10 things you didn't know about credit cards
There are 11 million more credit cards in the UK than there are people* and when used in the right way our flexible friends can be brilliant financial
But fall into the traps set by providers at your peril, because if you don't know how to use your card properly the costs can quickly mount up. So we've
put together 10 surprising and enlightening facts about your plastic. From the weird and wacky to exposing downright rip-offs, these quirky tips could
save you serious money!
1. The Royal's favourite food hall Fortnum & Mason has one of the cheapest store cards around at 15.9%, less than most credit card APRs! But the
purveyor of posh goods is the exception that proves the rule and most store cards are total rip-offs, with APRs of up to 30%. You are better off buying
with a 0% purchase credit card.
2. Don't pay over the odds for extended warranties as some credit card purchases include them for free. For example, Nationwide credit card
customers benefit from a free 12-month extended warranty on electrical or gas purchases over Â£50 that already have a manufacturer's warranty of
up to two years, if you register the purchase within 60 days.
3. When you apply for a credit card, it leaves a footprint on your credit record, which can make it harder for you to be accepted for credit in the future.
Avoid this headache by using the Confused.com credit profiling tool, which searches the market for you, tells you which cards best suit your
circumstances and those you are most likely to be accepted for.
4. You can use your plastic to pay off your overdraft and avoid interest charges from your bank. A handful of providers allow this, including MBNA.
With its Platinum Credit Card you can benefit from 0% interest on money transfers to your current account for 13 months if you transfer the money
within the first 90 days.
5. An enormous Â£63.5bn of credit card debt is owed by UK consumers (according to the British Bankers' Association). But that is dwarfed by the total
cost of t