Tips on Picking the Best Credit Card Credit Cards

Tips on Picking the Best Credit Card

Most people will now use a credit card regularly. Some people will use them for everything they buy, some for online purchases only and others for a mixture of things. They can be a very convenient way to spend money as you do not have to worry about cash, most places will accept them and they can be more secure than other types of payment. Another advantage is that you do not have to pay for the items right away. You will not get a bill right away and then when you do, you have the choice of being able to just repay a small amount of money and then be charged some interest each month until you pay off the full balance or you can pay off the full amount at once. Credit cards do vary and it is worth looking at the differences between them so that you can make a good choice.

Interest rate and costs

The main thing that everyone will look out for is how expensive the credit card is. If you compare a selection of cards you will see that the interest rate charged will vary between cards. This is something that does vary though as lenders change their rates from time to time. Often this is in line with base rate changes, but it can be done at other times as well. This means that it is possible to find the cheapest card at one time but a year or so later it is no longer the cheapest. It is also worth looking at any other costs the card might have, such as late payment charges, yearly charges or things like this as these will change from card to card. It is not always that obvious what all of the charges are without looking at the terms and conditions. These can be complex, so it can be worth asking customer services if they could plaining explain to you what all of the charges are and how much they are.

Cashback or similar

Some credit cards have schemes where you can earn cashback when you spend money. This might be in the form of a cash credit to the account the following month or it could be in vouchers or something similar depending on the card issuer. These can be useful in some circumstances. These cards tend to be more expensive with regards to interest as the card issuer needs to earn more money to pay for the cashback. This means that if you are not intending or there is a risk that you will not repay the card in full, then you should think carefully as to whether the card is for you as it could end up being very expensive. If you always repay the balance in full then you could gain form having a card like this and it could be worth considering. Do compare the costs with other cards though and decide whether you are prepared to take the risk of dearer interest to gain a small amount of cashback. Also make sure that reward is something that you will use. If it is vouchers or something like that, only sign up if you normally would spend on that sort of thing. Obviously if it is actually cash, then you will be sure to find that handy!

Usability

It is worth checking to see where you will be able to use the credit card. Most types of cards can be used nearly everywhere, such as Visa and Mastercard but there are some which are less generally accepted. It is therefore wise to make sure that you do a bit of research and make sure that the card that you choose is accepted at the places that you want to use it.

Reputation of the lender

You may want to go with a lender that has a good reputation. It can be wise to go with one that you already trust or do some research and find out about the different lenders you are picking between. You might be wise to ask friends and family who they use and whether they would recommend them. You could also look at the websites of the various lenders and find out more about them as well as calling the customer services, to ask some questions and find out more that way.
Once you have done all of this research, you will be in a position to pick the card that you feels suits your needs the best. It is worth researching regularly though as when the rates change you may find that there are other lenders that can offer you a better deal. This might be that hey offer a higher cashback rate or that they have a lower interest rate and depending on how you use your card it is worth staying aware of what the rates are so you can get the best deals for you.

How to Pick the Best Car Loan for you Car Loans

How to Pick the Best Car Loan for you

If you need to buy a new car, but do not have the money to buy it, then you may need to look around for a loan. There are many different types of loans that you can use and it is worth knowing a bit about them and comparing them in order to find out which one will be the most suitable for you. A few examples are explained below.

Car loan from garage

When you buy a car from a dealer, whether a manufacturer or independent dealer they may have a finance scheme that you can use. It is worth checking these out very carefully as they can be expensive. Compare the rates with a bank and see whether they are dearer. You may find that some seem very cheap or even interest free, but it is worth making sure that you are aware of all costs. There may be fees for setting up the loan or very high costs if you miss a repayment. So make sure that you are not just tempted by the interest rate but that you look into all of the details. This is true of all loans, whether from a dealer or not so you need to be careful whatever type of loan you are looking at.

Personal loan

If you go to a lender for a personal loan it could be cheaper for you. This will especially be true if you have some collateral to offer against the loan, especially if you have bad credit such as the car or your home. Although there is then a risk that you might lose the item if you do not keep up with the repayments, it will keep the cost down. Personal loans vary a lot between lenders and so the price will vary too. Also if you have a favourable credit record then you could get offered a better rate compared to someone without such a good record. If you compare the advertised loan rates and do not have a good credit record, you could find that you will not be offered such a good rate.

Overdraft

An authorised overdraft is not usually that big although an unauthorised overdraft can give you more money. If you are only buying a cheap car, then you may find that you have enough money to be able to pay for it this way. However, it is worth bearing in mind that an unauthorised overdraft can be one of the dearest ways to borrow money as you tend to get charged fees as well as interest. Unless you are sure that you can pay it back really quickly or you have no other option, then this is probably an option well worth avoiding.

Credit card

A credit card can be a good way to pay for a car, particularly if you have an interest free card. Do be careful though as car dealers will often charge extra money if you pay by credit card. Ask them first to find out and then you can decide whether you think that it is worth it or not. Of course, when you pay with a credit card you will get a certain amount of time when you will not have to pay any interest. However, after a while you will get a bill and you will be able to see how much interest you will have to pay if you do not repay all of the money that you borrowed. This charge on a credit card can be quite high compared with a loan. It is worth finding out how much it will be and working out whether it will be better for you to look at an alternative option.

As you can see all loans can be expensive although some could be cheaper than others. Once you have a loan it is wise to keep looking around for cheaper options as you could pay off one loan with another and save money, but they could be penalties associated with paying loans off early so you will need to check this out as well.

A better solution altogether could be to not get a loan at all but to save up the money for a car. This is not always possible, if your current car is no longer drivable but, if your current car is still good enough to drive, then it could be wise to just keep it for a bit longer and save up some money. Even if you only save part of the cost of a new car it will mean that you will not need to borrow so much money and therefore the loan will be cheaper. Try to put aside at least the amount that you would be repaying on a loan each month, as you would have had to find that money anyway. If you can save even more, then that is even better and it may not even take that long before you have enough to buy a car outright.