June 01, 2010
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Danger Signs For UK Residents, Pt.2
The only real choice.If you are one of those cardholders using your credit card to bridge paychecks, there are some things that you can do to help keep you from getting buried in card debt. Let's begin with those credit card rewards. Begin by considering whether or not you will really take advantage of those rewards. For example, is your card racks up miles for traveling and you don't spend enough to earn a free flight, you are wasting your dollars. If your credit card offers you reward dollars to spend on merchandise that you will never use, you are wasting your dollars. If your card offers you reward cash back dollars that you can apply toward the debt, you could gain some benefit. However, keep in mind that you'll be paying interest charges that could offset the rewards. In most circumstances, if you do not pay your account balance off in full each month, the only real choice is the cash back rewards.
According to moneysupermaket, here's a look at the best credit card reward cards available to UK residents today:
American Express Platinum Cashback credit card gives a 5 percent cashback for the first three months and then 1.25 percent after the initial three months. If you don't pay your balance in full each month, this credit card offer will charge you an annual percentage rate (APR) of 19.9 percent.
With the Tesco Clubcard credit card, you collect points plus pay zero percent interest on the first 12 months purchases. The card also offers zero percent interest on balance transfers for the first six months plus a 2.9 percent balance transfer fee. After the initial promotional time, the Tesco Clubcard charges 16.9 percent on purchases and 18 percent on balance transfer balances. Cardholders have the flexibility of redeeming their points for purchases such as groceries and magazines. Again, you should consider if these points will pay off in the long run.
The best advice to all credit card consumers is to do your homework! Be diligent in seeking information on all your options to assist you in making the best choice for your personal lifestyle.