Get Your Credit Cards Sorted Before Christmas
With Christmas rapidly approaching, now is the perfect time to check out whether you have the best credit cards to see you through the festive period.
If you are carrying forward a balance that is likely to increase in line with your Christmas shopping, then you should be checking out better interest rate deals, but if you pay off your balance every month then you should be looking for the best rewards deals.
Or, if you are somewhere in between then you should consider splitting your balance and new purchases across two cards.
However, you need to act fast if you are to get everything in place before Christmas.
The time left to get your signed application sent, approved and for you to receive your card in time for a festive spree is rapidly diminishing.
That tight timescale could be even further reduced if postal workers decide to take further industrial action.
And, before submitting your application you need to do your research.
The head of personal finance at Moneyfacts, Samantha Owens is insistent that people who shop around will unearth the best deals, and end up making their money work for them over Christmas.
"There are many cards on the market that offer cash back; it's just making sure that the one you choose is best for you.
" But, be realistic warns Owens, "there is no point getting a credit card that offers cash back if you don't pay off the balance each month, as the amount of interest you will pay will far exceed the benefit of the cash back.
" Another thing to consider when switching credit cards is that you read the offers thoroughly.
Some issuers attach differing interest rates to differing types of borrowing such as cash advances, balance transfers or purchases.
Card issuers also order the ways that borrowings are repaid, and this could significantly affect the amount of interest you are charged.
Sean Gardiner of Moneyexpert.
com warns: "If you are unaware of the order of payments on any credit card, it's definitely worth checking.
Otherwise you could find that you pay off the cheapest debt first.
It is especially relevant if you are intending on paying the minimum each month.
" With Uswitch estimating that 3.
5 million card-holders do exactly that it is important for them to check that the highest rate is repaid first or risk being in debt for many years.
So, if you are considering credit card a switch prior to Christmas work out whether you will be able to afford to pay off your Christmas spending in one go, or whether you'll be carrying some of the balance forward before deciding which card is best for you.
If you are carrying forward a balance that is likely to increase in line with your Christmas shopping, then you should be checking out better interest rate deals, but if you pay off your balance every month then you should be looking for the best rewards deals.
Or, if you are somewhere in between then you should consider splitting your balance and new purchases across two cards.
However, you need to act fast if you are to get everything in place before Christmas.
The time left to get your signed application sent, approved and for you to receive your card in time for a festive spree is rapidly diminishing.
That tight timescale could be even further reduced if postal workers decide to take further industrial action.
And, before submitting your application you need to do your research.
The head of personal finance at Moneyfacts, Samantha Owens is insistent that people who shop around will unearth the best deals, and end up making their money work for them over Christmas.
"There are many cards on the market that offer cash back; it's just making sure that the one you choose is best for you.
" But, be realistic warns Owens, "there is no point getting a credit card that offers cash back if you don't pay off the balance each month, as the amount of interest you will pay will far exceed the benefit of the cash back.
" Another thing to consider when switching credit cards is that you read the offers thoroughly.
Some issuers attach differing interest rates to differing types of borrowing such as cash advances, balance transfers or purchases.
Card issuers also order the ways that borrowings are repaid, and this could significantly affect the amount of interest you are charged.
Sean Gardiner of Moneyexpert.
com warns: "If you are unaware of the order of payments on any credit card, it's definitely worth checking.
Otherwise you could find that you pay off the cheapest debt first.
It is especially relevant if you are intending on paying the minimum each month.
" With Uswitch estimating that 3.
5 million card-holders do exactly that it is important for them to check that the highest rate is repaid first or risk being in debt for many years.
So, if you are considering credit card a switch prior to Christmas work out whether you will be able to afford to pay off your Christmas spending in one go, or whether you'll be carrying some of the balance forward before deciding which card is best for you.
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