Wise up on your best options for credit cards
Credit cards differ, so get one that is right for you
CREDIT cards can be a brilliant way to help manage finances – but choose the wrong one and plastic becomes less fantastic.
Get it right, though, and you’ll pay off debt quicker and cheaper, be able to spread the cost of bigger-ticket items without paying any interest and build up a good credit score – meaning you can bag the best deals on lots of financial products.
You first need to decide why you want a credit card, so you can choose one that is right for that purpose.
There is no one card that suits all needs. Some people may need to consider having more than one card, or they could end up in a muddle by spending and building up new debt on a card they applied for to try to pay off existing debt.
James Jones, head of consumer affairs at credit reference firm Experian, said: “Using credit cards can be a real boon for your credit score, if you know how to play your cards right.
“Lots of people aren’t aware that they may not always get the advertised interest rate when they apply for a card or loan. While lenders must give the headline rate to at least 51 per cent of successful applicants, the remaining 49 per cent may be offered a less attractive deal.
“Your credit score helps lenders decide what to offer you, with the best deals usually being reserved for the top scorers.”
Here we take you through the process of applying for a card and the best way to manage plastic to ensure you achieve the highest credit score while paying the least interest.