UK Credit Cards

Nowadays almost all people, including students, have credit cards. Everyone knows that people have to grow up sooner or later and credit cards for students can provide young people with invaluable lessons in the world of finance. Young people who have student credit cards should know how to manage their finances as soon as possible. For the first time, young people with student plastics can be responsible for their spending and their bills.

There is no doubt that student credit card deals can help young people in building good credit history which they will need in the future if they want to apply for best credit cards.

While some young people manage to use their student plastics wisely and build credit history, others get into debt. Student credit cards can help you to solve some financial problems during your college years. But they can be also disastrous to your bank account, credit report and your ability to get the best plastics in the future.

Student plastics can be a good way of teaching young people how to become responsible for handling money. By wisely using credit cards, students will be able to build credit history and get benefits from obtaining these cards. On the other hand, plastics for students can cause lots of debt that may follow students after graduation from college or university. Young people should realize that their future financial life depends on actions they take during college years. So, students should learn how to manage their finances.

In fact, nowadays students can obtain a student plastic without much difficulty even if they don’t have a stable source of income. This kind of credit cards is created exactly for building credit history, so students with no or bad credit history can get these cards.

Nowadays there are many different banks and credit card companies that provide young people with a wide choice of student plastics. Students are considered to be the most desirable customers for banks and credit card companies. The fact is that many students can’t pay off their debts on time. As a result, banks and credit companies take advantage of this fact. They can make a lot of money by charging different annual fees, fees on unpaid credit card balances and late payment penalties.

It goes without saying that choosing a student plastic is an important decision that will influence the financial part of your life in the future. Thus, it’s not so easy to make the right choice among a variety of student credit card offers.

Such plastics can offer various benefits, such as no annual fee, 0% APR and different rewards. In case you want to benefit from all the rewards a student credit card can offer you, compare the best credit cards to make the right choice.

You should remember that a student credit card is not free money. It is a debt and you will have to pay it off.

Thus, student credit cards can be an invaluable tool for young people. Use your plastics wisely, make your payments on time and you will build good credit history.

These days, with so much easy credit available it is very easy to let your finances and debts get a little out of hand. Pretty much every morning when you wake up and check your mail, you will be greeted by a plethora of junk mail advertisements seeking to entice you into signing up for a personal loan, a new credit card, a debt consolidation loan or some other similar form of credit. Then on the television the same ads will be targeted at you all day long. When you check your email they will be there, filling up your inbox, and pretty much every high street store you enter will be offering you their own store card.

Budgeting, and keeping all of these various expenses under control just gets more and more difficult with the more options there are available and the more things you have to keep track of. However, simple household budgeting is still a good option for anyone who wants to keep their debts under control. The basic principle of budgeting is that your expenditure matches your income. It does not necessarily mean that you spend less money and make a lot of cutbacks in your lifestyle, although this is frequently what it entails.

Budgeting is more concerned with giving you the control you need to keep track of your expenses. There are a couple of ways in which you can make a budget and stick to it if you have credit cards. Credit cards give you a number of payment options for your convenience. You can set up a direct debit between your credit card company and your bank and inform them either to pay off the full amount on your statement each month, pay off the minimum amount on the statement each month, or pay a fixed amount against your credit card each month.

Paying the fixed amount is a very convenient way of budgeting, as you will know exactly how much each month will go to your credit cards. You simply select a sum that you can afford each month and have the bank transfer that against your credit cards. The only downfall of this method is that there is no guarantee that you will spend less than the amount you repay each month. So for example, if you are paying two hundred pounds against your card each month, but spending more than this, you will be building up a large credit card debt for yourself that you will have to repay at some stage in the future.

Beware Credit Card Users–It Is All In The Fine Print

Not reading the fine print of the credit cards you use is a sure invitation to have your blood sucked. Now a days millions of people are using credit cards to make purchases. If you pay for anything with a credit card, then beware that the 9% interest rate you thought you were locked into could actually go as high as 30%, and you might not know it until you get slapped with the bill-retroactively.

“Penalty interest rate” and “universal default” are provisions included by banks in their credit card offers which they claim are necessary to offset risks. These provisions are legal as long as issuers can say they warned you. The rates and fees in these provisions are all out of proportion to the risks. Issuers have used better ways in the past to protect themselves. For example, they used to cut customers off after they hit their credit limits, which I think was a good thing for the user.

Now they let you keep spending so they can charge you over-limit fees (as much as 29 per billing period) and permanently higher rates. This can be devastating for the budget of many users. So be careful–always read and understand the fine print before it is too late.

Never pay your credit card bills late even by an hour as your interest rate can be increased permanently. In May 2004, according to the testimony by credit card issuers before the Senate banking committee, 14.8 billion (or 11% of their revenue) were collected on penalty rates –which averaged about 24% this year according to the Consumer Action. To make things worse for the user the new rates can be applied retroactively to purchases already made. Companies usually specify an exact time by which payments must be received. If they don’t specify it, you should contact them to find out.

Be aware that even if your mortgage or other payment is late (under the “universal default”) credit card issuers can raise your rates because you are now classified as high risk. One bank was found charging a 35% universal default rate by Consumer Action.

Having too many inquiries into your credit history can also trigger universal default rate and you may be charged a fee thus lowering your credit rating.

Credit card issuers made 7.7 billion on penalty fees in 2003. There is no legal cap on banks’ interest rates. And the Supreme Court in 1996 prevented states from setting limits on late fees.

Legislations are underway to ban the “universal default” interest rates based on alleged missteps with another issuer, ensure that penalty fees match issuers’ costs and ban over-limit fees. Whether this actually happens or not time will tell. But until then you have to be extra careful and read every fine print because it is all in there.

Balance transfer credit cards can be an effective solution, properly used, for consolidating existing debts and avoiding a high APR on an existing card. However, customers should be aware of what to know before applying for a card, as well as what problems balance transfer cards will not solve. Customers should be aware of whether or not the balance transfer card’s introductory rate increases over time, canceling out the benefits of the balance transfer card offers in the first place. They should also be aware that previous bad credit history can complicate the use of a balance transfer credit card, and that only prudent overall financial habits in conjunction with occasional balance transfer use makes for a lasting solution.

Anyone who’s used a credit card for any period of time has likely found himself or herself faced at least once with the specter of debt: perhaps a paycheck doesn’t clear in time, a friend’s assistance fails to come through, a last-minute furniture sale attracts no customers. The outstanding balance is high, and an interest rate that at first seemed only theoretical (”I won’t have to worry about that,” the user thinks, “as long as I’m careful”) now seems disturbingly real. This situation is always possible, a natural product of any necessary financial risk, and there’s no shame in it. All that matters is finding a solution for the situation.

And solutions exist. It’s a common enough situation, in fact, that an entire variety of credit card has sprung up to cater to exactly this kind of user: balance transfer credit cards. The principle behind a balance transfer credit card is simple: the card encourages its user to consolidate his or her outstanding balance onto a single card with a very low introductory APR, often 0%. The user is then free from whatever higher APR might have crept up on his or her existing card, and it seems as if all financial worries have been eliminated in a moment by balance transfer credit cards: the magic bullet, it would seem, of the financial world.

But it’s important to realize that a balance transfer credit card is not a magic bullet: it’s a financial solution, like any other, with its own advantages and potential pitfalls. And it’s important for the potential balance transfer customer to keep a few things in mind when considering whether or not to save money by using balance transfers to consolidate debts.

The most crucial factor to consider is that the introductory rate on most balance transfer credit cards does not last forever. If the user thinks of balance transfers as outright eliminating debt problems–or at least eliminating them until some nebulous future time–that user could potentially run out the initial 0% grace period (most often twelve months) and find himself or herself faced with an APR that typically ranges anywhere from 11 to 18–not an unreasonable rate for someone who’s expecting it, but otherwise a possibly disastrous surprise.

So potential customers should make certain to research the full details on any balance transfer credit card (or any credit card) before making the decision to apply. Some cards also have options that could be deal-breakers (an high initial balance transfer may be required), or options that could be highly useful (some cards allow the user to maintain the initial 0% rate until all initial balances are paid off.) As in any situation involving credit or finance, the informed customer is always the more effective customer.

Another, perhaps more fundamental factor to consider before applying for a balance transfer credit card: balance transfers are not, in and of themselves, a cure for existing debt problems. They are a treatment, and one that only works in conjunction with good financial habits all around. Some balance transfer credit cards determine their introductory APR or regular APR (or both) by looking at the applicant’s overall credit history, meaning that in these cases existing financial problems, rather than being eliminated by a card, will actually prevent the card from doing its work. So balance transfer credit cards should not be looked at as a lifeline or a magic bullet, an excuse for building up high balances in hopes that a timely transfer will wipe all history out: rather, balance transfer credit cards are a tool, one useful only when accompanied by general financial prudence.

No one is perfect, and in the case that things go wrong and debts mount with no immediate method of paying them off in sight, consolidating balances can be a powerful (if in many cases temporary) remedy. But before making the decision to apply, customers must remember first of all to become informed about their options, and must further remember the first rule of finance: never assume the existence of a magic solution to problems; never substitute an attractive credit option for judiciousness and a sound financial plan.

3 Ways To Get Approved For A Student Credit Card

If you’re a college student, you know how expensive books, movies and tuition can be. And if you only work during the summer break, you may be looking for a way to stretch your funds through the cold winter months. Fortunately, a student credit card can help. Find one with low interest and good terms, and you can charge during the lean times and then pay it off when you’re making money on your summer job.

To get a student credit card, follow these guidelines:

1. Find some cards for comparison.

It’s easier than you think. Credit card companies often set up tables and booths at college fairs. You may even find fliers or applications around campus. And you can always find a student credit card with an online search. Be sure that the cards you’re considering are specifically student cards. Credit cards aimed at students tend to have more lenient credit score and credit history criteria, and they also tend to have lower interest rates.

2. Pick the one with the best terms.

Not all credit cards are created equal! Since your student credit card is probably your first, educate yourself a bit about the terms and jargon you’ll encounter. Choose one with a low interest rate, since that’s the “extra” amount your credit card will tack onto your balance each month. Look for one with a longer grace period, too, which is the amount of time you have to make a payment before interest begins accruing. Other things you should look for is a card with no annual fee and a low late payment fee.

3. Apply!

Simply fill out the application–either on paper, online or on the phone–and answer the questions on the form. You’ll need to reveal all the basics, like your name, current address and phone number. You’ll also need to provide them with a “permanent” address and phone number. The application will include lines for information about your school, your school’s address, your enrollment status and your year of graduation. It’s possible they’ll ask about your bank accounts and employment.

If you’re currently employed or have significant savings in the bank, chances are your line of credit–the maximum balance you can hold on your card–will be higher. But even if you only have a summer job, you should still be able to qualify for 500 – 1,000 in credit.

0 APR credit cards are here to stay. Now that we’re well into the New Year we’ve learned (again) the lessons of the festive season. Zero interest credit is a nice idea, but why not extend it beyond your present credit card to the next, and the next. This seven point checklist will assure the clever consumer of having that constant low APR credit for years to come.

1. Read the small print. Make sure it matches the offers on the credit card’s advertising copy. In particular, check for clauses that differentiate between purchases and cash transfers, or even cash withdrawals. Check that the card doesn’t stipulate a ratio between purchases and cash, charging an excess if the cash activity rises above the purchase activity (that is usually the way it is biased, but check to make sure).

2. Keep to the agreed credit limit as specified in the agreement. Do not exceed the balance limit as specified on your original agreement, or that’ll be the trigger for extra charges.

3. Pay at least the minimum charge in full. Even better, set up a standing order or direct debit with your bank. You can arrange to have the minimum paid directly and electronically from your bank account every month.

4. Avoid late fees by paying on time. There is a danger with people who have the benefit of a 0% APR credit card that they will tend to become complacent about it and forget to pay it. Yes, it does happen. But every time a payment is received late credit card providers can and will charge a late fee. This can add up, especially if someone is habitually late. Again, an automatic direct debit from your bank account is the best answer.

5. Factor in any extras in the agreement, as stated in the small print (which you will have read). For example, an annual charge may be applied to offset the 0 APR. Some 0% APR cards do this but others do not. Bear in mind that the whole APR concept was meant to level the playing field as far as extra charges were concerned. By paying an annual charge for your card you are not truly getting a 0 APR card.

6. Make sure you have in mind a new low interest or 0 APR credit card waiting by to which you can transfer the balance of your present credit card. Why have 0 APR credit for 6 months or 12 months when you can have it for years and years? Always check the press and financial columns for new deals and credit card offers with this in mind. Join an Internet forum that specialises in such matters.

7. Make sure that you transfer the balance of your existing credit card to your new credit card in full and on time. In particular, allow for time to process the balance transfer and for all the paperwork involved (yes, even in the age of the Internet there is still a certain amount of paper involved!) and be careful to check that the opening balance allowed on your new 0 APR credit card is at least the same or exceeds the balance that you wish to transfer from your existing credit card, or the shortfall will cost you money!

Low interest credit cards are available as alternatives to those with middle-of-the-road to very high interest rates. If you have a credit card with a high interest rate anywhere from 17% to 24% or higher, then you may not realize that it is costing you hundreds and even thousands of pounds every year in interest alone. Once you understand your credit and how it is impacting your debt situation, you will see how low interest or even 0% APR credit cards can be a much better solution.

Gather Your Statements

Collect your statements for all high and low interest credit cards. Include Visa, MasterCard, American Express, Discover, department stores, retailers, grocers and any other revolving accounts. For each bill, make a record of the total balance, minimum payment amount and interest rate. You might also want to include your estimated monthly payment (if it’s more or less than the minimum) and the monthly finance charge.

Compare Cards

If you compare the numbers for each card, you will be able to see which ones are costing you the most money. The higher the APR and the higher the balance, the more you will end up paying in interest in the long run. And, if you only pay small amounts of what you owe, you can go on paying for over 20 years. Now you can see the benefit of having a low interest credit card.

Categorize Your Debt

Once you’ve figured out which are the low interest credit cards and which are high, you need to categorize them from highest to lowest. Then reorder them, if necessary, based on the estimated amount of interest you would pay for the entire year. In other words, if you have a high rate card with a low balance, the overall interest may be less than a low interest credit card with a very high balance. This step will help you to focus on the cards that are taking the most of your hard earned money.

Negotiate With Your Bank

Before you cut up your plastic or send it through the paper cutter, call you current credit card company. Many consumers don’t realize it, but companies would rather lower your interest rate than lose your business. Tell them that you’ve been offered a better deal on a low interest credit card. They may just match that offer, saving you the time and effort used to close and open a new card.

Shop Around For 0% APR Credit Cards

Some banks just won’t budge. You may have to do some digging to get a low interest credit card. Check online, talk to your local bank and sort through those direct mail offers. Ask your friends, family, co-workers and other acquaintances to learn about the cards they use.

Carefully Read the Fine Print

Many cards look too-good-to-be-true – 0% interest on transfers, lifetime low rate, frequent flyer miles, insurance benefits, etc. Often times, the offers are just that. 0% offers may only be applied to a limited amount or during a specific time frame. Fixed rates may increase if you so much as miss a single payment and so on. Pay close attention to all terms and policies, making sure to read the fine print. Don’t accept a low interest credit card until you are sure you understand all that is involved.

Maintain Good Credit

Now you can stop throwing money down the drain. Treasure your low interest or 0% APR credit card and maintain your good credit rating. Pay more than the minimum amounts and don’t get behind. Just as fast as you were able to lower your APR, it could jump up to astounding numbers.

0% APR Credit Cards – What You Need to Know

0% APR credit cards are an appealing option for frequent shoppers that rely on having a low monthly interest rate when they cannot pay off the entire balance of the credit card in any month. But what you really need to know about 0% APR credit card offers, often times is never discussed.

For starters, the APR is the commonly-used acronym for “Annual Percentage Rate,” which is the annual month-to-month rate that you can expect to get for your credit card balance. Naturally, if you frequently carry your credit card balance over from month-to-month, it is important for you to have a low or even 0% APR credit card.

How it Works

Every credit card company makes money when shoppers use the card, but do not pay off the balance at the end of each month. Because the credit card company has lent shoppers money so that they can make their purchases, the credit card company will charge interest on the balance until the entire balance is paid off. The credit card company has the potential to make a generous profit from the balances of their customers each month. Naturally, as a consumer, having a 0% APR credit card means that your balance is carried over from month-to-month without any charges applied.

Beware of High Interest Rates

It may seem like credit cards actually lose money by investing in a 0% APR credit card promotion. However, the 0% APR credit cards actually help credit card companies find customers. For example, if there is a shopper that has a high APR (some are up to 20%) and he or she is having a hard time paying down the balance of the credit card, the purchaser is in an ideal situation to transfer their balance to a 0% APR credit card for a period in which they can focus on working down their debt. The situation is ideal for someone who is in short-term debt. However, to balance the 0% APR credit cards against the credit card company’s need to make a profit, as soon as a trial period expires, many credit card companies will increase their rates drastically. As a consumer, you need to read the fine print so that you are aware of the deadlines associated with this change-over.

Where to Find a 0% APR Credit Card

It may seem harder than it really is to find a 0% APR credit card. It’s advantageous to find a card that doesn’t require you to pay a month-to-month rate on the unpaid balance. However, credit card companies frequently enact 0% APR credit card promotional deals, so take a look around for what deals are available to you currently.

0% APR credit cards can make managing your debt very easy. While most of them do not require annual fees, it is important for you to understand what you are agreeing to before you sign a contact with a company. While most 0% APR credit cards eventually increase the rate after a set period of time, the duration of the promotional period varies by company. As with any credit card agreement, a little research and education into the details of a 0% APR credit card can go a long way towards helping you make a decision that can positively effect your finances. Choose wisely!

The era of 0% APR credit cards is still with us. Yes, you can obtain a spanking new credit card featuring a very low introductory interest rate and take advantage of what amounts to “free money” for you for up to one year. You can use your new card to your advantage, but you must be careful that you fully understand how a 0% APR credit card works to order to maximize its effectiveness. I will show you how, so please keep reading for all the informative details!

Soon after the new millennium started, interest rates began to drop to historically low levels. By 2002, loan rates for government funds dipped to just less than one percent, pushing consumer loan rates down with it as well. Credit card providers, seeing a terrific opportunity unfolding, immediately began to offer 0% APR credit cards to new card holders and even extended the offer to their current customers.

Today, interest rates have been climbing for two years, but 0% APR credit card offers are still available to you. Quite frankly, the entire lending business is very competitive and credit card providers are willing to forego interest for up to twelve months in order to get your business.

To maximize the effectiveness of 0% APR credit cards, there are a few things that you must know:

Limited Time Offer. 0% APR credit cards contain an introductory period lasting typically from six to twelve months. This means that anything you charge during that time will not accumulate interest. Go ahead and spread out your payments over several months: If you purchase something for 1000, you can make four equal payments of 250 interest free. Keep earning interest on your savings and let the credit card company fund your purchase!

Transfer Balances and Save Big! Many 0% APR credit card offers will allow you to transfer balances from your existing credit cards to your new card and waive transfer fees. If you owe 3000 on your current credit cards and are paying 19% interest on your balances, you could save nearly 600 in interest payments over twelve month’s time!

Pay On Time. Do not be lulled into thinking that a 0% APR credit card doesn’t require monthly payments. If you miss a payment or are late, you could find that your remaining balance is subject to interest charges and penalties as your card shifts to a default rate. Pay on time or kiss your 0% APR credit card rate goodbye!

Pay It All Off. In some cases, you must pay off your balance before the introductory rate period expires. If you don’t, the default rate kicks in. Make certain that you clearly understand your card’s terms.

Clearly, a 0% APR credit card has strong advantages for the person seeking to make new purchases as well as someone who wants to transfer their balances. Use a 0% APR credit card to your advantage and put some money back in your pocket!

A 0% APR credit card is an opportunity for you to cash in on a good amount of savings across the board. If you are like many, you are realizing that this might be a great way to realize true benefits from a credit card without having to pay much for it. Yet, there is much more to know about these 0% APR credit cards. You should take the time necessary to find the right opportunities for your specific needs. In many cases, this is a great option, if used in the right manner.

What Is 0% APR?

When a company offers you a credit card at a 0% APR, they are basically allowing you to borrow funds for no interest. There are generally some fees that are associated with the credit offers, but in most cases, you will see that they are still quite an affordable option. In most cases, the APR that is offered to you will one of two types. Some credit cards will offer you a standard APR, or annual percentage rate that is the rate you will likely hold for the time that you hold the line of funds. Others will offer a lower introductory offer. Normally, a 0% interest credit card is offered for an introductory time period only.

Should You Use It?

If you have the choice between two offers of credit, one with a lower rate than the other, you may be tempted to just go with the lowest offer. Yet, there is more to it than just that. In fact, you need to consider what the interest rate will be after the introductory period is over. For example, if you have two offers, one lower in the six month introductory period than the other, you may be tempted to go with the lowest offer. Yet, in the long term, that line of credit may have a higher rate. Determine which offers the best overall ability for you to get what you need in the least expensive manner.

The Benefits Of 0%

Yet, even with that said, there are plenty of benefits of selecting a 0% APR credit card. For example, if you know that you will be paying off that line of credit quickly, within the introductory period, it is well worth making the switch. After all, there is not anything better than borrowing money for free. If you have a credit card currently that has a much higher interest rate, you can save yourself quite a few fees if you do a balance transfer to the 0% APR credit cards as well. Here, make sure that the rate applies to balance transfers before making the move.

In short, a 0% APR credit card is an opportunity for you to invest in paying less. To benefit from them, make sure to get all the facts and take the time necessary to compare them. To find these offers, simply check out the opportunities offered by the lenders. Most credit card companies do offer some form of introductory rate reduction offer including 0% interest credit cards.