Embarassing moments with your credit cards

admin | January 13, 2010 | 0 Comments

All credit card users have had the experience in the past, ‘sorry sir/madam you card has been declined.

With the increase in credit card fraud, the credit card providers are increasing the number of safety checks for card users. If you do not use your card regularly for large purchasers, chances are when you do use it, it will be declined and if you are lucky you will get a phone call immediately from the fraud department and your card will be released for use. However at that juncture the damage to your ego would have been done.

The best way round this is to always call your bank or credit card provider in advance before using your card, even then they will not be able to guarantee it will not be declined as the system is an automated one and it studies your regular usage pattern.

Also if you used your cards during Christmas you are going to find that you are paying far more for your Christmas presents than anticipated unless you pay off the entire amount at the end of January.

I think the next 10 years is going to have a very low uptake on credit cards as more and more people realise if its not used as rolling credit only it becomes fantastically expensive.

The average credit card interest rate rose from 15.89 per cent to 16.28 per cent in December, according to the Bank of England.

The increase came despite the fact the Bank held the base rate at a record low of 0.5per cent over the same period.

The resulting gap of 15.78 per cent between the official bank rate and the average amount charged on credit cards is now the highest ever recorded.

Category: Credit Cards

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Instant decisions are available for Barclays current account customers who apply for loans online

Our personal loans could be in your account just three hours after you complete your application

Loans of £5,000 to £25,000 available online to Barclays current account customers

If you have your own property, why not see if our homeowner loan could offer you the funds you need? Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Loans and Credit Cards

Welcome to Loans & Credit Cards.Co.Uk.

Credit Cards should only be used as rolling credit to help you till the month end, where the full balance should be paid once you receive your salary. Credit Cards can be used for your daily usage.

Travel - NOT HOLIDAY but to work and back
Food & Drinks plus weekend entertainment
Your Sundry and Daily Usage

Credit Cards should not be used for

Expensive Digital Equipment, like huge flat screen TVs, expensive Cameras, Hifi Equipment, Leather Couches, Beds, Furniture, Shares, Short Selling, Long Selling, Forex, Online Bingo Etc. Do not use Credit Cards for bargains unless the interest paid on the borrowing is still lower than what the item cost.
Purchases like these should ideally be made via your Savings from your Debit Card or With CASH ONLY

Personal Loans should ONLY be taken to help you invest in items that will not depreciate in value. For example

Education
Property

Expensive vehicles should only be purchased with loans if the vehicle is very necessary in terms of added value to your business or abosolutely required for your job. Otherwise buy an old banger for the school run and sign up for the AA Home Repair and Towing Service. If the family needs to take a long journey for a holiday, you can always rent a reliable car.

Personal Loans should NOT be used for investment in a business unless you are absolutely 100% sure the business will make a return, if it is a risky business, or a slight hint of risk, you should only use surpluss cash you have saved to invest.

There are resources here to help you make informed decisions and also know the pitfalls of taking on too much debt. There are separate articles about people who have took on too much debt and their consequences.
This website also provides basic accounting and financial management information to help you plan your finances.

LOANS & CREDIT CARDS are useful financial instruments, but they need to be used wisely, if you are not sure, ask your grandparents.......

UK Credit Cards

The standard interest rate on UK credit card ranges anything between 8 per cent and 25 per cent. Nevertheless there are few credit cards available at a much higher rate. The cheapest credit cards are usually offered by companies which decide the charges based on your credit standing. They judge your credit standing looking at your financial history.

UK credit cards are one of the most useful and practical financela instruments if you’re disciplined and can handle them sensibly. However, they are the most expensive form of legal borrowing.

UK Credit Card debt is extimated to be approximate £1.5 billion pounds.
Those paying the miminum a month are expected to take 30 years to pay their debt back.

UK Loans & Mortgages

There are currently over 200 significant separate financial organizations supplying mortgages and loans to house buyers in Britain. The major lenders include building societies, banks, specialized mortgage corporations, insurance companies, and pension funds. Over the years, the share of the new mortgage loans market held by building societies has declined. Between 1977 and 1987, it fell drastically from 96% to 66% while that of banks and other institutions rose from 3% to 36%. The banks and other institutions that made major inroads into the mortgage market during this period were helped by such factors as:

Relative managerial efficiency
Advanced technology
Organizational capabilities & expertise in marketing
Extensive branch networks
Capacities to tap cheaper international sources of funds for lending