Credit cards are pretty popular and in widespread use in UK. Credit cards are accepted at most shops and other merchant stores/outlets. As in the US, UK credit cards too are on offer from various banks and financial institutions. Again, UK credit cards too offer a number of benefits which vary from one UK credit card to another (though there are a lot of common benefits too which are same across various UK credit cards).
Due to the fierce competition in the UK credit card market, various UK credit card suppliers offer attractive balance transfer schemes too. There are some UK credit cards that offer 0% balance transfer for 9 months and there are others that offer 0% for 6 months. However, the catch here is that these UK card credit suppliers differ on their standard APR rate i.e. the APR rate which comes into effect after the expiry of the introductory 0% balance transfer offer. Further there are some UK credit cards that do not offer a 0% balance transfer but instead offer a better standard rate (APR) throughout. Some UK credit card suppliers combine 0% offers with accrual of points on a rewards programme. Another popular thing among UK credit cards is to combine cash back offers with balance transfers. Then there are some very attractive offers which give 0% not only on balance transfers but also on Purchases (for a short period like 5 month or so). You also have a few UK credit cards that can be procured by people with bad credit history too (of course, the decision on approval of such a credit card application will lie with the credit card supplier).
So what does one do if one wants to transfer balance to another UK credit card. Well, it's quite simple. You need to take stock of your current financial situation and determine if a period of 6 months or 9 months (or maybe even 12 months) would be sufficient for you to fully payback the dues on your UK credit card. If the answer is in the affirmative, just go ahead for the UK credit card that offers 0% balance transfer for this period (even if the standard APR rate is a bit higher). However, the assumption here is that once you payback the debt on your UK credit card, you will stick to controlled spending and will pay your credit card bills in full amount by the due date for payment; otherwise, the choice of a higher standard APR will hit you very hard and you will be in deeper trouble. However, if you think that 9 months is not sufficient to pay back the debt on your UK credit card, then you should look to strike a balance between the zero APR period and the standard APR rate, and choose a UK credit card which leads to the least total outgo (you will need to sit with a calculator and calculate the total outgo on various UK credit card offers).
This is the most basic aspect that you need to consider before you decide on which UK credit card is the best for transferring balance. Other things like 0% on purchases, reward programmer points etc are secondary things.
According to APACS (Association for Payment Clearing Services), in 2004 we Brits charged just about ?269bn on our plastic. Cash sales for the same period totaled just about ?268bn. For the first time in history, credit card sales topped cash sales. If it wasn't official before, it is now - credit card UK spending is a way of life. What has made credit cards so popular in the UK in just a generation?
1.Living on the never-never has become living for today. Today's culture is more mobile - both socially and financially. We've come to expect that we'll have more to do with tomorrow than we have today. With that comes the realisation that debt is less a burden of shame than it is a payment in advance from tomorrow's wealth.
2.We're richer faster than ever before in history. It's a hurry hurry get it now culture that's fuelled in part by watching housing values soar while interest rates remained low. As a result, we're feeling richer and more able to take on some debt in the interests of living well NOW.
3.And then there's the American influence. It has to be said. In the mid-90s, American lenders set up shop and started doling out easy credit terms and quick turn-around times on credit card and loan applications. With the advent of online applications and scoring checks, what used to take days now takes minutes.
All right, you're saying - what's all this got to do with the popularity of credit cards in the UK? Simply this - in less than a decade, aggressive marketing, more fluid credit and more affluence set the stage for credit cards to become an every day necessity rather than a luxury afforded the precious, privileged few. Credit cards offer advantages in so many ways that once they became easier to acquire, we've quickly made up for lost time.
4.Increased purchasing power A credit card allows you to make a purchase now rather than wait till you've saved up for it. If you're realistic about what you can afford, this isn't living beyond your means - it's tapping into your future savings
5.Ease of purchase A credit card allows you to make purchases in places where cash is difficult to handle - over the telly or online for instance.
6.Protecting your purchases If your purchases are lost or damaged, you have proof from your credit records that the purchase was made. It's far easier to get reimbursement with that proof. In addition, many card issuers insure purchases made on their cards for up to a year.
7.Building your credit history Using credit cards wisely builds a strong credit history - a very good thing when you go to apply for a mortgage or car loan.
8.Quick cash for emergencies Cash advances make it easy to get cash in a real emergency - without resorting to bank loans or begging relatives.
9.Ease of record keeping Credit card statements give you a handy record of all your purchases for verification when you need it.
10.Credit card benefits Cash rewards and cash back and discount programs from various card issuers can save you a good bit.
It's easy to apply for a credit card,/a> online. At moneyeverything.com, you'll find a listing of credit cards that make it easy for you to compare them against each other. If you're looking for the best credit card UK issuers have to offer, you'll find it at moneyeverything.com.
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