Credit cards are a money source of getting your hands on that item in a shop window that you just have to have, but don’t possess the ready cash. Using the card will give you a personal loan on the spot, and offer you different ways to pay in whichever way suit’s your needs. All card issuers ask is that you pay a minimum of either 5% or £5 of the balance whichever is greater or to save incurring any interest pay off your balance in full at the end of the month if you have the funds to do so.

There are all different types of cards on the market, including Affinity cards that are affiliated to Charities, Football Clubs and Human Rights Organisations such as Amnesty International, who receive a donation every time that you use them, though be careful as these cards usually carry a higher interest rate than the usual cards.

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A spending limit is set when you first take out a card, of say £500 and then will be steadily raised if the credit card company feels that you are reliable with your payments and have the ability to pay.

The credit card is a god send at times but can also be a burden as the temptation to over spend is always in your purse or wallet, this of coarse can lead to not being able to pay of your card at the end of the month thus leading to interest being charged to your account, and will build up the longer it takes for you to pay the balance.

Competition is now quite fierce among credit card companies, with the influx of American cards that are now on the market, things such as the annual fee that was charged, usually in the region of £10- £15, has now been dropped by most companies and also offering such benefits as lower APR and 0% free periods for balance transfers and purchases, as they fight and scrap for the old and new customer.

If you are thinking of changing or taking out a card for the first time, then take your time and make sure that the card that you are applying for is the right one for you and suit’s your needs. Always read the small print especially on insurance that has been sold to you on the card, as it doesn’t always cover you for what you think it does, and maybe offers such things as holiday accident cover of £100,000, though if you went to an independent travel insurer who would cover you for up to £1 million, and with this added to your statement it can cost you even more in added interest if you haven’t got a clear balance.