The Best Credit Card in the World...Ever! (Credit Cards in general)

Member Name: lasagne5

Product:	Credit Cards in general
Date:	27/10/01 (147 review reads)
Rating:

Advantages: helps you out when you're skint, Cards can help you delay payments if you're sensible , Knowledge can make them a useful tool

Disadvantages: Too tempting, A minefield if you're not prepared, Deals are very hard to undestand

So who has won this prestigious accolade?

Could it be Barclays? MBNA? Egg?

It’s all up to you because believe it or not by the end of this op you will be able to decide on the best credit card in the world for YOU. Credit cards can have different effects and impacts on us individually. What works for one person does not work for another – you know this, but what don’t you know? Please note this opinion focuses on changing your credit card or choosing when you have already borrowed before. If you haven’t had one before I would recommend seriously considering whether you want one, and get sound financial advice first. Think about your situation before taking on new cards, the CAB are fantastic as are many official web sites for getting decent advice about credit. Please please please read it.

WHO AM I TO TALK?
I do work for a certain financial company who gets a slating on this site but the benefit of this is that I know what people like and what they don’t like. I’ve also helped thousands of customers who weren’t happy through working in the complaints department! A lot of the cases are where customers do not thoroughly understand what credit cards are and how they work. They invariably complain about things that they could have found out about in the teeny tiny terms and conditions before signing up. Ho hum. So more on avoiding this kind of shenanigans (opinions on the correct spelling of this word would be appreciated and I really like it!). I have also just changed cards using my experience rather than just the fact that I had a graduate card with a bank and stayed with them for the credit card. I have ended up with a low rate – a cracking a full term Balance Transfer rate and free travel insurance.

WHAT IS SHE TALKING ABOUT - (JARGON BUSTING):
These are basic descriptions – read terms and conditions of cards for full details.

Balance Transfer or 'BT&#
39; – Move existing credit card balances to a new credit card
APR – the total cost rate of borrowing the money including interest rate any annual fees etc. It is shown as a percentage rate.
Interest Rate – This is the rate at which you will be charged on balances that are not fully paid off each month. These can be fixed or can be variable (changing with the economy –watch out for this).

These are just some of the terms you may have seen but getting used to a few more is so useful – don’t just ignore things you don’t quite understand – it could ruin your year complaining about them!

SO WHAT CAN YOU USE TO CHOOSE?

Get lots of info on various products – I find the Internet is best for this. I used a web site called Moneysupermarket.com who ca, from the name and type of your card give you a list of the top cards on their criteria and the savings you could get on your current rate. Most newspapers do comparison charts of credit cards in their weekend editions. These give you rates and telephone numbers in most cases. Collect the junk mail you get from credit card companies – on this occasion it could be useful.

HOW TO CHOOSE FOR YOU
If you’re new to Credit Cards be careful of trying to get a cheaper card – it could be difficult if you don’t have much of a credit history. To use this and other comparison sites to your best advantage, don’t just pick the one that appears to give the best savings. There could be hidden costs in doing this. Use the following criteria as a good basic guide and you will feel more informed and confident. I am not a financial advisor but these guidelines are easy basic steps that you can follow and I have tried them out! In my opinion these are what are commonly missing from most credit card ads and leaflets.

LASAGNE5’s GOLDEN RULES

CHEAP INTRODUCTORY BT RATES
GOOD IF - These are great f
or those with high balances and an intention to pay them off soon. You can use the money you save on paying interest to pay towards your balance and have a good go at clearing it altogether. Really good if you don’t intend using it for any new spends.
BAD IF- You really can’t see yourself paying off your balance in the near future. In the set number of months the BT rate reverts back to a standard rate that could be loads higher and you’d see a big rise in your bill. Don’t use this method if you want to make your balance bigger during the sales – you will get charged the standard rate for new purchases that can often be high to balance out your good intro rate. WATCH – some firms have their BT rate in big letters on their advertising only to hide their 17.9% standard rate in the small print.

CHEAP LONG TERM RATES
GOOD IF – You are a regular spender who clears off their balances every month and the rate doesn’t bother you or even if you are a bit of a spender. These companies can however have steep fees for late payment etc so don’t let those spoil your fun! Also good if you don’t have a balance to transfer from another card.
BAD IF – You don’t have much of a credit record – i.e. you have been bad at paying in the past – you don’t have any well kept credit card accounts or you have other features on you credit record that don’t meet the company’s criteria. Companies offering cheaper rates often offer higher priced product to these customers to balance out the risk of taking you on. You may apply for these and end up getting a different card because of your circumstances.

BT RATE FOR THE TERM (OR UNTIL YOU PAY IT OFF)
I have just got one of these. They charge a slightly higher rate than the cheap BT rate schemes but, it lasts for the time it takes you to pay off the balance transfer (not just a few months). On mine both the BT and Sta
ndard rates are lower than high street banks.
GOOD IF – You have a balance to transfer and don’t see yourself paying it off to quickly. You also intend to put more on it at Christmas or whenever!
BAD IF – you want to pay off your Balance transferred amounts quickly without charge and spend very little after that.

FEES and TERMS AND CONDITIONS
Don’t wait til you have got your card to check out the fees and terms – they are interesting reading and include a glossary – get to know what you’re letting yourself in for - don’t be a complaints department regular! You look and feel daft if you sign a piece of paper without fully understanding it. It’s an expensive mistake. Ask for advice if unsure.

EXTRA GOODIES
PAYMENT PROTECTOR
GOOD POINTS – Insures you against redundancy, illness and other financial difficulties to ensure your credit card gets paid in these circumstances.
BAD POINTS – can cost around 69p per pound you add to your balance. It’s an extra aspect to consider.

CARD PROTECTION PLAN
GOOD POINTS – I love this for when I travel – the company records the details of your cards, passport, driving license etc. If you lose any of these while travelling you call one number and they cancel and reorder the lot where agreed.
BAD POINTS – Again it’s an extra cost but if you want to secure you cards it’s a good idea. You may never end using it. I’ve had it two years and used it twice. Prices vary.

OTHER GOODIES
Look for travel discounts, charity donations, designs, Loyalty points for shops, services etc. You may have some priorities in this area too.

DOOYOO IT!
Once you’ve eliminated all the above – check out the consumer opinions from dooyoo – they are well written and accurate – even the angry ones – every opinion counts!

So don’t ig
nore the stuff in small type. It’s more important than the BIG stuff. I hear some of you saying “Okay Lasagne, stop pressing the patronising button” but why do I see so many of you getting in such a mess over this? Avoid it, get wise to it. If you have to use credit use it to your advantage.

Summary: