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Looking for a cheap credit card UK?
February 10th, 2010 by admin
Credit cards have become hugely popular in recent years and, with a vast number of deals now on the market, the choice can be overwhelming. Here are a few things to consider when choosing a cheap credit card UK.Credit cards tend to score high in one of three areas: balance transfer rate; purchase rate; and rewards and/or one-off incentives. A low balance transfer rate enables those with a pre-existing loan to move their debt to a new card at a minimal cost, or preferably cost-free. There are several companies who will offer a 0% rate, providing balances are cleared within three to six months, but be aware that the rate only applies to the amount transferred and not new spending.Low or 0% purchase rates help those who don’t clear their balance every month to fund an expensive buy at a low, or no, purchase rate. The best cards give you 55-60 days between purchase and payment, but income restrictions can apply.If you have no pre-existing credit card debt and you clear your balance every month, opt for a card with no annual fee that offers a loyalty incentive, such as cashback, Air Miles, or vouchers and, perhaps, an introductory incentive too. As deals frequently change, it is worth monitoring the performance of your cheap credit card UK regularly, especially in high-spending seasons when interest rates tend to rise.