Card Benefits

Competition for your card business is keen. The providers know that once they’ve got you, it’s unlikely you will decide to change. So, if you have identified the APR that is acceptable, the incentives to come-and-join-us are well worth looking at.

• Something special - One of the most attractive incentives is cash-back. The credit card company offers a small amount as a discount on every pound you spend on your card. At least it’s something so well worth considering. Others allocate air miles, or let you choose from a catalogue of goods and holidays. Nothing wrong with this, but remember it is the APR that counts.
• Colourful cards - Not much of an incentive nowadays. There was a time when gold cards signified something special, and those who carried one often paid an annual fee for the privilege. No longer. Now, for no fee at all, you can get them gold, black, multi-coloured, with famous paintings as a background, fish, birds, anything you care to name.
• Insurance - One of the tangible benefits that some cards offer is free insurance on goods you have bought. This means that if you find fault with a product bought with your plastic friend the card company will refund the purchase price or arrange for replacement items.
• Cash machines - Very useful if you need cash in a hurry. But be careful, credit card companies (as opposed to debit cards) will usually charge a fixed fee or a percentage of the amount you take out.
• Foreign funds - It is worth letting your provider know beforehand if you intend to use your card in a bank or a cash machine overseas. Again, you will often have to pay for the privilege, either through a poor exchange rate or a transaction fee.