Some may think I am being quite sexist and stereotypical when I say this, but I love shopping. I can’t get enough of it, for me buying something new gives me a natural high. Who needs drugs a?
So I need a credit card to satisfy my shopping addiction, but others need (and I use the term ‘need’ loosely) a credit card for other reasons. May it be to pay the bills, or put food on the table, I’m not saying these are the best reasons to get a card, but who am I to judge. All I can say is finding a card suited to each person’s need is quite crucial.
So I figured the best way around this is to closely examine what you need the card for. What is the main reason for you wanting one?
My fella has a credit card. He’s not bothered about the interest rates, or the fees and charges associated with the card, but rather the fact that the credit card is football branded with his favourite team, whereas I went for the fixed low rate for life credit card by the same company.
For me, and sensible others it should be about practicality and not vanity when it comes to finances. If I know I am purchasing something I will have enough money to pay off in full with my pay packet at the end of the month, then I will put the cost onto a rewards credit card, with a slightly higher interest rate.
The trick here is to link this card with a standing order to your current account. When you get paid, so will your credit card debt, you will never have to pay any interest charges and late fees, all the while collecting points (in my case to exchange for high street vouchers). So it doesn’t matter that the interest rate on the card is slightly higher than my rate for life card, as I will never have to pay it.
If on the other hand I am buying something big, that I know I can’t afford in one go, I will use my lower interest card, and pay off in stages with quite low interest attached.
I know this post may to most not sound like new information, but I thought it was worth a mention as when my colleague pulled out an American express platinum card with pride to pay for her new TV, it struck me that there are definitely people out there that are not responsible with their money, and we take what we know for granted.
Are there any credit cards you would recommend? And why? Drop me a comment; I’d love to hear from you!