Uk Cheap Credit Cards

Written by Ingrid Chen
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Establishing good credit is one of the most important steps one can take to ensure a solid financial future. Whether you're looking to take out a loan or to rent a property, having a solid credit history is vital to everyday financial decisions. A simple way to build credit is by applying for a credit card that works for your needs.

The United Kingdom offers many types of credit cards to choose from. In fact, the UK accounts for more than half of all credit cards in Western Europe combined. Finding a card won't be hard; however, there are several things to keep in mind when choosing one, especially if the card is your first.

The Differences Between Various Credit Cards

The most obvious sign of what makes credit cards different is the rate of interest that applies to the credit balance. Interest rates vary with the economy, based on market demand. Unlike mortgage rates, however, credit card interest rates are not set by a governmental reserve board. They vary independently from company to company. Many cards offer unique benefits, such as a zero percent interest rate for an introductory period, usually six months.

These benefits are meant to lure in new credit card customers. It may seem tempting to apply for many cards at once so as to take advantage of more credit with no interest. However, doing so can put an individual at higher debt and bad credit risks. Financial professionals generally suggest applying for a single card with a low interest rate, and also being careful not to "max out" a card's credit limit. Research carefully before applying for any cards and see what best fits your buying habits.


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