Pay Your Balance Off And Look For A Good Deal
The rise in credit card interest rates need not be of major concern to most people. Despite the UK's growing debt mountain, two thirds of credit card holders pay off the full outstanding balance every month. For these people, choosing a credit card is more than about getting a low interest rate - it's about choosing a card that gives them something extra.
Added services on a gold or platinum credit card can be decisive. These cards are no longer the province of those with big pay cheques, as some of these cards can now be taken out by anyone with a salary starting at £10,000.
These heavy metal cards also used to come with steep annual fees for the added benefits of free travel insurance and free purchase protection. Now, however, most gold and platinum cards come without an annual fee and are much more accessible.
Capital One has a range of three Platinum Mastercards requiring a minimum income of only £10,000. The Platinum Visa card from Saga needs a minimum income of £12,000. For the Co-operative Gold and Platinum cards require minimum incomes of £15,000 and £25,000 respectively.
Head of personal finance at uSwitch.com, Mike Naylor, said: "The gold and platinum card market has changed a great deal over the past few years. Now it is much more common for them not to come with an annual fee, and they are much more widely available. Having a gold card used to be quite impressive, but now they are so common, it has become less of a status symbol.
"If you do go for one of these cards because of the extra benefits it comes with, make sure you are eligible for the insurance - often you only get the cover if you have paid for your holiday using the card."
There are still some status symbol cards out there, however.
The Coutts World Card has an annual fee of £350, but this is not payable if you spend more than £50,000 on the card. The card offers a concierge service that can assist with holiday and restaurant booking, among others.
The NatWest black card has a £250 annual fee, and is only available to those above 25 with an income of £75,000 or more. The card offers multi-lingual assistance 24 hours a day, every day of the year. NatWest say that no request is too big or too small, from booking theatre tickets to chartering a yacht, and it gives you access to more than 450 executive airport lounges, family travel insurance and winter sports cover.
At the other end of the card scale, there is Matercard's new premium credit card, designed to meet the needs of financially knowledgeable "mass affluent" consumers. Customers can earn 4% cashback on all purchases in the first three months, and 1% thereafter. There is no annual fee and it offers free annual travel insurance if you pay for at least three quarters of the holiday with the card.
If you pay your credit card balance off in full every month, if could be worth your while looking around for the best deal that a card can offer.
Published on January 11, 2008
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