Research
These days with more and more financers popping up on the high street, it’s crucial that you do your research. Ensure you are borrowing from a reputable brand because something that may seem too good to be true probably is.
Interest
When you finally pick a brand to borrow from, explore all of the interest rates and the repayment details. A lot of companies offer 0% interest but only up until a certain point, though of course this is not as heavily advertised as the big, fat zero smacking you in the face.
Never withdraw money
Use your credit card to consolidate debts or for large one off payments but do not take out money with it. Most of the time your 0% interest isn’t included in cash withdrawals and this is when the big charges start appearing on your statement.
Be able to repay
It seems like an obvious one, but when you’re being offered £1,500 to take away there and then sometimes your mind can run away with you. Remember: this is not free money and it will need to be paid back. Calculate your finances before signing on the dotted line because once you have there’s no going back.
Here are some of the best credit cards on the market.
Money: Things to think about when applying for a credit card
1 of 5Barclaycard Platinum
0% interest on balance transfers for 33 months. On an assumed credit limit of £1,200 your purchase rate (what you are charged when buying items with the credit card) is 18.9% p.a. However, you get 0% interest on purchases for the first six months. For more information visit www.barclaycard.co.uk. www.barclaycard.co.uk
2 of 5Sainsbury’s Nectar
0% interest on balance transfers for 12 months. On an assumed credit limit of £1,200 your purchase rate is 18.9% p.a, with a representative APR of 18.9%. You have 0% interest on purchases for 12 months. You also earn Nectar points when using the card. For more information visit www.sainsburysbank.co.uk www.sainsburysbank.co.uk□
3 of 5Tesco Bank Clubcard
0% interest on balance transfers for 3 months with a 2.9% fee. On an assumed credit limit of £1,200 your purchase rate is 18.9% p.a, with a representative APR of 18.9%. You have 0% interest on purchases for 19 months so this one is great for shoppers. You also earn Clubcard points as you shop. For more information visit www.tescobank.com www.tescobank.com
4 of 5Santander 123
0% interest on balance transfers for a month with a 3% fee, so this isn’t the best card to consolidate other debts with. However you do get 0% interest on purchases for 18 months so it’s another great one for shoppers. On an assumed credit limit of £1,200 your purchase rate is 12.7%, a £24 annual fee, with a representative APR of 16.5%. For more information visit www.santander-products.co.uk www.santander-products.co.uk
5 of 5Capital One Classic Platinum
This card is great for rebuilding bad credit. It comes with a £200 minimum credit limit but on an assumed limit of £1,200; your purchase interest rate is 29.84% with a representative APR of 29.8%. Use this card and pay it off quickly as the interest rate is much higher than the others, but it will have a positive effect on your credit rating. For more information visit www.capitalone.co.uk www.capitalone.co.uk