0% Credit Cards in the UK

How Do Credit Cards Affect Credit Rating?

According to many financial advisors, most people have trouble handling credit cards. Running up credit card debt is a sure way to negatively affect your credit rating. A recent survey showed that most people carry between five and ten credit cards. Some people have more than 15! A general rule, say some financial experts, is to have two to six credit cards. The fewer the better, although you do need to have some to keep up a good credit score. Too many, though, and you will lose credit points.

The problem that most people have with credit cards is that they run up their cards to the maximum limits. Then, they need another card to charge on, so they get a new card. People keep going until they run their credit score down so low that they can’t get another card. You should always try to stay as close to zero balance as possible each month on each card. You can use your credit cards for purchases; just remember that you must pay off the balance before the interest charges start to accrue.

You should try to keep your store credit cards down to one or two at the most. Each time you open a store charge card you lose about 20 points off your credit score. If you must have a department store card, choose wisely. Many stores have special offers and coupons limited to their credit card users as an incentive to keep their card.

Some people think that the more credit cards they have the better. This is simply not true. You are most likely going to hurt, rather than help, your credit score with each additional card. The credit scores take into consideration how much credit is allowed and how much of that credit is used. They see how long you carry a balance. Paying the balance down monthly gives good credit points. Keeping a high balance on one or more cards makes your score go down. Having credit cards that you don’t use also will end up hurting your credit score. A general rule of thumb is to carry a balance not more than 50% of your total available credit. For example, if you have a credit limit of £5000 on a credit card, you should have a balance of no more than £2500 at any given time.

Eligibility for offers for 0% credit cards usually (but not always) depend on the credit score of the applicant. If you have a high credit rating, you're much more likely to qualify. It's worth applying, though, because usually they'll offer you a low-interest credit card even if you don't apply for the zero-interest offer.

Some of the top no interest credit cards offered in the UK include Citi Platinum Select Card, which offers 0% APR on balance transfers and purchases for a period of 12 months. They offer ?0 liability on unauthorized purchases and do not charge any annual fee. The 0% card has a regular APR of 10.74%. Chase Platinum Credit Card, too, offers 0% credit cards for 12 months or for 3 months, depending on the credit history of the applicant.

Blue from American Express features a 0% introductory APR up to 15 months and charges no yearly fee. The card's regular APR is about 11.74% and applicants do not have to have an exceptional credit record in order to get this credit offer.

There is also Blue Cash from American Express, which offers 5% cash back on all qualified purchases. This offer for their 0% credit cards is for six months and they do not charge an annual fee.

With Value Miles Platinum Visa Card, (a frequent flier credit card), the card holder can earn one value mile for every dollar spent. With 24,000 miles you earn can get an airline ticket for any nearby destination. They also do not charge yearly fees and the 0% interest applies to the first 12 months.

HSBC Platinum Master Card offers 12 months of 0% APR and it benefits include unlimited purchase protection and insurance for travel accidents. Their regular APR is 10.74%.

Citi Diamond Preferred Rewards Card offers a ?50 gift card and for every ?1 spent on purchases in drugstores, supermarkets and gas stations can card holders get 5 reward points and 1 point for every other purchase. Of a similar type is the GM Flexible Earnings Card, which offers 0% introductory APR for a year which presents a full one-percent cash back choice, otherwise the cardholder can choose a one-percent earnings towards any new GM vehicle.

Other companies that offer 0% credit cards also include Starbucks Duetto Visa for six months and Northwest Airlines- WorldPerks Visa Platinum Card, which has a credit line up to ?7,500 and a 15,000 miles annual WorldPerks travel reduction. The Northwest card does charge an annual fee of ?55, though.