21. June 2014 · Comments Off on Credit Cards – What are the risks? · Categories: Uncategorized

Each month your card issuer will send you a statement detailing all the transactions you have made as well as the minimum amount you must pay and the date this must be paid by. You have to make sure you pay off at least the minimum amount on the card statement each month. If you do not pay off your balance each month, you will be charged interest on the amount remaining in your account. The rate of interest, indicated by the APR or Annual Percentage Rate can be very high. If you fail to meet the terms of the card and make the payments on time this will be added to the balance on your credit cards and you could be faced with having to pay interest on the late payment fee. To avoid this happening set up a direct debt that will always pay the minimum amount.

You should also watch out for hidden charges with credit cards. Some providers may charge you an application fee for issuing the card. Many cards also come with an annual fee which you have to pay simply for having the card. Lastly you may be charged for withdrawing money from cash machines so bear this in mind when comparing products. Every customer is different and will have specific requirements. As such there are many different types of credit cards available in the UK. Because all credit card providers will vary slightly, it is worth taking the time to find the one that best suits you. This will also alert you to some great introductory offers but make sure you are aware of what happens when this period ends. Comparing credit cards online is a really useful way of weighing up the main features and pros and cons of different cards.

Comments closed