In-depth guide to Credit Cards and how to use them
- 5 years ago
This video explains how credit cards work and how to stay in control of them.
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▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Rebuild your credit rating using a Vanquis card: https://www.solution-loans.co.uk/credit-cards/vanquis/
- Would a balance transfer credit card make sense? https://www.solution-loans.co.uk/blog/balance-transfer-credit-card-make-sense/
- How to protect yourself from credit card fraud: https://www.solution-loans.co.uk/blog/how-protect-yourself-card-fraud/
- Are you using the wrong credit card? https://www.solution-loans.co.uk/blog/using-wrong-credit-card/
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▶️ VIDEO TRANSCRIPT
Credit cards are one of the most flexible forms of unsecured finance and are used by millions of people worldwide every day. They are not the same as debit cards – which are used to pay for goods and services by withdrawing money from your bank account. Every time you use a credit card – whether you are buying something, withdrawing money from a cash machine or making a payment – you are borrowing from a finance company.
The flexibility that credit cards provide comes from how you choose to manage your repayments. A card holder can choose to repay the entire balance every month, meaning that he or she will not face any interest charges, or ‘rollover’ the balance and make only the minimum payment or a large part of the balance.
When you successfully apply for a credit card you’ll have access to a predetermined credit limit. You’ll be able use the card at any shop, merchant or trader which displays either the Visa or Mastercard logo. You can continue to use your card up to your credit limit provided that you make at least the minimum monthly payment.
The flexibility that credit cards offer comes from the way that repayments work: a cardholder will generally receive a bill and be given a set amount of time to make a repayment which can be up to 45 days after they used the card. If you use this to repay the entire balance of your card, then you are in effect taking advantage of a month and a half of interest-free credit. This does not include cash withdrawals made on the card which usually attract a cash advance fee and are not included in any 0% offers.
If you use a debit card a lot, you may find that there are more benefits from using a credit card if you are sensible and repay what you owe on it every month. Not only will you get up to 45 days of interest-free credit, but in a lot of cases your purchases will be protected under Section 75 of the Consumer Credit Act.
------
▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Rebuild your credit rating using a Vanquis card: https://www.solution-loans.co.uk/credit-cards/vanquis/
- Would a balance transfer credit card make sense? https://www.solution-loans.co.uk/blog/balance-transfer-credit-card-make-sense/
- How to protect yourself from credit card fraud: https://www.solution-loans.co.uk/blog/how-protect-yourself-card-fraud/
- Are you using the wrong credit card? https://www.solution-loans.co.uk/blog/using-wrong-credit-card/
------
▶️ SOCIAL
Like us on Facebook: https://www.facebook.com/SolutionLoanUK
Follow us on Twitter: https://twitter.com/solutionloansuk
Follow us on Instagram: https://www.instagram.com/solutionloans/
Website: https://www.solution-loans.co.uk/
Subscribe to our YouTube channel: http://bit.ly/solutionloansYT
------
▶️ VIDEO TRANSCRIPT
Credit cards are one of the most flexible forms of unsecured finance and are used by millions of people worldwide every day. They are not the same as debit cards – which are used to pay for goods and services by withdrawing money from your bank account. Every time you use a credit card – whether you are buying something, withdrawing money from a cash machine or making a payment – you are borrowing from a finance company.
The flexibility that credit cards provide comes from how you choose to manage your repayments. A card holder can choose to repay the entire balance every month, meaning that he or she will not face any interest charges, or ‘rollover’ the balance and make only the minimum payment or a large part of the balance.
When you successfully apply for a credit card you’ll have access to a predetermined credit limit. You’ll be able use the card at any shop, merchant or trader which displays either the Visa or Mastercard logo. You can continue to use your card up to your credit limit provided that you make at least the minimum monthly payment.
The flexibility that credit cards offer comes from the way that repayments work: a cardholder will generally receive a bill and be given a set amount of time to make a repayment which can be up to 45 days after they used the card. If you use this to repay the entire balance of your card, then you are in effect taking advantage of a month and a half of interest-free credit. This does not include cash withdrawals made on the card which usually attract a cash advance fee and are not included in any 0% offers.
If you use a debit card a lot, you may find that there are more benefits from using a credit card if you are sensible and repay what you owe on it every month. Not only will you get up to 45 days of interest-free credit, but in a lot of cases your purchases will be protected under Section 75 of the Consumer Credit Act.