Things You Should Know About UK Credit Cards
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)
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