Credit cards are not only related to spending. They are also powerful tools that can help you save money, direct debt, and even win prizes when used wisely. Whether you want to reduce interest payments, earn cash in daily purchases, take the air shaft on the shelf for your next holiday or avoid wages while traveling abroad, there is a credit card according to your needs.
In this guide, we will break the best options on the market for balance transfers, purchases, cash, air miles and travel expenditures. We will show you how to use these cards in your own benefit by providing you the highest value while avoiding common mistakes.
The 0 % purchasing card allows you to make new purchases without paying interest for a certain month. This can provide thousands of savings compared to using a standard credit card, assuming that you pay the balance in the interest -free period.
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These cards are perfect for planned, required purchases. Think of them as a tool to manage big purchases such as a new TV or basic home developments.
Let’s say you get a 0% purchase card with a 10 -month interest -free period and spend £ 2,000 on new devices. If you pay £ 200 every month, you will clean the debt before the interest starts. However, if you still have a balance after the 10 -month period, you will start to accrue a standard rate of up to 27% annually.
Lock Points:
1. Make sure you pay at least minimum each month to maintain the 0% agreement.
2. Lend you to pay back easily within 0% period.
Credit Card Specialist Kate Steee on Personal Finance Comparison Finder.com“TSB currently has a longest 0% purchasing agreement in the market in 25 months, M&S (MKS.L) and Barclaycard in front of 0% for 24 months.
“If you plan a big spending like a summer vacation or some new garden furniture, the current 0% purchase card range can offer a useful way to spread the cost. None of these cards will come with annual wages, but after all 0% period, it will return to very standard (punishment ‘) rates.
Are you planning a trip abroad? A expert travel credit card can save you a package by offering excellent exchange rates without ordinary external trading fees.
Most credit and debit cards pay approximately 3% for foreign transactions, so purchasing £ 100 abroad can cost you 103 £. Beyond that, some cards add a fixed fee for each overseas process.
Expert travel cards allow you to spend abroad in the rates of your bank, renounceing these fees.
Lock Points:
1. Avoid cash withdrawal processes because they come with wages and interest.
2. Use the card to spend abroad to enjoy perfect exchange rates.
Stere said: iz If you are preparing for the holiday season, there are great offers to help you avoid transformation fees abroad, and you can even earn cash for your expenses (at home or abroad).
“Natwest (NWG.L) offers a 1% cash return for all appropriate travel expenditures, while Barclaycard’s (Barc.L) new promotion sees that you earn 0.5% cash until November 30th. Make sure you pay exactly your card to avoid paying interest (soon sleep more weight).
If you travel frequently, a credit card for Air Miles can help reduce the cost of flights and even unlock advantages such as flights and hotel accommodation. Using these cards for daily purchases, you can earn points that can be used for flights with your favorite airline’s loyalty program.
Read more: How can you use your Avios points for more than flight tickets?
How does it work:
Win a 1. Mile: Points are usually won by the amount you spend and the class of your ticket – premium tickets usually earn more points.
2. Use points: Although taxes and fees are still valid, you can use points to meet the cost of flights or upgrades.
Stere said: “For the Grand Awards, the British Airways (Iag.l) American Express (AXP) Premium Plus card offers £ 30,000 Avios when you spend £ 6,000 in three months, while the Barclaycard Avios Plus card offers 25,000 Avios to spend £ 3,000 in the same period.
“Virgin Atlantic fans can earn 18,000 points by making their first purchases in 90 days with Virgin Money Virgin Atlantic Award Plus Credit Card. Remember that only cards with the biggest promotional prizes have the biggest annual wages.”
If you are struggling to keep up with credit card payments, the balance transfer credit card may be a lifeguard. These cards allow you to transfer the existing credit card debt to a new card with a 0% interest rate for a certain period of time, and potentially saves hundreds of pounds interest rates.
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However, there are some important rules that should be followed to benefit from these agreements in the best way:
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Always pay a minimum of monthly repayment. Missing payment may cause a 0% interest agreement, exposure to fines and damage your credit score.
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Clean the debt in interest -free period. To avoid paying interest after the promotion period is over, be sure to pay the entire balance over a period of 0%.
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Do not use the card for new purchases. 0 % agreement is usually applies only to transferred balances, and the use of the card for new expenditures may cause heavy interest fees.
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Check your credit score. The best opportunities are often reserved for those with a strong credit rating, so it is worth checking your score before applying.
Stere said: “There is currently a healthy competition in the balance transfer market, 4 major names offer almost 0%. MBNA manages the package with 0%and 2.99%balance transfer fee for 34 months.
If you are on the market for a balance transfer and you don’t think you need such a long period of time to clean your card debt, first consider the longest paid agreements on the market (Barclaycard offers 14 months without transfer fee). However, if you know that you will take a longer period of time to clean your debt, it is worth a little shorter 0% to get a lower balance transfer fee. “
A cash credit card reward you with a percentage of your expenses and give you effective back some of what you spend. For example, if your card offers a 1% cash refund and spends 100 £ on food, you will earn £ 1. This cash return is usually deposited to your account or added to your expression.
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Things to pay attention to:
1. Boundeds: Some cards close the total cash refund where you can earn.
2. Entry offers: Cash refund rates may only apply for the first few months.
3. Restrictions: Some Cashback offers are limited to certain purchases or retailers.
4. Minimum Expenditure: Some cards require you to spend a certain amount for cash refund.
Stere said: “Amex (AXP) currently offers the highest promotional cash return rate: 5% (up to £ up to £) for the first five months. Five months later, you can earn 0.5% of the daily Amyx (1% for more than 10,000 £ 1% per year).
“Then you can earn money on 0.75% – you can earn extra cash on the card after you return to the card each year after you spend £ 10,000 each year. However, if you want instant welcome bonus, you can get 20 £ 20 £ Amazon (AMZN) gift card with Amazon Barclaycard.”
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