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You may have heard one of your mates boasting that they’ve been approved for a platinum credit card and wondered exactly what all the hullabaloo and fuss is over. Usually, it means that your mate is to be commended for keeping his or her accounts well in order but aside from that, each company that issues cards has different standards and features for their platinum cards.

First, understand that most finance companies that issue credit cards have many different products. Each of them allows you to make purchases on credit, but they each have different features that are unique to that particular card. One may offer a lower interest rate, but trade it off with an annual membership fee, while another may have a slightly higher interest rate and no fee as well as discounts for purchases made a particular merchants. Many of these companies offer a platinum credit card that is loaded with features for their best customers.

Each company’s platinum credit card is different. In fact, many companies offer more than one version. In general, it has a high spending limit, low interest rates and special features that are designed to make it attractive to those who use often. Those features may include cash back, special rewards, membership in discount clubs or auto clubs and even special rates on automobile or life insurance. They also, however, often have an annual membership fee you must pay in order to keep your card, which may make them less attractive than a less prestigious card.

In other words, even though these types of cards often require impeccable credit, don’t automatically assume that a platinum credit card is the best card for you. Depending on your reason for wanting a credit and your circumstances, another type of credit card may be the better choice. If you’re carrying outstanding balances on other cards for instance, you may do better with a balance transfer card that offers 0% interest rates for balance transfers. You may find that an option that offers a discount on petrol prices is the best choice for you if you travel a lot, or you may prefer something that’s linked to your favourite charity.

Before you make your application, it pays to compare all the features and charges of one against another. At moneyeverything.com you’ll find listings of dozens of credit card offers from all the major companies in the UK. You can compare interest rates, annual fees, cashback and rewards and other incentives online to help you choose the best credit card for you.

Jon Francis has been involved in various areas with the world of finance and has a keen eye for a bargin! He has an in-depth knowledge of the credit card UK market and now helps others get the best from a credit card.

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1. What is a credit card?

   A credit card is a small plastic card with a magnetic strip that is issued by a bank or other financial institution. It authorises card holders to purchase services and goods on credit.

2. What kinds of credit cards are available?

   There are many kinds of credit cards available, but they break down into two different main kinds. Charge cards allow you to charge items to your account but expect that you will pay off your full balance each month, Credit cards also allow you to charge items to your account, but let you pay for your purchases over time and charge you interest on the outstanding balance.

3. What’s the best kind of credit card?

   There’s no single answer to that question, because it depends entirely on your circumstances. Only you can decide whether you’re better off with a low interest card, one that offers cashback or rewards, or some combination of those. In general, most people prefer a credit card that offers a low APR - but that may not be the best choice for someone who pays their balance in full each month.

4. What is an APR?

   APR stands for annual percentage rate. Credit card companies make their money in many different ways. One of those ways is by charging you interest on the money that you borrow to buy things. The annual percentage rate is the percentage of your outstanding balance that you’ll be charged in interest charges. If your APR is 12%, for instance, you’ll pay ₤12 interest per year on ₤100.

5. How do I get a lower APR?

   The APR that you’re offered is completely dependent on your credit score, the higher your credit score, the lower rate of interest you’ll be offered. If you have a record of paying your bills on time, you’ll be offered a credit card with a low APR. If you pay you bills on time and keep your accounts up to date, you’ll qualify for a lower APR in time.

6. What’s a secured credit card?

   If you can’t qualify for a regular credit card because of low or no credit, a secured credit card may be the solution that you need. You simply deposit a sum of money into a bank account with the bank that issues your card. Your spending limit will be a portion of that deposit. That money will remain in the account as security in case you don’t pay your account. If you make regular payments when they’re due, the issuing company will eventually approve a regular credit card for you.

7. How do I compare credit cards to decide which one is best for me?

   There are many different standards of comparison when you’re choosing a credit card - interest rates, annual fees, finance charges, penalties and late fees - even how your interest charge is determined. You can compare credit cards against each another at comparison websites where you’ll find all the information you need to compare credit offers from dozens of UK companies.

8. How do I apply for a credit card?

   Applying for a credit card online is easy, too. From the comparison websites you can just click on the offer that you’ve chosen to fill out a short application. In many cases, you can have an answer within minutes.

Jon Francis has been involved in various areas with the world of finance and has a keen eye for a bargin! He has an in-depth knowledge of the credit card UK market and now helps others get the best from a credit card. For more information visit http://www.moneyeverything.com

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