The so called 'tailored' cards. (Credit Cards in general)

Member Name: ADBoyce

Product:	Credit Cards in general
Date:	21/02/02 (112 review reads)
Rating:

Advantages: Cant think of any!

Disadvantages: Can be very expensive, Uncompetitive

Anyone looking to change their credit card will no doubt have been deluged with a mass of offers of low interest rates, free gifts and cashback. More recently we have seen the emergence of so called ‘tailored’ cards – the type that allows you to choose your interest rate, annual fee and incentives. Easycreditcard.com and Virgin are one of the first to offer such a facility.

Sadly these cards aren’t all they appear. For instance – someone like myself who tends to pay off their balance each month would be interested in a card that gives them cashback on their purchases. Basically this means that for every £1 you spend on your card they will give you a percentage of that back at the end of a fixed term (usually a year or six months). On my American Express ‘Blue’ card for example I get 1% back and they can be a bonus if you pay the balance in full and avoid interest charges.

On the tailored cards in particular this is one of the features you can request with the catch being that the interest rate is much higher. Easycreditcard.com offered me a card with the maximum cashback set at 0.8% and a staggering interest rate of 19%. For my American Express card I get an interest rate of 15% and cashback of 1%. So you can see how ‘tailoring’ your card can lead to you being ripped off.

The other downside is that you may be charged an annual fee on top of a high rate of interest and absolutely no cashback whatsoever. Most cards have done away with annual fees given the number of credit card providers in the market today. And you don’t have to look far for cheap interest rates on balance transfers with almost every card offering a low rate to entice you to sign up.

My American Express card is by no means perfect but it is ideal for my needs and an additional, albeit small, income on my spending. The moral of this story is that you ought to do your sums and make sure you choose a card tha
t you think is tailored to your needs. Not what the credit card company thinks is best suited to your needs.

Summary: