Credit Cards – The Basics
In the UK alone there are over 40 million UK credit cards in use, with their cardholders using them to purchase goods, services and tickets with ease and efficiency. UK credit cards operate on a revolving credit, which means that the cardholder can borrow up to his or her limit and repay their balance at their will, without previous permission. You can use UK credit cards to pay for a whole range of entities, either in person, over the phone or on the internet. UK credit cards are not only an excellent form of short-term borrowing but also a convenient method of payment and many now offer incentives to use them such as air miles and cash back. In addition to all this, you can also use your UK credit card to withdraw money from an ATM- not only in this country but all over the world.
The balance on your UK credit card will accumulate at a pre-determined rate. Interest will not accrue from the first moment you make a purchase- it is only after the interest-free, or ‘grace’ period, that the credit you have borrowed or spent will gather interest. You can read more about interest and other charges here. So, effectively, it is possible to use a UK credit card and not incur any additional charges, so long as you pay off your balance within the specified period. This interest-free period varies from provider to provider, but can be up to eight weeks.
In the past there were only two main providers of UK credit cards- Barclaycard and Access. Today, however, there are myriad UK credit card companies all battling for the top spot and your custom. The competition now rife in the market means that there is a whole variety of tempting deals available, with cards offering a range of different APRs and special offers. We have aimed at providing information about every facet of the UK credit card so that you can be confident that you are picking the right card for your individual needs.
