10:17am Thursday 11th March 2010
I LOVE credit cards! Done right, they’re the best way to spend. As long as you always repay the card in full at the end of the month, preferably by direct debit so there’s never any interest charged, your credit card has lots of hidden benefits: CHEAPEST WAY TO SPEND ABROAD Often you can be up to 6 per cent better off using the right card – the top card is Santander Zero which doesn’t add a hidden commission to the exchange rate and has no ATM withdrawal fee.
Nationwide, Saga and the Post Office cards are pretty decent too.
But almost ALL others are hideous and charge too much.
FREE FLIGHTS OR VOUCHERS
Many cards dole out freebies if you spend a set amount. Sign up then do your normal spending on the card until you hit the trigger, repaying in full, of course. Spend £250 on a BMI Amex card within 90 days and receive enough BMI miles for a return business-class flight to Russia, Turkey, or Majorca. Others offer high street vouchers and free BA flights. For a complete list see moneysaving expert.com/ccfreebies
FREE EXTENDED WARRANTIES
Most electrical goods include a free year-long warranty, so if the product breaks down, you can get it repaired at no cost. A few credit cards, such as Nationwide, give you an automatic extra year’s extended warranty on electrical goods provided you use them to pay.
PROTECTION IF THE COMPANY YOU BUY FROM GOES BUST
Buy something costing more than £100 on a credit card and your credit card company is jointly liable with the retailer. If the company goes kaput, or the product fails, you have the same consumer compensation rights with the card company as you do with the retailer.
FREE ID FRAUD PROTECTION
All Capital One credit cards come with free ID fraud protection – not just for their own cards but everything you have – and you don’t actually need to use the card for it to work.
BOOST YOUR CREDIT SCORE
Apply for special ‘easy to get’ cards with hideous 30 per centplus interest rates, spend a little each month and make sure they are repaid in full so it’s interestfree.
After a year your credit history should be boosted.
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TV money guru Martin Lewis runs the consumer revenge website MoneySavingExpert.com Ensure you get his weekly e-mail so you’re constantly saving money. |
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