There are so many avenues for attaining credit cards these days from your local supermarket to your local bank.
However the two biggest brands are Visa and MasterCard. Interest rates vary from card to card and according to how credit is obtained. A card issuer may charge different rates for cash advances, purchases and balance transfers. Rates can range from less than 10% to as much as 29% APR.
ATM withdrawal or using a credit card cheque - tend to have high interest rates and there is often a fee of at least 1.5% of the amount you take out. This percentage is also applied if you use the card overseas.
Most cards offer an interest-free period on purchases – usually around 56 days. Certain providers run introductory offers, which include interest-free periods of around 12 months for purchases or balance transfers.
As well as charging different rates, providers calculate interest from different times so it can be difficult to compare costs fairly.
Applying for a card can be made in a bank branch, on the phone, online or by post. To qualify for a card you will need to give information about where you live, how much you earn and what other credit cards you might have.
The easiest option is to get a card from your bank, but it may not offer the best deal for your circumstances. Instead you should consider how you will use the card and look for one that suits your needs.
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