Credit cards – what to look out for

With the vast number of credit card companies out there, choosing the right credit card for you is sometimes easier said than done.

It is vital that you understand the terms and conditions for the credit card you choose to ensure you don’t join the millions of people struggling with credit card debt.

We’ve outlined a few things to look out for:

Fees

Make sure you know how much you will be charged for late payments, failed direct debits, cash withdrawals and transactions when you’re abroad.

APR

Many adverts for credit cards will promote a ‘typical APR’.  This is not necessarily the APR you will pay.  A typical APR is the rate that the lender must offer to at least 66% of successful applicants, so if your credit history is less than perfect, you may be offered a higher APR.

Allocation of payments

Check to see what debt is paid off first when you’re making your monthly repayments.  How much of your monthly repayment is allocated to any balance transfers?  Purchases?  Cash withdrawals?

Promotional rate

Inevitably, there will be a time limit on any promotional interest rate you are offered.  Ensure you diarise the date the promotional interest rate ends and shop around for another low rate credit card beforehand.

If you’re struggling with credit card debt, you’re not alone.  Contact us today, we can help.

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