Shopping at ASDA (the UK supermarket) with an ASDA credit card just got a whole lot cheaper with the introduction of a whole raft of new benefits which include:
• Customers will get 2p off every litre of fuel at Asda petrol stations if they use their card to pay.
• 5% off all purchases at standalone Asda Living and George stores.
• 0.5% cashback on every purchase made wherever the card is used and redeemed in the form of Asda vouchers
• There is also free delivery on all online purchases over the value of £50 made at asda.com.
The Christmas cheer is that all existing cardholders will have the new benefits automatically applied. New cardholders are also being offered a balance transfer offer of six months’ interest-free credit, but there is a 2%c charge on the amount transferred.
Purchase rates vary from 14.8% to 19.7% depending on your credit rating, with the typical rate standing at 16.8%.
(Via This is Money)
Christmas can be a difficult time to manage your finances prudently. However, there are some obvious but worthy tips that could just save you from financial meltdown:
1. Don’t spend more than you can afford.
2. Budget expenditure for your gifts, listing out how much you can afford to spend on each person.
3. One useful tip for uncles and aunties is to buy gifts for each others children only.
3. Use a price comparison site to get good deals.
4. There is some evidence to suggest that we spend less using cash so leave those credit cards at home.
5. Be aware that late payments on one card could result in rate increases on other cards due to a reduction in your credit score.
6. Don’t use credit cards to withdraw cash from ATM’s.
7. Pay your card off in full at the end of the month.
College debts can be a millstone around your neck so it’s wise to give careful consideration before using that credit card.
According to an interesting article at Central Michigan Life.
“College students often run into problems with credit card debt because they use them for everyday expenses,” said Charles Walmsley, financial planner and finance and law professor.
“The biggest mistake college students make when it comes to credit cards is living beyond their means,” he said. “They tend to spend more money than they have.”
Given that the average college freshman carries $1,500 worth of credit card debt, according to a 2005 study by student loan company Nellie Mae, and 56 percent of undergraduates have obtained their first credit card by the age of 18 this is a very real problem for many.
“Credit cards are very easy to acquire for college students, making credit card debt prevalent for them,” Walmsley said. “Credit card companies will relax credit standards to take on more customers at a higher rate, like college students.”
How true!
However with some prudent planning and shopping around you can keep your credit card debts in check. Here are some key tips:
Read more...
If you own a credit card in the UK then here is some info you should know.
1. There are over 500 branded credit cards available in the UK.
2. All available credit cards are operated by three networks - Mastercard, Visa and American Express.
3. All credit card applicants have their credit ratings checked through agencies such as Equifax and Experian.
4. Things that can act for your application include: paying back debts on time, long stable relationships with banks.
5. Things that can act against your application include: County Court Judgements against your name, frequent changes of address and no credit history.
6. Credit cards can start charging either at time of purchase, or time of debit or even from the date on the statement. (Something to be aware of when signing up to your chosen provider).
7. Repaying your account in full can mean that the next month is interest free up to a certain level.
8. Very low interest cards sometimes have a sting in the tail. i.e penalties of up to £20 if the monthly payment is as much as a day late or your credit limit is exceeded.
9. Under the 1975 Consumer Credit Act, the bank issuing your credit card is held jointly liable with the supplier if goods bought on your card are shoddy, lost or not what you ordered - this applies to purchases between £100 and £30,000.
10. Goods bought on debit cards are not covered under the Consumer Credit Act.
11. Most credit cards claim to offer security against internet fraud. However, few providers point out that you are already only liable for up to £50 if your card is used fraudulently, unless you have been grossly negligent.
12. Some service providers, including theatres, taxi firms and ticket-booking agencies, levy a surcharge or handling fee for paying by credit card. This can be at any level they decide, but you must be informed before payment.
13. Using your credit card to withdraw money from cash machines can cost up to 1.5% in handling fees for each withdrawal.
14. Credit cards can be cheaper to use abroad than buying foreign currency. There are many cards that include a foreign usage charge on each purchase, however, currency exchange will be at a wholesale rather than a retail rate. Nationwide is one of the few providers to offer a credit card that does not attract charges abroad.
(Via Moneypages)
Andy Britchford at moneyfacts.co.uk offers a variety of options for those of us who pay credit card balances at the end of the month.
“As the problem of indebtedness in the UK worsens, every day we either see advertisements in the press for the ‘best deals’, or have our door mats littered with ‘tempting deals’, with every company seeming to boast that it has the best credit card, loan rate or debt management solution.
“But not everyone uses a credit card in the same way. Many consumers don’t ‘carry over’ a monthly balance on their credit card, and therefore do not pay any interest charges. For these customers, the features they look for in a credit card deal are very different.”
“As the interest rate is not an important factor for those repaying their balance in full every month, the number of interest free days, donations, loyalty schemes and cash back deals are more likely to influence their choice of plastic. Of course these additional features would probably appeal to the majority of consumers, but for those holding a balance the number one priority must be to secure the cheapest deal in terms of interest rate.”
“Today, around 80 ‘incentive ‘ based credit cards are available, offering a variety of loyalty reward schemes and cash back deals. If you can be disciplined enough to use your credit card for your day to day purchases, while keeping the money aside to repay your statement at the end of each month, then it can be a win win situation. The beauty for the savvy consumer is that they can earn interest on the savings for that month, as well as receiving cash back or incentives ‘free of charge’ from your credit card provider.”
“So, if you are one of these customers that credit card companies make no money from, what deals are available?”
“Typically on a cash back deal, you can expect to receive between 0.5% and 1% of your credit card spend. So spending £10K on your credit card during the course of a year could earn you £100, not a bad return for doing nothing!”
“Loyalty schemes vary between lenders, both in the collection of points against spend and also in the conversion rate from points to value of goods. But it is important to remember that loyalty rewards are only good if you use them, there is no point choosing the highest reward scheme if the points can not be redeemed with retailers which you would use.”
“If you are not someone who pays credit card interest, why not take the opportunity to make some money from your card provider; after all it’s nice to be able to turn the tables every now and again.”
