UK Credit Cards

Credit cards are basically potential unsecured loan facilities. This facility is easy to access by using the credit card to purchase goods and services as an alternative to cash or cheque.

Credit cards were first introduced into the UK in the 1960's by Barclays Bank. The Barclaycard remains one of the most popular credit cards in use today.

Avoid being confused between debit cards, charge cards and credit cards. The debit card (e.g. a Switch card) looks like a credit card but is linked directly to your bank account and purchases will be immediately debited.

Charge cards and credit cards operate by debiting your card account and a statement is sent to you each month detailing the minimum to be paid and a date by which it must be paid. The charge card has no credit facility attached to it so you have to pay off the whole amount each month. These cards do not provide the same level of consumer protection as credit cards.

There are many credit card issuers today and Find Credit Cards will help you to choose the most appropriate credit card matching your needs and spending patterns.

Credit cards are very useful but take care to avoid running up debt that you cannot service from your income. Interest rates for borrowings are generally much higher than loans and bank overdrafts so it pays to repay as much of the outstanding balance as you can.

Take care to match the credit card to your spending patterns, if you expect to have large monthly balances outstanding then go for the lowest interest rate credit card and avoid add on goodies, such as airmiles and cashback, unless of course you can identify a credit card which gives you both!

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