How to switch credit cards

Credit Cards No Responses »
Mar 092011

 How to switch credit cards

The best way to avoid paying interest on your credit cards is to seek the to use Balance Transfer offers, which offer interest free balance transfer offers.

  • The first step is to choose the credit card that’s suitable for you.  Once you’ve done this..you need to click through to the credit card company’s website to fill out the application form.
  • If your application for this credit card application is approved, you will receive your credit card through the post to the address you have given, followed by your personal identification number (PIN) and any additional credit card documentation such as terms and conditions. You should sign the back of your new credit card immediately and call the number on the front of the credit card to activate it.
  • If you are looking to transfer a balance from another credit card you are likely to have ticked a box on the application form letting the new credit card provider know this. Contact your new credit card provider with the details of the credit card or cards you wish to transfer balances from and the amounts you wish to transfer and they will set these up for you. Be warned that you should not try to transfer credit card balances yourself as this is likely to result in paying a much higher interest rate.
  • Keep track of your old credit cards. They won’t automatically be closed when you transfer a balance to your new credit card, so if you’re not going to use them again, it’s best to close the account and destroy the old credit card. You may also wish to set up a direct debit from your bank account to avoid missing any repayments on your new credit card as this may harm your
  • If you make any regular payments from your old credit card, remember to contact the companies you pay and give them your new credit card number and details

 

Posted by at 12:51 pm Tagged with: ,

Credit cards Pro's and Cons

Credit Cards No Responses »
Mar 032011
Before you think of having a Credit Card is is useful to look at their Pro’s and Cons
Pro’s
  • Free, short-term credit – as long as you always pay your balance in full by the due date shown on your statement.
  • Credit cards offer a safe and convenient way to pay for goods and services both in the UK and abroad, particularly if you are purchasing over the internet, phone or by mail order.
  • If you pay for something with a credit card, valued between £100 and £30,000, that turns out to be faulty or which you do not receive because the company goes bust, you can claim a refund from the card provider.
  • If you are the innocent victim of fraud you will not be expected to pay if a criminal uses your card, so Credit Cards offer you Protection against fraud.
  • Incentives for using a card such as loyalty points and cash back, or payments to support a charity.
  • Credit cards are accepted in virtually every country around the world and this cuts down the costs of changing your cash to other currencies and also is more convenient abroad

Cons

  • You incur interest if you are unable to repay your balance in full every month. Interest rates vary significantly so if you can’t afford to clear your debt you should look for a card that offers a competitive rate of interest.
  • The amount you can spend on a credit card is capped so you may not have access to as much money as you expected. Limits of between £300 and £500 are common for those who have never had access to credit before, while those with a good history who have shown that they use cards responsibly are likely to be offered a higher credit limit. That said, because of the credit crunch and rising levels of bad debt, providers are now more cautious about the amount they will lend. So even if you have a good track record with managing credit, you may be offered a significantly lower limit if you apply for a new card.
  • Most, credit cards will charge you if you miss the monthly deadline set for your payment.  The easiest way to avoid these penalties is to set  a Direct Debit from your current account
  • You will also be charged if you go over your credit limit.  So make sure you manage your Credit Card to ensure you don’t pay unnecessary interest.
Posted by at 11:59 am Tagged with: ,

Credit Card Fraud

Credit Cards No Responses »
Jul 262009

Credit Card FraudI had a worrying episode the other week when I lost my card but thankfully it turned up safe and well.  It got me thinking that even if you take every precaution to prevent your credit card from being stolen or misused, it can still happen.

Below is a list of steps that you can take in order to make the after event a little less painful.

  • Always keep a copy of you card’s emergency phone number so you can contact your card issuer as soon as you are aware that the card has been stolen or misused. Furthermore, keep the number separate from your card as you do not want the phone number to be stolen with the card!
  • Report any card theft to the police immediately. This can be inconvenient and time consuming, but it will simplify the process of getting the card issuer to refund any unauthorised use of the card.
  • If you are travelling abroad, make yourself aware of the card issuer’s procedures for dealing with stranded tourists. For example, Barclaycard will arrange emergency cash advances or replacement cards. 

The maximum liability on credit cards is usually £50 for fraudulent transaction made before the issuer is notified. Your liability is not limited if you have been grossly negligent, such as writing your PIN on the card, or if you have played a part in the fraud. Preventing your card from being stolen or misused is clearly preferable to the hassle and upset involved in dealing with your card being stolen or misused. Below is a list of measures that you can take in order
to help prevent your cards from being used fraudulently:

  • Keep an eye on your card when using it in a shop or restaurant, especially overseas. If an embossing machine has been used, ask for carbon copies and destroy them.
  • Never discard transaction slips which display the card number.
  • Never leave your card where the detail can be copied by a fraudster.
  • Check your transaction slips at the time of purchase, raising any discrepancies with the retailer.
  • Never write your card PIN number down or disclose it to anyone.
  • Ask the retailer to confirm the amount being debited from your card, including any delivery and booking fees, when using your card to pay for an order.
  • Check your credit card statement against the transaction slips you have accumulated through the month. If the transaction was not electronic, it is possible for mistakes to be made when your card is debited, such as transposing two digits.
  • Do not buy products and services from websites that do not use a secure serve to process credit card payments. A secured server is indicated by a small icon of a closed padlock begin displayed at the bottom of your browser.
  •  Never offer your card details to ‘cold’ telephone callers, i.e. anyone contacting you out of blue, even if they claim to be from a reputable company.
Posted by at 5:42 pm Tagged with: , ,
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