Credit cards are not just about expenses. They are also powerful tools that, when wisely used, can help save money, manage debts and even earn rewards. Whether you are looking for interest payments, cashback earn with daily purchases, pick up air mushrooms for your next vacation or avoid reimbursements while traveling abroad, there is a tailor -made credit card for your needs.
In this guide we will split the best options on the market for balance sheet transfer, purchases, cashback, air mushrooms and travel expenditure. We show you how you can use these cards to your advantage, so that you get the most value and at the same time avoid common errors.
If you have difficulty keeping up with credit card payments, a credit card for a balance transfer can be a savior in need. With these cards you can transfer existing credit card debt to a new card with an interest rate of 0% for a fixed period, which may save you hundreds of pounds in interest.
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However, there are some crucial rules to follow to get the most out of these deals:
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Always pay the minimum monthly reimbursement. Missing a payment can lead to your 0% interest agreement being lost, receiving fines and your credit score is damaged.
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Delete the debt within the interest -free period. Make sure you can pay the full balance of 0% within the time frame after the promotion period has ended.
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Do not use the card for new purchases. The 0% deal usually only applies to transferred baldi, and the use of the card for new expenses can lead to substantial interest costs.
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Check your credit score. The best deals are often reserved for people with strong creditworthiness, so it is worth checking your score before applying.
Kate Steere, a credit card expert at Personal Finance comparison site Finder.com, said: “There is currently healthy competition on the market transfer market and you can grab almost three years at 0%, on condition that you do not mind paying a balance transfer costs.
“The longest 0% offers always come up with these painful, percentage-based balance transfer costs. So if you are looking for a balance transfer and don't think you need such a long period to erase your card debt, first consider the longest no-fee deals (Barclaycard (Barclaycard (Barclayard (Barclayard (Barclayard (Barclayard (Barclaycardard (Barclaycardard (Barclaycardard (Barclaycard [BARC.L] Currently, 14 months without transfer costs). But if you know that you need longer to delete your debt, then it is worth taking a slightly shorter 0% term to get a lower balance transfer. “
With a purchase card of 0% you can make new purchases without paying interest for a fixed number of months. This can save you thousands compared to the use of a standard credit card, assuming that you pay off the balance during the interest -free period.
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These cards are perfect for planned, necessary purchases. See them as a tool for managing large purchases such as a new TV or essential housing improvements.
Suppose you get a 0% purchasing card with an interest -free period of 10 months and spend £ 2,000 on new devices. If you pay back £ 200 every month, you knew the fault before the interest starts. However, if you still have a balance after the 10 -month period, you start building interest at the standard rate, which can be up to 27% annually.
Main points:
1. Make sure you pay at least the minimum every month to retain the 0% deal.
2. Only borrow what you can repay comfortably within the 0%period.
Steere said: “TSB currently has the longest 0% purchase agreement on the market after 25 months, closely ahead of M&S (MKS.L) and Barclaycard for 24 months at 0%.
“If you are planning a large edition, such as a summer vacation or some new garden furniture, the current reach of 0% purchasing cards can offer a handy way to distribute the costs. None of these cards has an annual costs, but they all return to very standard (read 'punishment') rates after the 0% period. If you have not taned up on one balance, look at one on one, look on one, looking at one time,” look on one on one “looking at one” looking at one, “look on one” looking at one, “look on one” looking at one, “
A cashback credit card rewards you with a percentage of your expenses, so that you effectively give back part of what you spend. For example, if your card offers 1% cashback and you spend £ 100 on groceries, earn £ 1 back. This cashback is usually credited to your account or added to your statement.
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Things to pay attention:
1. Limits: Some cards take the total cashback that you can earn.
2. Introductory offers: Cashback rates can only apply for the first few months.
3. Limitations: some cashback offers are limited to specific purchases or retailers.
4. Minimum expenses: Some cards require you to spend a certain amount to be eligible for cashback.
Steere said: “Amex (AXP) is currently offering the highest introductory cashback rate: 5% (up to £ 125) for the first five months. After the five months you can earn 0.5% running cashback with the daily Amex (1% on annual expenditure more than £ 10,000) or you can upgrade the first year (£ Cashback -Cashback -Cashback -Cashback -Cashback -Cash Back -Cash Back -Cash Back -Cash Back -Cash Back -Cash Back -Cash Back -Cash Back -Cash Back is 5% (up to £ 125) for the first year) for the first year (£ 25/year. Three months.
“Afterwards you can earn 0.75% continuous cashback – the extra cashback that covers the map costs as soon as it goes back into account, provided that you spend £ 10,000 on the map annually. If you immediately want a welcome bonus, Prime members can get a £ 50 Amazon Welcome Card with the Amazon with the Amazon.”
If you travel often, a credit card for aerial mining can help to lower the costs of flights and even unlock benefits such as flight upgrades and hotel enclosures. By using these cards for daily purchases, you can earn points that can be exchanged for flights with the loyalty program of your favorite airline.
How it works:
1. Earn miles: points are usually earned based on the amount you spend and the class of your ticket – Premium tickets often earn more points.
2. Exchange points: You can use points to cover the costs of flights or upgrades, although taxes and reimbursements can still apply.
Steere said: “For large rewards, the British Airways (IAG.L) offers American Express Premium Plus Card 30,000 Avios when you spend £ 6,000 in three months, while the Barclaycard Avios Plus card gives 25,000 Avios for publishing £ 3,000 in the same period.
“Virgin Atlantic fans can earn 18,000 points with the Virgin Money Virgin Atlantic Reward Plus Credit card by making their first purchase within 90 days. Remember that the cards with the largest introductory remuneration offers are also those with the greatest annual costs.”
Plan a trip abroad? A specialized travel credit card can save you a bundle by offering almost perfect exchange rates without the usual foreign transaction costs.
Most credit cards and payment cards charge around 3% for foreign transactions, which means that a purchase of £ 100 abroad can cost you £ 103. Moreover, some cards add a fixed amount for each overseas transaction.
Seeing specialist travel cards abandon those costs, so that you can spend abroad at the same rates that your bank will receive.
Read more: How you can use your Avios points for more than airline tickets
Main points:
1. Avoid cash recordings, because they often come up with reimbursements and interest.
2. Use the map for expenses abroad to enjoy almost perfect exchange rates.
Steere said: “If you are getting ready for the holidays, there are currently great offers to help you to prevent currency conversion costs abroad, and you can even earn cashback for your expenses (at home or abroad). Make sure you pay your card fully every month to prevent them from paying interest (which will come to cashback soon).”
Disclaimer: The pronounced opinions are only the author (unless stated otherwise) and are not provided, approved or otherwise approved by the stated providers. Yahoo does not earn committees from the money lenders, or another third party from the content in this series.
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