In the last ten years, the credit card business in the UK has grown so much that there are now more than 1,300 credit card companies. Still, once we choose a credit card company in Britain, we rarely change. This is the same as any other time when credit cards have been around. This does make you wonder, "Is your UK credit card doing you any good?"
Interest rates that are competitive
With the recent Office of Fair Trading report on UK credit card companies charging too much interest and fees, many UK credit card companies are now having to look at the interest rates they charge. Because of this, you can get interest rates that are very low right now if you use a credit card. Don't get left behind. Make sure your credit card company gives you the best interest rate on the market.
Minimum fees
Some credit card companies charge their members a fee every year to be a member. Others charge them what are called "hidden fees" if they don't pay their bills on time, use an ATM to get cash, do business overseas, etc. But because business is so competitive right now, you should be able to find a company that will give you a credit card without making you pay these fees.
Make the most of your credit card's loyalty programme.
Nine out of ten UK credit card holders now choose a credit card company with a loyalty programme they like. But more than one in five of us forgets to use our loyalty points when we should. It is thought that this will cost credit card users a net of GBP50 per new credit card. If you don't get the most out of your loyalty programme, you're not getting the most out of your credit card, and your credit card isn't doing you any favours.
If you need to, you can move your credit card balance.
Credit card companies have figured out that people transfer balances from one credit card company to another to take advantage of special introductory offers. But if you're one of the 6 out of 10 Britons who carry a credit card balance from month to month and have to pay high interest, and you haven't checked to see if you could reduce this burden by transferring your balance to a promotional programme with a lower interest rate, then you're not making the most of your credit card.
Be willing to check out your rivals.
Lastly, whether you pay off your credit card balance on time at the end of each statement payment day or you carry a balance from month to month, the most important thing about using credit cards in the UK today is that you learn about what is going on in the UK credit card industry and that you are willing to switch providers to meet your specific credit card needs. In short, staying with the same credit card company for your whole adult life is a thing of the past, just like staying with the same employer your whole life.
