Credit Cards
UK credit cards allow you to pay for goods and services by means of a credit account. The major Credit Cards used in the UK today are MasterCard and Visa who are the Credit card providers; you will receive your card from a supplier which may be a major bank or a company.
Your credit limit will be decided by your UK Credit Card supplier and you will be able to spend any amount up to that limit. You are under no obligation to pay off your Credit Card bill in full every month, and the user is permitted to simply make the monthly minimum repayment.
UK Credit Cards work on a basis referred to as ‘revolving credit’. Revolving credit permits the consumer to make repayments or borrow further within their credit limit without asking permission from the lender.
Many suppliers have special offers such as no interest for the first 6 months that you have the card or 0% interest on balance transfers and many find that by switching their balance from one card to another whenever an offer is coming to an end that they can pay little or no interest and save a lot of money.
Many people also however use their credit cards in more of a Charge Card fashion and pay off the balance in full every month in order to incur no fees, charges or interest. The reason for this is that many cards offer cash back or Air miles and people can earn money and rewards by using their Credit Card rather than their debit card or cash.
