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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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There’s no harm to owning a credit card. If there’s a will, there’s a way and so, if there are any to disadvantages to owning a credit card, if proper methods for prevention are taken, all those disadvantages would cease to exist.

And it’s true. This is no article that mainly discusses the good things about a particular object or item then discarding its disadvantages. We are aware that there could be potential risks involved in owning a credit card but we also know that these risks could be minimized if the user takes the necessary courses of action.

But first, let’s talk about the good things when it comes to owning a credit card. First and foremost, it’s a sign of independence and having made your mark in this world. Applying for a credit card and getting approved is no easy task. There are hundreds of credit applications that get turned down everyday so if you’re one of the lucky ones to get approved and have your own credit card, see that as an advantage already.

Secondly, owning a credit card helps you become financially prepared for any accident, emergency or unexpected occurrence. It doesn’t matter what the event is all about - what matters is that the event requires or obliges you to spend money, money that you don’t currently have! But with a credit card, those kinds of worries are over.

Thirdly, owning a credit card finally allows you to spoil yourself once in a while. Leading a Spartan existence is good once in a while as well but it wouldn’t do at all as a life sentence. Thanks to the hectic and frantic pace of life nowadays, people have a more urgent need to unwind and relax more than ever. You wouldn’t be able to do that if you’re cash strapped. But if you have a credit card ….well, the sky (which could be the equivalent of $5000-$100000, depending on your credit balance) is the limit!

And the bad side to credit cards?

Because owning a credit card does allow you to spend more than you can afford to at present, you risk losing yourself to more debts. If, however, you exercise the right degree of caution and self-discipline, this reality shall never be a part of your life.

Also, although you’re certainly allowed to spoil yourself with your credit card, do make sure that you do so sparingly and only when you deserve to treat yourself truly. Remember, it’s better to savor things so use your credit card only when the situation warrants it.

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

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What Is Phishing?

All new technologies come with their drawbacks and it is no different with credit cards. One of these drawbacks goes by the name of Phishing. When a person uses a fraudulent email or online shopping site to get hold of information about your credit card or bank, it is called phishing.

Phishing is easy which is why it is so popular with thieves. In the first instance, it begins with a cleverly phrased email that seems to come from your credit card company or your bank. It usually asks you to provide confidential details for verification. It may also threaten to close your account unless you give the necessary information. Another popular method is to set up fake shopping websites that only accept online credit card payment. You will never get the goods that were displayed. If you comply in either instance, you will end up with a highly inflated credit card bill and a sadly depleted bank account statement.

How To Protect Yourself From Phishing?

The best way to protect your credit card from phishing is to reveal information only after cross checking. Often, all you need to do is contact the concerned bank or company and confirm the email. A detailed scrutiny of the email before dashing off a reply also helps. Such emails usually do not have a salutation like ‘Dear Customer.’ The name of your Credit Card Company or bank will also be spelt incorrectly. Since anti-phishing scanners search text messages, phishers may enclose the message as an image. If your credit card requests are contained in an image, be doubtful.

In case of online shopping sites, beat the tricksters at their own game. For a first time purchase, use a credit card that is about to expire and has minimum credit. If the purchased item does not land at your doorstep within the promised time, at least your losses will be limited and you can be sure that the information cannot be used to perpetuate a bigger fraud.

Zack Nelson recommends Find Credit Cards to find a Chase rewards card.

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