A credit card is a great financial tool to have especially if you travel and you don’t want to carry cash around.
From instant cash when you need it, to cheaper flights and cashback rewards that will make you smile, we’re going to discuss why it’s a great idea to have a credit card in the UK.
A convenient credit facility to make your life easier
A credit card is a convenient way of shopping online or buying an item without taking out a loan.
Since credit cards can come with exceptionally affordable introductory rates and features, making large or multiple smaller purchases can be both simple and affordable.
Many credit cards have a 55-day interest free period. This makes a credit card an affordable way to shop without cash. These interest-free periods can even extend to 6 months and, if managed correctly can offer holders a way to make use of credit at absolutely no cost.
Benefits of owning a credit card
There are many benefits to owning a credit card. They are very easy to apply for, you can go into the bank or you can apply online. Visit the lenders’ website and fill in a quick online loan application.
The lenders work fast and as soon as the credit check is completed, you will be notified about the outcome of your application.
Improve your credit score
One of the best benefits is that every time that you use your credit card and you pay the amount back in full, this helps to improve your credit score and that is great for if you would like to take out loans in the future. You can get a loan at a better rate if your credit score is high enough. You can also get discounts on shopping and holidays.
Make shopping a dream
If you would like to buy online, you can then use your credit card and secure the item. There are even points that you can earn when you spend on your credit card that can be used for various things. For one if you like to travel and use your credit card to buy your plane ticket you can get money back or points.
Build your credit score with a credit card
A credit card can have a quick, positive effect on your credit score. If you stick to your monthly repayments and pay on time each month this can raise your credit score quickly.
When you have a credit card that is paid off it is advisable not to close that card. The credit card that has been paid in full is a record of your payment history, this can make getting a loan much easier and you will also receive better rates on your loan.
Travel the world with one credit card
Credit cards work in any currency. This makes traveling so much easier. You can pay for accommodation, food, and anything else you need with your credit card without having to exchange money.
With an interest-free period, this makes having a credit card a safe and reliable way to travel. Credit cards are safer to carry than cash, and when a financial emergency happens, you do not need to take a loan, you can simply swipe your credit card.
Track your spending with a breeze
Credit cards make it much easier for you to track your spending. Many lenders have apps and online statements that you can view at any time. You can track your spending and find areas where you might be able to save.
You can also use a credit card to consolidate your debt into one affordable monthly repayment, helping you to become free of bad credit.
Balance transfer credit cards are a great option for those who have multiple credit cards or are paying high interest to reduce the cost of their credit card debts.
There are limits to all balance transfer credit cards and a revert rate will be charged once the interest free period expires. This is why it’s absolutely critical to repay your balance transfer credit card before this period expires.
Earn cashbacks & rewards
One of the primary benefits of a credit card is the rewards that can be earned. Many credit card providers offer a unique rewards programme that offer points for spending, vouchers and other rewards.
Airline credit cards offer miles and travel rewards which can offer you reduced rates on tickets or complimentary upgrades. Cashbacks are also a great reward that can offer you money for your everyday spending or spending from a certain retailer.
Apply for a credit card today
Before deciding on a lender or a credit card, compare prices, interest rates, and rewards. The easiest way to compare credit cards would be to use a loan comparison site.
With one application you can get multiple quotes with various benefits and rates. You can choose the card that will work best for you. Make sure that you shop around and look at different options before choosing, some credit cards carry bigger benefits and lower interest rates.
Managing your credit cards
Whether you have one or multiple credit cards, managing them is crucial to maintaining a healthy credit score as well as finances. A good way to start is to read all the terms and conditions that go along with your credit card.
From you credit limit, to rewards, retail partners, limits and other benefits, your credit card’s terms and conditions are also important. Next it’s crucial to download and review your credit card statements on a regular basis to ensure that they are accurate and to keep track of your spending.
Finally you must maintain your minimum repayments to ensure that you stay within the agreed terms of the service. You can do this by automating your minimum repayments on your banking profile or simply settling your full balance automatically.
As can be seen it is such a great idea to have a credit card in the UK as it offers instant access to cash as well as great rewards and features that you can enjoy.