Credit Card Section

The Govt Is Bought & Paid For By The Big Credit Card Companies

January 2006

We all know the format. Every few years a government Select Committee or organisation gets together to rightly attack the Credit Card companies for charging excessive interest rates, excessive fees and general gouging its clients. A few politicians wanting some media coverage start to go crazy complaining that things are clearly not fair. But then things die down and some months later the Committee publishes its recommendations which are always in favour of the Credit Card companies.

Proof if any was needed that big business now generally does what it wants (especially when it comes to money) and politicians are more ineffective than they've ever been.

Here's An Example

The Competition Commission has just been lambasted by consumer groups who suggest that measures it announced to crack down on store card companies fell so far short of addressing the mis-selling and high interest rate charges.

So after a two year investigation the result was business as usual for the CC companies. Just another 'investigation' that gets absolutely nowhere.

So What Can The Consumer Do Instead?

Don't sign up for Store Cards unless there's a very good deal attached such as 5% off all purchases using the card etc

But then only ever apply if you can FULLY pay off the debt at the end of EVERY month (APR is around 29.9% on most store cards!)

If you do want to use credit then forget about store cards forever and instead get a credit card that's far cheaper to borrow with

So Which Credit Cards Are Good

This all depends on what you want the card for.

Some people pay off their balances every month and therefore should look towards Reward or Cashback style cards. Others borrow so should try and get the lowest APR possible, and others look to transfer balances from other cards so as to take advantage of so called zero % transfer offers.

Best CashBack Credit Card
The American Express Platinum & the American Express Blue are the best for cashback win hands down at the moment for cashback offers
CashBack can earn you easy money - read this LearnMoney article for more info - Click Here

Amex Blue
Amex Platinum

Also Look at this card for Cashback

Morgan Stanley Platinum
Pays 1% on the first £2,000 (pa) and then 0.5% thereafter
A special promo is often run on this card offering a '6 Months Double Cashback'
Click for more details on this card

Best 0% Balance Transfer
It used to be the Virgin Credit Card but it now imposes a 2% charge to transfer debt
Even with paying a fee it can still be a good deal but you must get your calculator out and work out what interest you'd save etc
The best 0% deal right now is Sainsbury's Card which offers 10 months with NO fee - More details in this article

Sainsbury's 0% APR Credit Card
Virgin Credit Card - More info

Summary

Forget Store Credit Cards unless they offer some sort of great deal AND you can pay back the credit EVERY month without FAIL
Instead, do a touch of simple homework (see above) and get the best credit card for your needs
And never rely on the government to protect you against the predatory tactics of the Credit Card companies

Credit Card Section

The Govt Is Bought & Paid For By The Big Credit Card Companies

Here's An Example

So Which Credit Cards Are Good

Summary

See Also