still a number of things customers can do to reduce the risk of fraud. On the whole, any losses from fraud are covered, as long as the credit card company assumes you haven't acted negligently.

Taking simple measures will keep any chances of fraud to a minimum. Making sure you only use reputable sites when shopping online, never writing down passwords and reporting any unusual activity or breaches as soon as you are aware of them will all help. Regularly looking at your account and double checking after making purchases is an easy way of staying abreast of your financial situation.

This advice is essentially very similar to that which is designed to assist people in their initial choice of credit card. If a customer is careful and clear in what they want to get out of their card, there is no reason that it cannot be of great benefit.

According to the British Bankers' Association, the amount of transactions made on credit cards in this country has increased in the last two years. This has happened even with customers consolidating their cards and closing unused accounts.

Today, credit cards are being increasingly used for payments rather than simply for borrowing. Customers are becoming more aware of what is available to them and are now seeing credit cards as something they can utilise. The variety available means that many customer demands are met and catered for.