There are numerous credit card and current account deals on offer to choose from and it can be a daunting task to find the one that suits you best. For those with access to the internet there are many useful money comparison websites. For those who do not have access to the internet many Sunday Newspapers have a Money Section which list the best deals, however these are not as comprehensive as the internet listings.
Before searching for the best deals it is wise to consider exactly what your requirements are to enable you to narrow down the selection available to you. When searching for credit card deals there are a number of different incentives depending on your circumstances..
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9% and for the initial transfer there is a charge of 2.99% of the balance you are transferring.
Low interest cards are useful for those people who rarely pay off their balance each month. These deals often do not incur a monthly fee and the interest rate usually applies for the life of the card giving the additional benefit of assisting with budgeting.
For example, Sainsbury’s Bank offer a card with a representative APR of 6.9% (variable according to your status). There is a minimum monthly repayment rate of 2.25% or £5, whichever is the largest. Additional benefits of the card are double Nectar points on Sainsbury’s shopping and one Nectar point for every £5 spend on the card elsewhere.
Cash back cards give the benefit of earning money on purchases and are of more benefit to those who pay off the balance each month. These deals often charge an annual fee but if you repay the whole balance each month you earn back a percentage of your monthly spend. Sometimes this reward is in the form of vouchers or is limited to particular types of purchase, but it can be in cash. The frequency of the reward can also be variable between providers.
For example, American Express offer a card earning 5% cashback on purchases up to the value of £2,500 in the first 3 months which reduces to 1.25% cashback after 3 months. If you spend over £10,001 in a year they also give 2.5% cashback in your anniversary month. There is annual fee of £25 and you must have a household income of at least £20,000.
For those people who have a poor or no credit history there are credit-builder credit cards which are specially designed with the intention of helping to improve credit ratings. These usually have a lower credit limit and a higher interest rate than standard credit cards. Also in this category there are prepaid cards which can be used by those who want to limit their spending and by those travelling overseas. There is no borrowing involved and no interest charged in using these cards as the money is pre-loaded onto the card.
For example, for those with credit problems, an aqua card has a credit limit of £100 to £1,200 which can be increased...