A reader asked: I’ve recently paid off my 2 defaulted credit cards and I have been paying into Loqbox for the past 4 months (£70). I got an email from Clearscore saying I can get a Capital One credit card. This is the first time in a long time that I have been offered a credit card because my credit has been so poor but it is slowly improving. Should I apply for this? If I do what is the best … [Read more...]
Articles about credit cards
Credit cards can be really useful but they can also be dangerous - if you just hand over that piece of plastic it can be too easy to run up bills which will take you many years to clear. So how can you make the best use of them? The articles here look at
make sure you get the benefits - practical steps you can take so that the banks don't make huge profits from you;
what's new and whats changing with credit cards in Britain?
too much credit card debt - how can you tackle it fast?
Barclaycard send letters saying they raised credit limits too high
In July 2020 Barclaycard sent out letters to some customers saying their credit limit may have been set too high. They say: We've recently reviewed the way we set some of our customers' credit limits and can see that the limit we gave you previously may have been higher than it should have been at that time. We are sorry this happened and recognise that this may have had an impact on your … [Read more...]
“What should I do when my 3 month credit card payment break ends?”
Ms D asked about her options now the three credit card payment break has ended: I’ve come to the end of my 3 month payment freeze and as the card lender has kept adding on interest I have gone over my credit limit, so the first payment due was nearly £400. I contacted them as I couldn’t afford that amount -my partner is self-employed and not receiving any income due to coronavirus. They agreed … [Read more...]
It’s harder to get good 0% transfer deals in 2020 – but worth trying!
For more than two years the 0% balance transfer credit cards on offer have been getting slowly less good. And there aren't so many, so they are also harder to get. This steady decline has not got a lot worse because of Coronavirus. You may have been shuffling credit card debt around for years with not much problem, but it is becoming harder. Banks are offering a lot fewer deals Two years … [Read more...]
COVID-19, financial decisions & those tricky exponential numbers
This is a guest post by David Steele, Policy and Research Manager at The Money Charity (currently furloughed). He was previously Policy Manager Financial Services for Age UK and Head of the Research and Statistics Unit at the UK Film Council. This blog is written in David’s personal capacity and does not necessarily represent the views of his current employer. With the Sunday … [Read more...]
How to choose between cashback/rewards/ 0% on purchases credit cards
A reader asked: Should I get a cashback card or one that gives you rewards? Or is a 0% on purchase card better? I will be able to repay in full most months I hope. The answer depends on what you want to use the card for... and if you really would be able to pay it in full every month. When is a cashback card better? If you repay the credit card bill in full every month then a cashback card … [Read more...]
“What’s the best way to clear credit card debt?”
A reader has a very common situation: I have £12,000 of debt on a couple of credit cards and a catalogue. Is a loan the best way to sort this out as soon as possible? It's not possible to answer that without a lot more details... but let's explore the options and see what makes some ways better for some people. Why do you want to do this? There are three main reasons: 1) You are fed … [Read more...]
Off to uni ? Time to plan your finances!
You have the A level grades - well done! There are now just a few weeks to get organised for uni in September 2020. What should your top priorities be for managing your money? And what should you avoid? Living on a student loan is hard You will probably get more money in your bank account than you have ever had before. But most students find it harder to manage than they … [Read more...]
Credit card minimum payments – developments from 2000 to 2019
This is a guest post from The Money Charity, the UK's financial capability charity. If you would like to receive its monthly statistical report The Money Statistics, sign up here. This paper was written as background research for The Money Charity’s responses to the Financial Conduct Authority consultations on the short term credit market. As a reference document it may be of interest to … [Read more...]
Credit card says you’re in persistent debt & must pay more … but what if you can’t?
Have you had a letter from a credit card, store card or catalogue saying you are in persistent debt? That suggests you increase what you pay each month? Hundreds of thousands of these letters are going to people who have only been paying the minimum amounts for a long time. Here is one: If you're still paying more in interest, charges and fees than you're repaying your credit card debt in … [Read more...]