The Top 10 Credit Card Bonuses

Published by in Home - Credit Cards on December 1st, 2011

These days, there are dozens of credit cards offering a wide range of perks and benefits.  It’s rarely been easier to benefit from a dazzling away of rewards and our guide looks at the top 10 credit card bonuses.

1. Air Miles

Certain credit cards offer Air Miles based on the amount that you spend on your credit card.  Air Miles can be exchanged for flights, holidays and a range of other travel benefits.  The Lloyds TSB Airmiles Duo is one of the most popular Air Miles cards.

2. Discounts

Lots of credit cards offer discounts and other credit card perks at companies affiliated to a certain card.  For example, the Virgin Money card offers discounts on Virgin holidays, media and other products while the AA Card is linked to a dedicated rewards scheme.

3. Cashback

Some credit cards allow you to earn hundreds of pounds a year simply by using them for your regular weekly shopping.  Cashback credit cards pay a percentage of the amount that you spend on your credit card in the form of cash back.

There are several good quality cashback cards in the UK including cards from Santander, Barclaycard and Capital One.

4. Retailer points/cash

Lots of credit cards are now affiliated to specific retailers, allowing you to generate points, discounts and other credit card perks simply for using the car.

For example, the Tesco credit card offers one Clubcard point for every £4 that you spend while Play.com offer one point for every pound spent on their card.

5. Fraud/Identity Protection

Some credit cards offer free fraud protection.  This means that you benefit from additional identity protection.

For example, most Capital One credit cards come with this cover.   Their protection involves two free credit checks each year and an ID fraud helpline to call if needed.

6. Extended warranties

When you buy an electrical item you’ll generally benefit from a year’s warranty.  This means that you’ll be able to get the item repaired or replaced if it breaks down within a year.

Some credit cards offer an extended warranty on electrical goods you buy using the card.  For example, the Ulster Gold MasterCard offers a year’s extended warranty on appliances costing between £75 and £2,000.

7. Free flights

Some credit cards are affiliated with airlines and so you can earn free flights by using your card.  British Airways and BMI offer two of the most popular airline cards in the UK.

8. Purchase protection

Many credit cards offer ‘purchase protection’, meaning that if goods you buy using the card are lost or stolen (usually within around 90 days) you can claim the money back from your credit card company.  For example, the Capital One Classic Visa offers purchase protection for up to 100 days with maximum cover of £1,000 per item (there is a £25 excess).

9. Travel and hotels

Some cards offer travel benefits.  For example, the Hilton Hhonors card, offer Hhonors points for every pound that you spend.  You can then redeem these points for a variety of travel-themed rewards, such as car rental, theme park tickets and hotel stays.

10. Airport Lounge Passes

Some credit cards such as the American Express Platinum card offer priority passes to special airport lounges where you can enjoy food, drinks and wi-fi internet access.

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5 Ways To Avoid Becoming a Victim Of Credit Card Fraud

Published by in Home - Credit Cards on October 16th, 2011

Have you been a victim of credit card fraud?

The UK Cards Association reported that fraud on UK credit and debit cards in 2010 was £365.4 million.  While card fraud might have fallen to its lowest level since 2000, it’s still vital that you protect yourself and take serious security measures to protect your money and your identity.

Our guide looks at five ways to avoid being the victim of credit card fraud.

Beware of ‘phishing’ and telephone scams

‘Card not present’ losses – criminals using stolen credit card details on the internet or by telephone – totalled £226.9 million in 2010.  This is the single biggest way that credit card fraud takes place and so it’s important that you remain vigilant for these scams.

Do not give your credit card details out over the telephone unless you instigated the call and you know exactly who it is that you are speaking to.  Similarly, don’t ever respond to e-mails that ask you to click a link to a website in order to provide your credit card information.  These are called ‘phishing’ scams.

Don’t ever give your personal details or passwords to someone who wants to ‘check your information’.  If you’re in doubt, call your card provider yourself to verify that the request is genuine.

Be careful online

With more and more people shopping online, it’s important that you only hand your credit card details to secure websites.  Check a website has encryption security before you buy.

Be careful at ATMs and with your PIN

When using your card at an ATM, check that the ATM hasn’t been tampered with or altered in some way.  Some fraudsters attach card readers to ATMs in order to steal card details.

And, always make sure that you don’t carry your PIN number alongside your credit cards.  Don’t keep your PIN in your wallet or on a piece of paper with the card.  If you think you won’t remember the number, use an ATM to change your PIN to a more memorable number.

Keep your credit card in your sight

Try to make sure that you don’t let your credit card out of your sight.  For example, in a restaurant you should expect the card machine to be brought to you.  If you let your card out of your sight then the information could be stolen and used for credit card fraud.

And, always make sure that it is your card that has been returned to you in a shop.  Don’t just assume that you have been handed back your card and slip it back into your wallet.

Check your statements regularly

When you receive your credit card statements, always make sure that you check the transactions and contact your card provider if there are any that you don’t recognise.

 

 

 

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Credit ratings and how it effects your credit card choices

Published by in Home - Credit Cards on October 16th, 2011

 

How good is your credit rating?

Having a good credit rating is important if you want to borrow money.  If banks can see that you have managed your finances well in the past, they are more likely to lend and at better interest rates.

However, not everyone in the UK has a great credit rating.  Credit Action report that someone is declared insolvent or bankrupt every 4.31 minutes in the UK and that the Citizens’ Advice Bureau deal with over 9,000 new debt cases every working day.

Our guide looks at what ‘bad credit’ is and how improving your credit rating could help you get a better choice of credit card deals.

What is bad credit?

Bad credit covers a range of issues.  For example, you can damage your credit rating by:

  • Failing to make payments to loans or credit cards on time
  • Being in arrears with your mortgage
  • Having a ‘default’ or County Court Judgment
  • Missing payments to loans or credit cards
  • Exceeding your bank overdraft limit
  • Being bankrupt or entering into an Individual Voluntary Arrangement (IVA)

There are different degrees of bad credit and some issues are worse than others.  However, if your credit rating is affected by one or more of these issues, banks are likely to see you as a higher risk when you apply for credit.  They may charge higher interest rates or, in some cases, you may be declined for credit.

How your credit rating affects your credit card choices

Generally speaking, the best credit card deals and the lowest interest rates are offered to people with the best credit rating.

What this means is that if you do have a less than perfect credit history, you may not be able to benefit from some of the best purchase and balance transfer credit card deals in the market.  It doesn’t necessarily mean that you will fail to obtain credit but you may find that you pay higher interest rates.

How you can improve your credit rating

There are several simple ways that you can help improve your credit rating and to make it more likely that you will be accepted for the best credit card deals.

One of the most common reasons why Brits are declined for credit cards is not because they have bad credit but because they have ‘thin credit’.  This is where there simply isn’t enough information about you on your credit file for a card company to make a decision.  So, actually taking out more credit can help improve your credit rating.  If you can show that you can responsibly manage a credit card or loan then it will demonstrate that you are likely to be a good risk to a lender.

In addition, you should regularly review your credit file to ensure they hold the correct information.  There are three credit reference agencies in the UK – Equifax, Experian and Call Credit – and you should review the information they hold at least annually in order that it is up to date and accurate.

 

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Elite credit card offers – American Express Platinum Card

Published by in Home - Credit Cards on September 17th, 2011

If you’re lucky enough to have an excellent credit rating, and a fair amount coming into your account every month, then you have a wide choice of potential credit cards to choose from, allowing you to benefit from a whole host of added bonuses. But what are the creme-de-la-creme of Uk credit card offers? In part of a series we first take a look at the offering from American Express.

American Express – The Platinum Card

With the Platinum card, American Express offer a whole range of VIP benefits are available, as well as additional bonuses based upon membership reward points. Points are earned depending on the amount of money spent on the card.

Benefits:

Airport Lounge access
Upto four supplementary credit cards, and you gain points on their purchases
Comprehensive travel insurance
Use reward points to spend at partners like Links of London, Sony and Molton Brown.

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