There are numerous credit card offers that you might want to take advantage of, but are they really that great for you? Sure there are a lot of articles on the web telling you to compare cards and chose the right one for you; however companies make that really difficult by offering very similar credit card rewards and deals. Store cards used to be extremely popular because of the discounts and savings you could earn. Now we are seeing articles warning consumers against the store card market.

In fact in a news release George Osborne states that the high street shops are pushing their store cards on shoppers, which have excessively high interest rates. The Office of Fair Trading may soon become a regulator for the cards to penalize any store with these rates. About 2.2 billion pounds is owed on store cards and the number of accounts in the last five years has double to 13.4 million. Compared to credit cards this is pretty low as there are more than 1 billion credit card holders in the UK at the moment with close to the same amount in outstanding debt.

The store cards are not the answer instead for consumers who need to take care of high debt and get a fair rate on a card they should be looking to the zero percent credit cards. A site www.credit-cards-0.co.uk compares every zero percent credit card offer on the market at the moment. The website is set up to help consumers find the best deal for them.

A zero percent credit card is based on an introductory deal. Most of the cards will have the same purchase rate as other cards on the market, but the balance transfer rate is zero percent for 3 to 17 months. There are also credit cards out there offering life of the balance transfers.

The life of the balance transfer will offer a reduced interest rate by half or even more than half to the consumer. This interest rate will stay on the card until the balance transfer has been paid off. Barclay is one card that offers the life of the balance. In fact their rate has been as low as 1.99 percent for this type of card.
When consumers consider the high interest rates on store cards that are usually five percent higher than a credit card and then you add in the special rates for the credit cards, it makes the store cards look even more unfavorable.

Shopping for a new credit card can be difficult and a long process even using a comparison site like www.credit-cards-0.co.uk. If you are one of the consumers with a store card you might consider checking to see if the new credit card will allow the balance transfer between the cards. It is rare, but some credit card issuers will allow store card balances to be transferred.

The only way to get out of debt is to take a proactive stand regarding credit cards to obtain a card that works for you not the company.

A credit card is a significant tool in planning your finance. There are thousands of offers available with these cards and you may want to get the best and cheap deal while availing a credit card. You have to make sure that the credit cards that you are getting will meet your requirements in the best manner.

Look for the hidden costs

Many credit card companies nowadays offer low annual rates of interest to lure customers. But, in order to compensate, they increase the fees of annual membership. So, you have to consider the fees charged on various credit cards and should apply for the one that suits you the best. Also, you can compare the rate of interest and fees charged by different credit card companies to get the best deal. If you feel that your credit card’s APR is less than others and the fees are also reasonable, then only you should get the card. If you have selected a credit card with a little higher APR and no fees, then also you will be paying the same or less amount when compared to the credit cards of lower APR and higher fees.

Interest free credit days

Nowadays, different credit card providers offer different interest free credit days. It is not the same in all the credit cards. So, you need to look for the number of interest free days. Normally, the credit cards carry 36 to 54 interest free credit days. So, you should choose the one which offers you more interest free credit days. But, if the interest rate is higher and they offer more interest free credit days, then there is no point in getting such a credit card. You should take into consideration both the rate of interest and interest free days to decide on the credit card.

Reward programs

If your credit card gives you cash-back rewards on every purchase you made and charges a little higher APR, then will you accept it as the best credit card available in the market? What if another credit card gives you nothing as reward, but charges low APR? It entirely depends on your repayment habit. If you repay the expenses made every month promptly, then there is no need to worry on the higher APR as you will pay the amount within the interest free credit days. But, you only make payments in installments, and then the credit card with lower APR suits you the best. So, plan your strategy before opting for a credit card.

Interest rates on credit cards keeps on changing and some companies even hike them without any prior notice. If you ignore the change in the interest rate, then later you have to pay much more than what you have estimated. Therefore, you need to research before purchasing a credit card and also you should shop smartly to avoid bulk payments. Also you should make it a habit to pay the due amount of your credit cards within the interest free days to save your hard earned money.

As consumers gear up for what promises to be a good, if not spectacular Christmas shopping period, it seems that we will soon see a stand off between the consumer and the retail sector.  Stuart Rose of Marks and Spencer recently pleaded with his retail counter parts to hold firm in the face of pressure to start early Christmas sales – forecasting that the consumer was ready to spend, and spend at full prices.  So who will win?

While this is the first time we have actually seen such a formal declaration from a leading member of the retail sector, in truth, this battle has been going on for decades.  Who will blink first, the consumer or the retailer?

In recent years we have seen a number of main retailers break ranks before the New Year’s sales and implement what have been drastic price cuts in some areas.  This year seems set to be little different, and the fact that the UK economy is forecast to decline over the net 12 months has some what handed power to the consumer.  Retailers will surely break rank as the competition heats up, and if the consumer is careful and willing to wait, there are surely many bargains to come.

So the moral of this post is, don’t be too hasty to get your credit card out just yet, because while you will save yourself interest payments the longer you wait, you also have the chance of getting your chosen items at a reduced price.   This year will be very interesting, now that Stuart Rose has most definitely drawn the battles lines.  Weapons at the ready!

As we move towards a decline in worldwide business activity, a time when interest rates around the world will fall, many are starting to ask when they should consider re-financing their debts.  Is it time to do it now, or wait as long as possible?

While it may be tempting to take advantage of the recent reduction in interest rates in some areas of the world, those who can may well benefit from waiting a few months longer.  The UK for one is expected to see interest rates start to decline very soon, with recent indications by the Bank of England seemingly confirming this.  We are also in a situation where finance is still more expensive in real terms than it was 6 months ago, because there is less liquidity in markets, which has pushed money market lending rates higher.

If you are looking for a fixed rate refinancing of your debt, and you are able to hold on for a little longer without impacting upon your credit rating, it may well be beneficial to hold off any action for a little while.  We could see UK rates fall by more than one percentage point over the next 12 to 18 months, depending upon the performance f the economy.  Even this relatively small fall will offer many consumers, who have built up substantial debts, the chance to reduce their future debt repayments.

Each person’s situation will be different and there is no simple answer to the question, but it seems inevitable that the UK, US and other major countries around the world will be seeing lower interest rates in the not too distant future.

It has been announced that Halifax have begun the process of posting 25,000 contactless debit cards to a range of London based customers, in what they hope will be the beginning of a national roll out.  We have covered contactless cards in the past, these are the cards which do not require a security input for items under £10, you just flash the card past a reader.  The card also acts as a traditional debit card for larger amounts as well as an ATM card.

While the announcement will be welcomed by many retailers who find transaction costs high for smaller sales, it seems that we are taking a step back with regard to card security – surely the point of Chip and Pin (the supposed saviour of the banking system) was to ensure contact between the customer and the retail business.  The billions of pounds which have been spent on card security seem to have been forgotten in the rush to push as much through the tills as possible.

Even though the maximum amount of £10 is fairly low and will not interest all but the petty crooks, there is concern that slowly but surely the £10 amount will rise and rise until we actually arrive back at a contactless card. 

It seems as though the banking and business communities are finding it very difficult to arrive at an understanding for smaller sales, with current costs being effectively prohibitive and taking away much of a retailers potential profits – before their own cost are deducted.  Whether the contactless card will work or even be accepted is open to debate, but many believe that this is a major step backwards in the fight against the fraudster, and plays straight into their hands.

If you are looking to buy your loved one an iPhone for Christmas, a phone which is sure to be top of many shopping lists, you will need to ensure your have either a credit card or a debit card when paying.  Why? Apple have taken the amazing decision to refuse cash purchases of the iPhone, as they are insisting upon a way to trace the original owner of any phones which turn up, unlocked,  in other areas of the world.  Is this the start of a new trend?

Thankfully it seems highly unlikely that this is the start of the “cash less society”, more a case of Apple protecting their intellectual property, and safe guarding the release of the iPhone in many other areas of the world.  However, it does prompt the question, do credit card and debit card purchases actually infringe your privacy?

Apple may well have opened up a whole new debate about “big brother” watching you, with the revelation that they would (where required) use you personal address details to question you about any anomalies with your mobile phone.  Is this a move too far? What else can they do with your credit card records? Will there be a major consumer back lash?

While we may see some short term discussions about the issue of privacy, if the truth be told, the credit card companies have been watching our spending patterns for years, with sophisticated software available to forecast your future spending patterns.  Slowly but surely the “unpredictability” of consumer spending patterns is being eroded, and we are being monitored continuously - so what’s new?

As we leave summer behind in the UK, many are now looking towards Christmas, wondering how they will be able to cope, how they will be able to pay for the children’s presents.  Christmas is a very difficult time of the year for many, when emotional blackmail can actually see the majority of us spend more than we had bargained for.  What are the pitfalls to watch out for?

Do not over spend!

While it may seem obvious, this is the major downfall of many people who are already sitting poised with their credit cards to hand and their eye on the next big gift for their loved ones. This is also the time of the year when your credit card will melt, racking up masses of debt which many people will find difficult to pay off in the new year.  This is the time of you when you need to stay focused and keep to your budget - no matter how hard that may be!

The credit card culture in the UK has never been more alive, and with the opportunity to purchase more and more gifts online, this Christmas seems set to be a bumper one for the retail sector.  Historically, even in times of doom and gloom, people have always found money for the Christmas period, and while it may take until next year to pay off that debt, few will be sitting back on their hands.

How can you ensure that you do not fall into the debt trap?

While it is easy to advise staying within your budget, how many of us will actually do that? How difficult is it not to buy that extra little gift for a loved one, what really is the price of that little smile on their faces as they open their gifts on Christmas day.  Unfortunately to many people, Christmas is a very traumatic time, and these are the people who need to ensure they spend within their limits.

Calculate what you can realistically expect to spend, and if you know that you are going to over spend, then why not look at a loan rather than very expensive credit card debt.  A loan is more structured and provided that you arrange a payment plan that you can afford, you will be able to reduce your debt in a controlled manner.  These minimum payment rules on credit cards can often cause major problems!  

While the credit card industry has spent billions of pounds developing and introducing Chip and Pin technology, why have Mastercard now decided to introduce the so called PayPass technology into the UK, for transactions under £10?

The PayPass system operates in a similar way to the Oyster system which is used on the London Underground, whereby the consumer simply passes their card across a reader and the funds are taken from their account - no Pin number, all automatic.  While the system has the potential to have a major impact on reducing queues in a number of retail outlets, there is also the potential for fraud.  

The operators of the system admit that while the system is only available for individual purchases up to £10 in value, there will be no security checks at all until the £50 level has been reached in quick fire accumulated purchases - at this point the user will need to input their PIN number.  While the £10 limit does offer some limitations for fraudulent activity, the £50 security barrier is a little higher than many feel comfortable with.

The system itself is used in 19 other countries across the world, and the technology currently has a client base in the region of 16 million.  Many are now questioning why the industry spent so much money developing Chip and Pin in the UK, only to revert to PayPass for smaller purchases? 

Initial research has shown that it may take some time for the UK consumer to actually accept the system - a consumer who over the last 10 years has been constantly reminded of the need for security!

A report issued today by the finance industry has highlighted the further move away from traditional cheques, with credit cards and debit cards set to fight it out for the UK’s most popular form of non cash payment.  The recent decision by ASDA not to accept cheques as payment, for what they describe as “increased processing times” is perhaps another nail in the coffin of the traditional cheque payment system - a system often criticised for being too expensive and taking too long to complete.

The report showed that debit card spending was the most popular form of payment last year, showing an increase of some 14% to £195 billion.  Cheque payments were still in second place, but showed a 12% drop to £164 billion, as credit card payments stayed fairly constant at £126 billion.  Debit cards have enjoyed a real boost in popularity over the last couple of years, perhaps replacing the traditional cheque and reflecting the increase in “safe financial planning” by many looking to stay within their limits.

Even credit card debt has been falling, having hit a peak of some £58 billion in January 2006, before settling at £54 billion in May 2007.  Its seems that a growing number of consumers may well be forecasting payment difficulties if interest rates continue to rise, hence the substantial reduction in outstanding credit card debt.  The problem now is that those who cannot afford to pay off their balances in full will see substantial increases in their interest charges over the coming months.  The withdrawal of a number of credit card cut rate interest offers often indicates more interest rate rises to follow.

While it is encouraging to see debit cards increasing in popularity, thereby ensuring that consumers only spend funds which they have in the bank,  credit card debt is still at a very uncomfortable level.  When the crunch comes (as it surely will with interest rates set to rise higher) it is those with high rate outstanding debt who have the most to lose.