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A guide to updating your credit rating

Dale Lovell — Thu, 06 Mar 2014 15:24:58 GMT

A good credit rating can help you secure a number of financial services such as acredit card, loan or car insurance. However, different companies use different credit scoring systems. This means that a rejection from one company may not mean you face rejection from all of them. There are lots of things that you can do to make sure you’ve got a good credit rating and with the recent introduction of credit-check site Noddle, you can now check your rating online for free as well. This guide will tell you everything you need to know about credit ratings, so you can secure the financial services you need.

What is a Credit Rating?

Whenever you apply for financial services such as mortgages, overdrafts or mobile phone contracts, the lender or company will check your credit rating to determine how likely it is that you will be able to make the required payments. Different companies use different scoring systems which are not made public so you can’t find out what system a particular lender uses. However, different scoring systems means it’s worth trying other companies if the first one you approach turns you down.

The credit rating you have will not only affect which products you’re eligible for but also the quality of those products. The majority of loan rates are dependent on credit rating which means you could get offered a product but be charged a higher rate of interest.

Getting the Best Possible Credit Rating

When banks check your credit rating they use three credit agencies – Callcredit, Equifax and Experian, as well as a variety of other information including:

Application Form- Lenders glean details like your salary, address and your reasons for wanting a loan from your application form so it’s essential to fill it out accurately and as fully as possible.

Past Dealings– If you’ve borrowed from a company before or used their services your past behaviour will be assessed. If you’ve reneged on payments for a loan with a company before it’s unlikely that they’ll lend to you again.

Credit Reference Agencies– Callcredit, Equifax and Experian compile certain information and send it to prospective lenders. All lenders will use at least one credit agency and some may use all three. Credit companies find the information they use from the following sources:

Fraud Data– if you’ve had your identity stolen or if you’ve committed fraud yourself the information will be held by credit companies.

Search, address and linked data– this can include people you’re associated with financially, other lenders who have carried out searches on you when you’ve applied for a loan and any addresses you’ve lived at or are linked to.

Court records– credit companies will alert lenders of you’ve been declared bankrupt or have received a CCJ (county court judgement).

Electoral roll– this is used to find addresses and to determine who you live with.

Rental Payments

As of spring 2013 rental payments will be registered on your Experian file which means that if you’re late with paying rent or miss payments your credit rating could be negatively affected. Adversely, if you always pay rent punctually it could help improve your credit rating.

However, if you’ve got a shared tenancy agreement and your flatmates fail to pay rent on time your own credit rating won’t be affected but this will only apply if your landlord includes a clause within their contracts, so make sure yours has this before you sign anything. Landlords will be able to pay to see your rental history so they can determine whether to rent to you, but they won’t be able to see other credit information about you such as any loans you have. Banks and financial services companies will be able to see your entire history including your rental payments.

Checking your File

You can get a complete credit check report from Experian or similar but you will have to pay. However, you can now get a completely free credit report from Noddle where you can check your credit rating online and correct any mistakes quickly and easily. When you see your file carefully go through your credit history to make sure there are no mistakes and look for errors in other details such as your address or who you live with. If you do spot a mistake you can write to the credit company directly and if they agree they will amend it.

Improving your Credit Score

If you want a better credit score then make sure you do the following:

1. Get on the electoral roll

2. Time your applications right and don’t apply for lots of different things at once.

3. Get a credit card if you’ve got no credit history at all.

4. Always keep up with rent, loans and any other financial obligations.

5. Make sure you’re not financially linked to someone else with a poor credit score.

Finally, whatever you do, never lie on a loan application form. Not only is it illegal but if your information can’t be corroborated by different lenders you’re likely to be rejected anyway.

Read more about credit ratings and applying for a credit card:

Applying for a credit card online – what do I need to know?

Credit rating guid

How to manage a credit card account with multiple card holders

Dale Lovell — Tue, 04 Mar 2014 08:50:37 GMT

In some countries consumers can apply for a joint credit card in the same way as they would for a joint loan or bank account. In the UK, credit card accounts are held by individuals. However, many credit card providers do allow additional card holders to use the same account.

What are the benefits?

The main benefit of adding additional card holders to your credit card account is that it allows them access to the credit using their own cards. This can be extremely convenient for spouses, partners and others with joint finances. If a credit card offers extra benefits such as Air Miles, cashback or a points-based rewards scheme, purchases made by additional card holders will usually count towards the earning of rewards.

People with a poor credit rating can usually still be added to a credit card account as an additional card holder. If you have a good credit record yourself and you add a partner whose record is not so good, your credit details won’t be linked to theirs on the basis of a second card. This is because additional card holders do not sign a credit agreement.

Who can be an additional card holder?

Most credit card providers will stipulate that additional card holders must be a spouse, partner or close relative to the main account holder. They will usually have to be 18 years or older, a UK resident and living at the same address as the main account holder. Some providers may allow additional card holders to live at a different address (a student living away for example) but they may have to maintain the main card holder's address as their own primary residence. Credit providers will usually have a limit on the number of additional cards they allow. This is sometimes just one additional card or they may allow three or four.

Whose responsibility is it?

The main credit card account holder is the person who signs the credit agreement and they are responsible for all payments and balances held on the card. If the card is taken over its limit or any payments are missed, the main account holder is responsible for any fees or charges.

It is important to only add additional card holders who you completely trust but even then problems can arise. If a couple split up the main account holder who signed the credit agreement is liable for any debts on the card, even if transactions were made on their partner's card. The same goes for hefty bills ran up by teenage children or any other additional card holder. Every card holder shares in the joint responsibility to use the card wisely and safely but only the main account holder is liable for the debt.

Making repayments

As with all credit cards, a card with multiple holders should always be used responsibly. Most credit cards have an interest free period for purchases, meaning that as long as the balance is paid in full each month there will usually be no interest to pay. Setting up a direct debit to pay off the balance by the due date each month can help ensure you never forget to make payment.

If you cannot or do not wish to pay off the full balance you should at least make sure you pay the minimum amount due. Failure to do so will usually result in penalties and could also affect your credit rating.

Multiple holders – one credit limit

No matter how many card holders there are on a given credit card account, the same credit limit applies to the account as a whole. This means that if three users have access to a card with a credit limit of £3,000, the £3,000 is available to use between them. They are not limited to £1,000 each and nor do they get £3,000 of credit each. If one card holder spends £2,500 then there is only £500 of credit left for the other card holders.

For this reason it is important for all card holders to communicate and to make each other aware of any transactions that have been made on the card. This can be especially important if the card has a low credit limit or is frequently taken up to or close to that limit. Card holders may be able to check the available balance before making a transaction, but some transactions can take a while to be presented and processed. This can mean that your current balance can be misleading if you are unaware of transactions that have not yet shown up on the account.

If you're not on top of your joint spending it can be quite easy to go over your credit limit accidentally. This can result in some quite hefty fines and fees or your card being declined. Going over your credit limit can also negate special promotional offers (such as low interest rates) and can adversely affect your credit rating.

Find out more about using your credit card:

Credit Card Hints and Tips

Credit Card Jargon Buster

Simple ways to boost your personal finances in 2014

Matthew Jones — Thu, 27 Feb 2014 15:57:56 GMT

In tough financial times it's more important than ever to take control of your personal finances. There might not be much we can do as individuals about the overall financial conditions and climate but there are simple steps most people can take to boost their personal finances in 2014.

Make a household budget

It's quite simple arithmetic. If you have more money going out of the household than you have coming in, you're storing up trouble for yourself. A household budget will help you keep track of your income and expenses and to balance the books at the end of the month.

When making a budget you should be honest about your expenditures. Regular monthly payments are easy to add up but variables such as food shopping, entertainment, lunches etc. should all be accurately reflected. It may help to keep a strict record of all your spending for a few months to see if the reality matches up to your original estimates. You may be surprised to see how much of your income goes where and identify areas where you can easily make savings. You will also need to allow for annual expenses such as holidays, car insurance (if paid annually rather than monthly) and road tax.

Next, add up all your income, whether from a job, benefits or any other sources. See how the two figures match up and allow some extra 'emergency' space for unexpected expenditures such as vet bills, car repairs or even a faulty boiler. If your expenditure is close to your income (or even exceeds it) you will need to look for areas where you can make savings.

Tackle your debt

If you have high levels of personal debt, it's important to take a grip of the situation as it can quickly spiral out of control. Paying off existing debts without taking new ones on can often provide the greatest turnaround in your personal finances.

If you have outstanding debt that you cannot quickly pay off, it may sometimes be possible to negotiate better rates or consolidate existing debts into a loan with a better overall rate of interest. If you owe money on one or morecredit cards, it may be worth transferring existing balances to a card with a preferential balance transfer rate. This can be as low as 0% but there is usually a fee involved and promotional rates will usually last for a set period. After this time any balance remaining on the card will revert to the card's standard rate, which may be significantly higher than average.

The best way to use a credit card is to pay off your balance in full each month. Credit cards have interest-free periods and if you take advantage of these, you will not usually have any interest or fees to pay. If you regularly do this it might be worth considering a card that offers cash back or a points-based reward scheme. If you regularly have a balance left over every month, a card with a low standard interest rate might be better.

You may also be able to pay off personal loans early if you can afford to do so. There may be a penalty for doing so but this may still be less than the interest you would pay in the remaining regular repayments.

Increase your income

This can be easier said than done but taking on extra hours if they are available or even taking on a second part-time job can provide a major boost to your personal finances. Some people in paid employment may have skills that they can use on a freelance basis and it may be worth asking for a raise. Even if you can't find any extra employment it might be worth having a clear out and selling items – whether clothes in good condition, CDs or anything else. Online auction sites can be good for this or there are more traditional avenues like car boot sales and personal ads.

Shop around

It's a competitive market out there and most people have potential savings they can make from the biggest purchases they make (switching your mortgage provider or asking for a better deal) to the smallest (keeping your eye on grocery prices).

Start saving

If you manage to arrange your finances so that your income outweighs your outgoings, it's often a good idea to start saving. The best way to save will to a large extent depend on your own personal circumstances. Low interest savings accounts will generally allow you to access your savings quickly while an Individual Savings Account (ISA) may offer a better, tax-free return on your savings.

Find out more about boosting your personal finances:

Mummy Money Management: Creating a family budget

A guide to using your credit card responsibly

Mummy Money Management Series: A guide to the financial support available for single parents

Ian Houghton — Wed, 22 Jan 2014 19:00:10 GMT

Raising a child can be a challenging experience for anybody. Lone parents can sometimes find it even more daunting and it's important to access all the support and help available. This can range from friends and family to government agencies and charitable organisations such as Gingerbread. Getting as much advice and practical assistance as you can will not only make your life easier, it will also help ensure the best possible start in life for your kids.

Maternity pay

If you are working you may qualify for maternity leave and statutory maternity pay. Maternity leave can last a full year and maternity pay can be paid up to 39 weeks. In order to qualify for statutory maternity pay, you must have worked for the same employer for 26 weeks by the 15th week before your due date*. You must also be earning at least the lower earnings limit for national insurance. For the 2013-2014 tax year, this is £109 per week**.

For the first six weeks you will be paid 90% of your average gross weekly earnings. Gross earnings mean your pay before tax and National Insurance contributions are taken out. For the rest of the period, statutory maternity pay is 90 per cent of your gross weekly earnings or £136.78 a week, whichever is lower. This is the legal minimum you must be paid if you qualify, but some employers will offer more.

Child maintenance

Both parents are legally obliged to support their children financially, even if they are no longer together. This means that a parent who doesn’t have day-to-day care of the child should pay child maintenance to the parent who does. This should be paid at least until the child reaches 16, or 20 if they are in full-time education up to and including A-levels***.

It is usually best if separated parents can come to a reasonable arrangement between themselves. Seeking a ruling in court is generally seen as a last resort and, following a change in the law in 2011, estranged parents are expected to go through a process of mediation before using the courts^. From 25 November 2013 the Child Maintenance Service can also help make child maintenance arrangements and to collect the payments if necessary^^. This replaces the Child Support Agency (CSA), although the CSA will continue to manage its existing cases.

If the parent who doesn't provide day-to-day care lives abroad, you may still be able to get maintenance payments from them. Other EU countries must also enforce decisions by the courts, the CSA or Child Maintenance Service regarding maintenance payments^^^. The UK also has reciprocal agreements with a number of other countries, meaning they may be still be able to enforce decisions made in the UK.

Childcare costs

All three and four-year olds in England are entitled to up to 15 hours of free early learning and play per week, for 38 weeks of the year, in places such as nursery schools and children's centres~. Some two-year olds may also qualify if you are in receipt of certain benefits, such as income support.

If you need to pay for further childcare in order to work, you might qualify for help with the costs. If you work 16 hours or more per week and are on a low income, you might qualify for the childcare element of working tax credit. This could pay up to 70 per cent of your childcare costs up to a maximum level of £175 per week for 1 child and £300 per week for 2 or more children. Some employers also offer childcare vouchers. These are usually given in lieu of pay, in what is known as a 'salary sacrifice'. The important thing to remember is that the vouchers are taken out of your pre-income tax and National Insurance income. This means that the money you would normally pay in tax and N.I. will go towards your childcare costs instead~~.

Other benefits

You will usually be entitled to child benefit for children under 16, or under 20 if they are in full time non-advanced education such as at sixth form or a further education college (but not at university or similar). Depending on your income and circumstances, you may also qualify for other benefits, including working and child tax credits, council tax benefits and housing benefits. If you are already receiving benefits and you split up from your partner (whether they are your child's other parent or not), you should inform the relevant departments as soon as possible.

Further help and advice

There are a number of places you can turn to for practical advice and emotional support. The Citizens Advice service can offer advice on benefit, debt, housing and many other issues. Gingerbread is a charity devoted to providing support to and campaigning on the behalf of single parent families. There may also be grants and funding available from local and national sources that take each individual's circumstances into account. The Prince's Trust, for example, has links to many different charitable organisations~~~ while the Access To Learning Fund~~~~ can provide assistance to students in financial hardship. This could include single parents who are looking to return to or continue with their education.

Read more from our Mummy Money Management Series here:

Sources:

*http://www.adviceguide.org.uk/england/work_e/work_rights_at_work_e/parental_rights_at_work.htm

**http://www.hmrc.gov.uk/rates/nic.htm

***https://www.gov.uk/child-maintenance

^http://www.cmoptions.org/en/separating/about-mediation.asp

^^https://www.gov.uk/child-maintenance/how-to-apply

^^^https://www.gov.uk/child-maintenance-if-one-parent-lives-abroad/eu-australia

~https://www.gov.uk/free-early-education

~~http://www.payingforchildcare.org.uk/pages/childcare-element-of-working-tax-credit.html

~~~http://www.moneysavingexpert.com/family/childcare-vouchers

~~~http://www.princes-trust.org.uk/need_help/your_next_steps_in_the_uk/alternative_sources_of_funding/funding_for_individuals.aspx

~~~~https://www.gov.uk/access-to-learning-fund

How save for Christmas early

Ian Houghton — Thu, 16 Jan 2014 13:00:09 GMT

It’s never too early to save for Christmas. In fact, the January sales are often a great time to get everything you need. As everything is reduced to lower, than low prices, it makes sense to stock up on gifts for everyone next year.

Taking advantage of year round sales is just one way to save early for the festive season. It’s estimated that one in 10* shoppers actually start their Christmas shopping in January and 45%* of shoppers have all of their gifts thanks to mid-season sales.

Most surprising, is the fact that 40%* of people have never tried to look for early Christmas bargains.

How much can you save?

Even if you’ve left it until November, you can still save money by completing your shopping before 1st December*.

A recent survey by secretsales.co.uk has shown that out of 2000 adults, those who completed their shopping by the end of November saved £84* on average compared to those who didn’t.

While it’s impossible to say exactly how much you could save, any amount of savings is worthwhile.

Spreading the cost of Christmas

Starting to save for the festive season early helps you to really spread the cost.

You could even start to add money to a savings account. Set a specific amount to save each month and stick to it. That way when Christmas arrives, you’ll have the money available and won’t have to pay out large sums out of one pay packet.

During the festive season pay dates may change, meaning that you may either get your wages earlier, and have to eke out your budget until Christmas, or your pay date may fall just shy of the big day itself. Saving up for Christmas early will leave you with more money left over to last you the festive season, and all the food, drink and festivities that come with it.

Supermarkets can also help you to spread the cost and The Asda Christmas Savings Card is a great example. This card allows you to save a maximum of £144 and in return you’re given a £6 bonus**.

Absolutely every part of Christmas spending can be planned and saved ahead for, even the unexpected guests who turn up at your door come December 25^th!

Getting exactly what you need

One of the main benefits of planning ahead when it comes to Christmas is the fact that you can stick to a list.

When you leave everything until the last minute it can cause you to panic buy. Nothing is worse than heading into a shop pre-Christmas and scrambling for turkey, Christmas puddings, Christmas crackers and more along with other 11th hour shoppers.

This late dash to the shops can lead to you spending a lot more money than you might have done if you’d have started shopping earlier.

Create a list and write down everything you need. Then throughout the year you can tick certain things off it. Even in the summer months you can find Christmas gifts and items for sale online and there may even be dedicated Christmas shops you can visit that are open throughout the year.

Set your budget

It actually helps to set a budget for each person. How much are you willing to spend on the people you need to buy for? Sticking to a budget can help you to save money.

Using the internet you’re able to compare prices and find the perfect gift for your loved ones to fit your budget.

When creating a budget it is also important to factor in what you already have. There is bound to be tinsel, baubles and more left over from Christmases past and present, so why not re-use these for the coming Christmas?

Stop making excuses

You’ll likely find yourself making excuses not to start saving early. Thinking to yourself ‘it is ok I’ve got plenty of time, I’ll start saving next month’ will set you off to a bad start.

We are all guilty of procrastinating when it comes to financial planning, but taking control of the situation, and not putting decisions off for another day, will help you become a Christmas saving maestro.

Remember the benefits of saving up early and how much easier it will make your life in the not too distant future - it’s amazing how quickly Christmas comes around.

It’s worth keeping in mind that no matter how far you plan ahead, there’s still likely to be at least one thing you forget or need closer to the time. The last-minute rush is something you can’t always avoid. It’s a familiar feature of the Christmas period and let’s face it; Christmas just wouldn’t be Christmas without it.

However, you can make it a lot less stressful if you save up early. You can even start saving on December 26th via the Boxing Day sales. Just save as much as you can throughout the year and it will really pay off come the festive season.

Sources:

* http://www.yourmoney.com/your-money/news/2306740/early-christmas-shoppers-save-gbp42bn-a-year

** http://cards.asda.com/christmas-savings-card/about

How to eat healthily and help your wallet

Ian Houghton — Thu, 02 Jan 2014 19:00:17 GMT

Eating healthily does not have to break the bank. In fact, preparing fresh ingredients from scratch can often be cheaper than buying ready-meals, convenience and junk food. Here are a few ways you can improve your diet, leading to a leaner, healthier you but a slightly fatter wallet...

Write a list

Writing a shopping list – and sticking to it – provides two clear benefits. Firstly, it allows you to plan your meals in advance, using common ingredients that you buy for more than one meal. Secondly, it makes you less likely to make impulse buys of junk food and items you don't need. You don't have to be totally rigid though. If you spot a healthy bargain in a promotion or sale, it can sometimes make sense to change your menu or buy extra if its an item that can be stored or frozen.

Check the labels

Read the labels on the food you buy. Don't just look for the calorific content; choose alternatives with lower salt and sugar levels where possible as well.

Cook in bulk...

It's often cheaper to buy items such as meat and vegetables in bulk. A large joint of meat can be used for several different meals and leftover dishes like soups, stews and chillis can also be frozen. Freezer bags can be suitable for this while freezing a portion of lasagne or curry in a microwave-friendly container can provide you with your own healthier ready meals.

Don't throw food away

Food waste hit the news recently when research suggested that British families threw away the equivalent of six meals' worth of food every week*. Buying in bulk can be good but only if you are able to eat or store what you buy. Don't over-buy perishables such as bread or be tempted by buy one get one free and similar offers for items you are unlikely to consume. You can also reduce waste by properly planning and measuring portions rather than relying on guesswork. This can also help prevent over-eating at the same time.

Don't skip breakfast

Breakfast is one of the most important meals of the day. Eating a healthy, nutritious breakfast will give you the energy you need and aid your productivity in the morning and can also lessen your need for a mid-morning snack to 'keep you going' 'til lunch. It's generally better to eat something than nothing at all but try to avoid breakfasts that are high in sugar and fat. Fruit, starchy foods such as bread products, cereal (preferably not covered in chocolate) and low-fat yoghurts can all make suitable breakfast foods.

Watch what you drink

Recent research suggests that around a third of Brits drink unhealthy levels of alcohol. We also either under-estimate how much we drink or are pretty bad at owning up to it, with self-reported alcohol consumption only accounting for between 40 per cent and 60 per cent of recorded sales**. It's recommended that men do not regularly drink more than 3-4 units of alcohol a day for (equivalent to a pint and a half of beer) and women no more than 2-3 units (a 175 ml glass of wine)***. 'Regularly' means drinking alcohol every day or most days of the week. Cutting down on the booze can be good for your health and your bank balance. Plus that greasy late-night kebab might not look quite so appealing when sober.

Drink plenty of water

When it comes to slaking your thirst, drinking plenty of water is definitely a healthy option. Considering the fact that you'll already be paying your water bills anyway it's essentially free if you don't have a water meter and almost negligibly cheap if you do. Fizzy pop, on the other hand, is very expensive, has very little nutritional value and is also bad for the teeth. Fruit juice is better but can still contain a lot of sugars and acid.

Cut down on eating out

Unless you automatically head for the 'healthy option' part of the menu, it's likely that you're not going to eat massively healthily when you eat out. This is especially true if you're eating fast food but even if you're dining in a fancy restaurant you might well be eating food that's too rich and indulgent than is strictly good for you. You don't have to cut out eating out altogether but cutting down and choosing the healthy options can be great for both your health and your wallet.

Aim for your five a day

Some people seem to find the prospect of eating five portions of fruit and vegetable a day rather daunting but they might be unaware that beans on toast can count as one portion. A 100% fruit juice is another, and a smoothie could even provide two. Vegetables cooked in stews, soups or pasta also count. Once you throw in a tin of peas and (hopefully) at least one fresh fruit or portion of veg, it doesn't seem quite such an impossible task.

Sources:

*http://www.bbc.co.uk/news/uk-24846612

**http://www.independent.co.uk/life-style/health-and-families/health-news/a-nation-of-secret-boozers-english-people-underestimate-how-much-alcohol-they-drink-8512382.html

***https://www.drinkaware.co.uk/check-the-facts/what-is-alcohol/what-is-an-alcohol-unit

****http://www.nhs.uk/Livewell/5ADAY/Pages/Whatcounts.aspx

Days Out: A guide to the best indoor playcentres

Ian Houghton — Fri, 29 Nov 2013 13:00:10 GMT

Let’s face it; the weather in Britain isn’t exactly the most reliable. It’s one of the few places in the world where you can experience all four seasons in just one day. It could be the height of summer and you’d still get caught out by an afternoon rain shower.

However, as the winter draws in, it’s all the more likely that the weather will take a turn for the worst. Unfortunately, that often rules out days at the beach or in the park.

With the bad weather keeping the children inside, they often end up bored and destructive. What’s more, indoor play, such as amusements, the cinema and swimming is often going to provide a bigger hit to family’s wallets than enjoying the delights of the great outdoors.

To avoid spending too much this winter, here are some of the best indoor playcentres in the UK. What’s more, if you decide to pay with a credit card you may be able to earn cash back on your booking.

Jump

http://www.123jump.co.uk/

Located in Bristol, this centre features play-frames, inflatables, party rooms, a toddler zone and a café. Jump provides a safe environment for children to play in and burn off some energy. The adults are also encouraged to join in, making this ideal for family day out.

Price: Prices vary depending on time and age, starting at 65p for babies after-school up to £8.00 for 4-12 year olds at the weekend.

Opening hours: Monday - Friday 10am to 6.30pm. Hours are extended on weekends, bank holidays and school holidays to 9.30am to 6pm.

Other centres: Cardiff and Plymouth

Jango’s Indoor Play Centre

http://www.jangosplay.co.uk/.

Located in Mansfield Jango’s play centre has been designed to allow all children, from 0-11 years old to enjoy playing. There is everything from a 6 metre Astra Slide – the largest in Nottinghamshire - to a sports area, as well as dedicated zones for babies and toddlers.

Price: Entrance for two hours play is £3.50 for one to three year olds, and £4.95 for four to 11 year olds. Children under the age of one are free. There are additional packages available for large families.

Opening hours: Monday to Sunday 9.30am to 6.30pm – last entrance at 5pm.

Run Around Play Centres

http://www.runaroundplaycentres.co.uk/

Located in Wrexham children will absolutely love the Run Around Play Centre. They provide well-designed indoor play areas, with slides, ball pools and bouncy castles.

Price: £4 per child, but under 1’s go free. There are often special offers available on the website, so it’s worth checking before paying the full price.

Opening hours: Monday to Sunday 10am to 6pm.

Other centres: Chester and Darwen

Funworld Leisure

http://www.funworld-leisure.co.uk/

Located in Greenock this is more of a family entertainment centre than one restricted to children, though Funworld Leisure has plenty of equipment to keep your little ones entertained. From the giant Pirate Ship to the 4-lane Astra slide and the 23ft inflatable climbing wall, there’s something for everyone. Parents are encouraged to join in, but there’s also the option to watch from the café.

Price: Admission fees vary depending on age and time. Two hours of play for under 5s £4.10 and £4.65 for over 5s, however, if you only want an hour, it’s just £3.50 for any age.

Opening hours: Monday to Sunday 9.30am to 6.30pm.

Mookie World

http://www.mookieworld.co.uk/

028 9048 3715

Located in Belfast this centre is suitable for kids of all ages and there is a lot of fun to be had at Mookie World. The older ones will be able to play football and basketball or dare to go on the 4-lane Astra Slide. The younger ones have a ball pool, mirrors and slides, while the babies have a safe padded area to play in. There’s even an area for quiet play.

Price: £4.95 per child, Babes in arms & adults enter for free. Reduced entry price of £3.95 Monday to Friday 9am - 1pm term time only.

Opening hours: Monday to Saturday 9am to 6.30pm, Sunday 10am to 6.30pm

The Play Providers’ Association

http://www.playproviders.org.uk/

Established in 2005, the PPA has a network of indoor play centres that provide your children with safe and fun environments to play in.

When looking for somewhere for your kids to play, it’s worth looking at the list of PPA members, as they are known for going beyond the recommended industry guidelines. This can give you peace of mind that your children will be in good hands.

What’s more, the PPA is a champion for the benefits of indoor play and supports the Change 4 Life campaign. Your children don’t have to be outside to get their 60 minutes of exercise – a trip to an indoor playcentre will have the same effect.

To find PPA approved play centres, visit the website or look out for the logo on the provider’s website.

Mummy Money Management Series: How to prepare for your children’s’ financial future

Ian Houghton — Fri, 15 Nov 2013 19:00:12 GMT

It's never been more expensive to raise a family. According to a recent study, the cost of raising a child to the age of 21 is now more than £220,000 – 58% higher than a decade ago*. Additionally, youngsters who go to university could easily find themselves owing anything from around £20,000 to more than £40,000 by the end of their course, depending on where they live and study**.

These are eye-watering figures to contemplate but there are steps you can take to help prepare for your children's financial future, both within the family home and once they have flown the nest.

Saving for your children's future

There are various types of saving accounts that pay interest on the money you put away. In general, accounts that require you to give notice before making a withdrawal offer better rates than instant-access accounts.

Individual Savings Accounts or ISAs are also popular, as you can earn interest without being charged tax on it. You can open a Junior ISA on your child's behalf and a young person can open their own Junior ISA from the age of 16. Money cannot usually be withdrawn until the child turns 18. You can also save for your children's future in your own regular cash or stocks and shares ISA. There are limits to the amount you can pay into ISAs in any financial year.

A good way of working out how much you can afford to put away on a regular basis is to make a family budget. Add up all your household income and compare this to all your outgoings. Include regular payments such as mortgage repayments but don't forget to average variable spends such as grocery shopping, money spent on nights out and annual expenditure such as the cost of a family holiday. Look back over previous bank and credit card statements and keep a 'spending diary' to get an idea of what you spend and where.

Protecting yourself and your family

It's not something most of us like to think about but how would your family cope if you or your partner were to die, or suffer a serious accident, injury or illness? Taking out personal insurance can provide a measure of protection should the worst happen, and provide you with peace of mind in the process.

Life insurance

Term insurance is the most common type of life insurance. It pays out if you die within a given period of time (the policy's 'term'). Some people take out a policy that covers them until their kids have grown up, while others match their term to their mortgage repayment or some other criteria. You can also purchase whole of life insurance. As the name implies, this provides a payout no matter when you die. This type of life insurance is generally more expensive, as the insurer is guaranteed to have to make a payment at some point.

Term insurance policies can either be level term policies, which pay out the same amount whenever you die, or decreasing term policies, which pay out a lower amount the closer to the end of the term date you get. These are often chosen by people with a repayment mortgage, with the amount of the payout decreasing to match the amount they still owe on their house. You can also buy increasing term protection, which actually increases the payout as time goes by. This is naturally a more expensive option.

The amount of cover you need will depend on your own circumstances and requirements but you should think about all the expenses your family would need to cover if you were no longer around. The cost of life insurance can vary widely depending on a number of factors, including the type of policy, the sum insured, the length of the term and your current health.

Other types of cover

There are various other kinds of insurance that can protect you against unforeseen and unfortunate circumstances. Critical illness cover, for example, will generally pay a tax-free lump sum if you are officially diagnosed with an illness or condition from a pre-agreed list, such as cancer or heart disease.

There are also different kinds of income protection schemes available. Some policies will pay a regular monthly sum if you become unable to work due to illness or injury, while others will pay an agreed sum for a set period of time if you are made redundant.

Making a will

If you die without having made a will, your estate will be divided out according to rules known as the rules of intestacy. In general your spouse and biological children will inherit but intestacy rules are not ideal for many modern family arrangements. Stepchildren do not have any automatic rights and nor do partners who are not married or in a civil partnership. If you want to be sure of exactly who benefits from your estate when you are gone, you are usually safer making a will. You can do this yourself and there are many will-making kits available but you should be aware that a will is a legal document and has to be very precisely worded. If you are unsure about making a will, you should seek professional advice.

Sources:

*www.theguardian.com

**www.telegraph.co.uk

True cost of Christmas series: The Christmas credit hangover

Ian Houghton — Wed, 13 Nov 2013 19:00:06 GMT

Christmas is one of everyone’s favourite times of the year – and why not? Families get together, kids are excited about their gifts from Santa and there’s a delicious dinner at the end of it all.

However, the festive season also comes with a downside: the cost. Millions of households up and down the UK are already struggling with their finances and debt. With Christmas looming, it’s another event that can burn a hole in your pocket.

As such, many people turn to credit to support their Christmas. In 2011, Halifax found that 14%* of people were still paying for Christmas on a credit card, overdraft or loan by February 2012.

That figure rose to 20%* for people aged between 18 and 44 years, whereas the over 45s were more sensible, with just 9%* still owing money three months after Christmas.

What’s more, almost one in 10* thought that it would take them over a year to pay back what they had borrowed for Christmas.

How long does it last?

If you are planning on using your plastic to pay for this Christmas, it’s important that you consider the after effects. Unless you’re able to repay your debts, your spending could be one of the longest hangovers you’ll ever endure.

In the Halifax survey, just 9%* thought their hangover would last just over 12 months but other figures suggest that some people could suffer a headache for 12** years.

A spend of just £500, average credit card interest of just over 18% APR and a 2.5% minimum repayment would take 11 years and eight months** to clear. The total spent would be £977** – almost double the original amount.

Will you suffer?

Not everyone using credit to support their Christmas shopping will end up having to fork out that much in interest charges though. A credit card can be a great financial tool when used properly.

The festive period is one of the best times of the year, but it it’s also one of the most expensive. After all, you have to find the perfect gifts for your friends and family, new outfits for Christmas parties and a truck-load of food for the day itself.

However, that doesn’t mean you have to plunge yourself into all sorts of financial trouble. If you learn how to make the most of your card, as well as avoid the temptation of overspending, you could enjoy this Christmas without the January hangover.

Avoiding a hangover

After a couple of weeks or months splashing the cash, the reality of the financial hangover doesn’t kick in until the bills start coming through the door in January and February.

If you haven’t been able to clear your credit cards straight away, the interest will start to build up, sending the cost of your purchases through the roof. This is the biggest problem, as few can afford to pay off their bills in full.

However, there are solutions.

• Getting the right credit card

By ensuring that you have the best card on the market for Christmas spending, you could spend the next six months paying for your purchases without spending anything on interest.

That’s not all either – the right credit card could also reward you for spending. Yes, if you like the idea of being paid cash for doing your Christmas shopping then you’re in luck.

Known as cash back credit cards, offering cash back on your purchases, these credit cards credit your account based on percentage of your spend. You can either choose to spend your reward on more gifts or put it towards your bill.

Savvy shoppers are able to go a step further though – once the interest free purchase period has expired, you can transfer the balance to another 0% deal.

While it’s not advisable to keep moving large sums of money without repaying the debt, it does give you longer to split the cost into more manageable monthly payments.

• Pay more than the minimum payment

Credit card providers make their money from the interest you are charged, so by paying the minimum payment you’re only lining their pockets.

To avoid paying for this Christmas in 2015, it’s best to pay off as much as possible, as soon as possible. If you’re unable to clear the debt completely, see if you could transfer the balance to a 0% or low interest card.

That’s not an option for everyone, so those that can’t get another card will need to prioritise their debts. Work out which debt is costing the most and clear that first – but don’t forget the minimum payments on other cards, loans or overdrafts.

• Cut back on ‘treats’

Many people don’t realise quite how much money they spend on small treats but cutting these out could save over £625**. Rather than spending the next year or so trying to scrape together the pennies to repay that Christmas splurge, try skipping out on a few lattes and after-work drinks.

There are a few things that most people can do to cut back, including avoiding buying cola and coffee, going home instead of stopping at the pub and taking a packed lunch rather than eating out.

Sources:

*http://moneyfacts.co.uk/news/credit-cards/borrowers-struggle-with-christmas-credit-hangover020412/

** http://www.moneysupermarket.com/c/news/how-to-avoid-a-christmas-credit-card-hangover/0012370/

Mummy Money Management Series: Creating a family budget

Ian Houghton — Wed, 06 Nov 2013 19:00:06 GMT

Starting a family is a huge commitment any way you look at it. Aside from the emotional investment and time commitments, some estimates say that it costs an average of more than £222,000 to raise a child to the age of 21*. Thankfully you don't have to consider this eye-watering sum all in one go. However, it is sensible to make – and stick to – a family budget that takes into account all your regular outgoings and also leaves a bit of wriggle room for unexpected surprises.

The basic equation is pretty simple. If you have more money going out than you have coming in, you're storing up trouble for yourself. A family budget will consider all the money you have coming into the household and all the money going out, allowing you to organise your finances better and balance the two sides. Living within your means doesn't necessarily have to mean going without. Depending on your circumstances you might have to make a few sacrifices but you will also get a great deal of peace of mind knowing your finances are stable.

Calculating your household income

Calculating your household income can be a little more complicated than you might think. Most salaries are expressed as a gross amount, before deductions such as income tax and National Insurance contributions (NICs) are taken out. Look at your payslips to find your actual take-home pay, or check your bank statement to see how much is paid in each week or month. If you are self employed and don't draw a regular wage from your business, you will have to work out your average profit over a given period of time. Don't forget to take self-assessment tax and NICs into account.

You might be in receipt of benefits such as child tax credits or child benefit and you may have other sources of income such as maintenance payments or interest on any savings you might have. Add up everything that you have coming in to get your household income.

Regular monthly or weekly outgoings

Next, add up all your regular weekly or monthly outgoings. For many people, rent or mortgage payments will be their most significant regular outgoing but there will usually be other regular outgoings to take into account, from the kids' lunch money to mobile phone bills, household insurance or the cost of a daily commute. Some people pay their utility bills on a quarterly basis but paying monthly can spread the cost more evenly across the year, rather than producing a spike at the end of the winter. It's also worth bearing in mind that energy suppliers often offer a discount for bills paid by regular monthly direct debit.

Food and grocery shopping can also be counted as a regular expense, although you may find the amount you spend can vary quite widely from one week to the next. Look back over past bills or bank and credit card statements, or monitor your spending over a period of two months or so to work out your average spend.

Irregular spending and annual payments

It's easy to underestimate how much money we spend. You might enjoy a nice latte on the way to work each morning but total the costs of a coffee shop cuppa over the course of a month and you might be surprised. Monitor your spending over a reasonably lengthy period – perhaps two or three months – to find your average spending on everything from nights out to clothes, cosmetics and lunches. It's important to be completely honest with yourself here and to record everything you spend.

You should also include any annual or one-off payments and expenditure, such as car tax and MOT, the costs of a family holiday, kids' birthdays and Christmas. Some people find it handy to maintain separate 'pots' for these annual expenses which they pay into each month and (hopefully) refrain from dipping into for any other purpose.

Once you have all your incomes and expenditures, you can work out your family budget. Some people prefer to work to a weekly budget, some to a monthly budget and some use both. In any case, you will have to convert your figures where appropriate. To change a weekly figure to a monthly one, for example, multiply it by 52 (for the weeks in the year) then divide by 12 (for the months). This is more accurate than simply multiplying by four, as there are slightly more than four weeks in each month except February. To change a monthly figure to a weekly one, do the reverse (multiply by 12 then divide by 52).

If your budget shows that your outgoings are higher than your income, you might have to do some juggling and consider your spending priorities. Some expenditure is unavoidable but the very act of monitoring your spending while you create your budget will often identify areas where savings could be made.

Expect the unexpected

Sometimes life has a habit of throwing up unexpected problems. If possible, you should always try to build a little extra into your budget in order to save for unexpected expenditure, whether they take the form of vets' bills, car repairs or anything else. This is sometimes easier said than done of course, but knowing you have a little something set aside can bring great peace of mind and prevent a problem from turning into a crisis.

Sources:

*www.theguardian.com

Days out: Best winter walks across the UK

Ian Houghton — Wed, 06 Nov 2013 13:00:09 GMT

There is often nothing nicer than going for a gentle stroll on a winter’s day. Whether you’re going alone, with the family or with your partner; there’s a walk in the UK available to suit your needs.

There are a number of things you should consider before you choose a UK walk: your fitness level, how far you want to travel and what you are hoping to see should all be taken into account.

Scottish walks

If you’re lucky enough to live in Scotland you will get to benefit from some of the most beautiful views in the UK. There are a number of excellent winter walks available and one of the most noteworthy is the Loch Morar to Tarbet route.

This stunning loch side walk enables you to get a good view of snow-capped mountains in the background. This is quite a long walk but there might be the possibility that you can get the ferry to Mallaig on the way back. If you walk the entire route it is 5.5 miles to get there, so overall it would be 11 miles there and back.

Arthur’s Seat is another great Scottish walk which you can get to from Edinburgh city centre. If you’d prefer a slightly shorter walk you can always start walking from Holyrood Park. Make sure you watch out for slippery surfaces due to ice and snow in the winter months though – particularly on the last part of the walk.

Welsh walks

If you’re heading to Wales you’ll also get to go on some of the most memorable walks in the UK. Arthog Falls in Snowdonia is a great example; situated just a mile away from Arthog village, these falls are beautiful. If you’re not used to walking, this may be a little bit of a struggle for you. There’s quite a steep climb to get to the falls. For those who are experienced walkers, you might want to venture passed the falls to Cregannan Lakes - once there you’ll get to see over the Mawddach estuary.

If you prefer forest walks you should head to Lawrenny walk in Pembrokeshire. You’ll explore an ancient forest and watch wildlife on a beautiful estuary. The walk both starts and ends at Lawrenny quay.

English walks

If you’re looking for a gentle, romantic stroll this winter, Cornwall could be the ideal place to head to.

The Sir John Betjeman walk is located in Rock, which is actually a really laid back place in the winter months. You’ll walk from the east of the Camel estuary towards the small St Enodoc Church. You’ll discover burial mounds from the Bronze Age and a Roman encampment. This makes it a great choice for those who love history and culture.

If you’d prefer to stay away from the coast in winter, head to Thetford Forest in Norfolk. This is known to be the biggest lowland pine forest in the UK. There’s plenty of chance to see wildlife such as deer, red squirrels, woodlarks and pheasants. You’ll feel like you’ve stepped into Narnia if you visit during the winter months.

There are many different paths you can take which makes this suitable for all abilities, and there are even children’s trails available if you are travelling with the family.

If you want a real challenge this winter, why not take up the 87 mile Avon and Kennet canal walk? It’s actually possible to walk all the way from Bristol right through to Reading in three to five days. Of course, this is a challenge a little too ambitious for most of us. However, you can split it down and just walk part of it. The Avon to Bath section of the route is particularly worth exploring. You’ll see narrow boats and plenty of wildlife along the way, although it is 9 miles in total so it’s a fairly long walk.

Malham Cove and Gordale Scar in the Yorkshire Dales is another walk to consider. The great thing about this walk is the fact it has something to see all the way around. There are limestone pavements, waterfalls and rock scenery to discover and in the winter the waterfalls tend to be really impressive.

These are just some of the most popular winter walks available in the UK. Winter is one of the most beautiful times to explore the country.

Perhaps one of the best things about walking is you don’t have to worry about whether you’ve got your credit card. It’s completely free; you just have to worry about getting there if you don’t live near a particular walk you’re interested in going on.

It’s important that you never attempt to go on a walk that you aren’t fit enough to go on, so always take your ability into account when choosing where to go. Also, remember to pack essentials such as water and supplies in case you get lost. It’s unlikely, but it pays to be prepared.

True cost of Christmas series: The true cost of the Christmas spread

Ian Houghton — Wed, 06 Nov 2013 13:00:05 GMT

Ever since the 1980s, US bank PNC Wealth Management has issued a 'True cost of Christmas' index. The tongue-in-cheek publication tots up the costs of obtaining all the items in the popular carol 'The Twelve Days Of Christmas' and has seen these costs soar from $61,000 (£38,000) in 1984 to more than $107,000 (£67,000) in 2012. Key factors in last year's index included a dramatic increase in gold prices (for the 5 gold rings) and a rise in the cost of hiring 11 pipers piping and 12 drummers drumming*.

This is clearly just a bit of fun but on both sides of the Atlantic the true cost of the Christmas spread can be significant. According to a survey by consumer association Which?, the majority of consumers in the UK spent less on Christmas in 2012 than they did the previous year. Despite this, nearly half (46 per cent) resorted to some sort of borrowing**. Most used credit cards but 12 per cent used authorised overdrafts, 8 per cent used store cards and one in twenty borrowed money from family or friends. The average amount put on creditcredit, including both cards and other methods, was £301. Those who dipped into savings did so to the tune of £380.

YouGov estimated that Brits spent £835 per household on the festive season last year***. The bulk of this expenditure (£634) went on gifts, with more than half of us buying nine or fewer and 3 per cent blitzing the shops for a dizzying 50 or more. Food and drink accounted for £161, with 20 per cent spending more than £75 on Christmas dinner alone. Christmas trees and decorations made up a further £40.

In 2013 confidence – and spending – might well be up. A report by market research specialist Verdict suggests that fourth quarter spending in the UK would rise 2.2 percent from the same period in 2012 to £88.4 billion, signifying the best Christmas sales growth since the financial crash in 2007****. Whether you intend to up your spending or not however, is your choice.

Plan ahead

Planning your spending in advance can help you to avoid splashing out on expensive panic buys or impulse purchases. Write a list of what you need to buy, plan a budget of what you can reasonably afford and stick to them both.

Don't forget the regular bills

Christmas can sometimes seem like a priority but don't forget that you still have to pay the rent or mortgage payments, regular food bills, utilities and other regular obligations. Build these payments into your budget and consider what you can afford to spend on Christmas after you've made all your regular payments.

Consider your credit options

It's obviously better if you can get through Christmas without going into debt but if you do borrow, shop around and consider the best methods. Authorised overdrafts can be useful if you can pay them back quite quickly but never run up an overdraft without clearing it with your bank first as the charges can be very expensive.

If you use credit cards, the most efficient way is to pay off your balance in full by the due date on your statement. Most credit cards have an interest free period and, as long as you pay what you owe by that time, you will not be charged any interest. If you are not able to pay off the full balance, look for cards with low rates of interest. Some cards offer a 0% rate on purchases for an agreed period of time. If you have not paid back the balance by the end of the promotional period however, the interest will revert to the card's standard rate.

Make your payments

Christmas can be a busy time but don't miss payments on any loans, credit cards or other credit arrangements you have. If you do, you could be charged late payment fees and potentially lose any promotional rates you have. It could also damage your credit rating. A good way to ensure you don't miss your credit card or other payments is to set up a direct debit to cover at least the minimum payment amount.

Start early for next year

Once one Christmas is out of the way, you can start planning ahead for the next one. You might have had your fill of Christmas spirit by January 1 but imagine how good it will feel not to be running around like a headless turkey the week before Christmas next year. If you need to replace or freshen up your decorations, you can usually get them at knock-down prices straight after Christmas. The same goes for cards, wrapping paper and other essentials and the January sales can afford a great opportunity to buy bargain gifts that will keep and can be stored away. If you're still paying for this Christmas come January, you might have to wait a while but starting your Christmas planning as early as possible can really help spread the cost.

Sources:

*www.pcn.mediaroom.com

**http://www.bbc.co.uk/news/uk-20869522

***http://yougov.co.uk/news/2012/12/05/brits-spend-less-christmas/

****http://www.reuters.com/article/2013/10/14/uk-retail-christmas-idUSL6N0I41CU20131014

Security Series: A guide to online purchasing security

Ian Houghton — Mon, 04 Nov 2013 19:00:26 GMT

The world is increasingly doing its shopping online and eCommerce now represents a sizeable chunk of all retail spending. In June 2013 UK shoppers spent £586.9m a week online, an increase of more than 18% compared to the same period the previous year. If you remove fuel from the equation in fact, almost 10% of all retail spending during that period took place online1. This included eCommerce vendors that specialise or sell predominantly online, stores that offer online sales alongside traditional services and 'non-store' retailers such as eBay.

But how safe is shopping online and how can you make sure your transactions are secure?

Use security software

You should always make sure you have adequate security software installed whether you are shopping online or simply surfing the net. A firewall analyses incoming and outgoing signals and essentially acts as a safety net or barrier between your computer and potential threats online. Operating systems like Windows come with their own firewalls but you can also install third-party products.

You should also install good quality anti-virus software. This will help protect against not only viruses but also against other types of malicious software or malware. Make sure you keep your security software up to date as online threats are constantly evolving.

Beware also of common scams such as 'phishing'. This is where a fraudster contacts you, generally by email, and fishes for information by purporting to be a legitimate business. The email could be very convincing and could also link to an authentic looking but decidedly fake site. Never click on a link in an email or give out financial or other personal information. When you want to visit the website of your bank or a particular retailer, type the address into your browser rather than clicking a link.

Look for secure sites

If possible, you should only make transactions on secure sites. These are sites that use encryption technology to scramble any information you send, such as your creditcredit or debit card number and postal address.

Secure sites can be identified in a number of ways. The website address should begin with ‘https' rather than 'http' with the extra 's' standing for 'secure'. There will also be a padlock symbol in the browser window frame. The exact location of this symbol may vary depending on your browser but make sure it is in the browser frame and not on the web page itself. Some fraudulent websites will display the security symbol somewhere near the top of the page. Clicking on the padlock icon will give you detailed information on the security status of the website.

Some browsers will also display the website address in green if it is secure. Bear in mind that some sites have secure pages – typically those dealing with checkout and payments – without every page on the site being secure.

Try to do business with sites you already know or, if they are unfamiliar, do a little digging to see if the company is generally considered trustworthy. If you are unsure about a site, it might be best to avoid it.

How to pay

The most common ways to make purchases online are by using debit and credit cards or electronic money services such as PayPal and Google Checkout.

Using a debit card transfers funds directly from your bank account. With a credit card you are essentially borrowing the money from your card provider but most credit cards have an interest-free period. This means that, as long as you repay your balance in full by the due date shown on your statement, you will not be charged any interest and the process will cost you no more than if you used a debit card. Some vendors will, however, charge their own additional fee if you pay by credit card. Credit cards also offer extra protection under Section 75 of the Consumer Credit Act. Under this rule your credit card company shares equal responsibility with the retailer or trader for the goods or service supplied. The item or service you bought must cost between £100 and £30,000 to be covered.

Services like PayPal and Google Checkout act as a link between the buyer and vendor. This means you do not have to share your bank or card information with the vendor directly. Most online payment services also offer other features such as dispute resolution if there is a problem.

Consumer rights and other issues

Alongside any protection you might have from your credit card or electronic money service providers, distance selling regulations apply to online sales.

Before completing any transaction, you should be given the complete cost, including postage and packaging charges and any taxes to be applied. Terms and conditions should be easily accessible and able to be stored and/or printed.

You will usually also have a 'cooling off' period, allowing you to return goods or cancel a contract within a stated time of receiving them. Cooling off periods do not apply under certain conditions, such as when you buy through an online auction, or when you purchased perishable goods or personalised items that have been made specially as per your order.

Sources:

*www.ons.gov.uk

Days out: Where to try out winter sports in the UK

Ian Houghton — Mon, 04 Nov 2013 19:00:21 GMT

If you’re looking for a little excitement close to home this winter, it could be worth going along to a winter sports centre. There are many different ones to choose from in the UK.

While the majority of the centres are indoors, there are parts of the country where you can experience outdoor skiing and snowboarding. Below you’ll find the best places to head to in the UK if you’re looking for to experience an adrenaline rush.

Winter sports in Scotland

There aren’t many parts of the UK where you can experience natural skiing at its best, but Scotland is one of them. There are five different centres available in Scotland including:

• Cairngorm

• Glenshee

• Glencoe

• The Nevis Range

• The Lecht

Cairngorm Mountain is one of the most challenging mountains in the UK. It provides beautiful scenery and is located right near the A9 arterial route.

If you’re travelling to the area in late January you’ll even get to witness the Aviemore Dog Sled Rally. More than 200 teams of huskies and Malamutes take part in this annual competition.

One of the main features of this resort is the funicular railway. You can take a trip to the Ptarmigan Top station where you’ll get to see stunning views over the area. If you don’t have your own equipment you can hire it while you’re there.

Glenshee features more than 2000 acres of skiing and caters to all abilities. There are four mountains and three different valleys to experience. It’s been used as a skiing area since the 1930’s and it also provides excellent snowboarding facilities.

Glencoe is a great place to head to if you’re looking for a centre with a relaxed and friendly atmosphere. It was actually the first commercial centre in the country to open in 1956 with a ski lift. While all abilities are welcome, it is especially popular with more advanced and dare devil skiers. It has one of the most challenging black runs in Britain known as ‘The Fly Paper’. It’s Scotland’s longest descent and definitely not for the faint hearted!

The Nevis Range is the most recent winter sports centre opened in Scotland. Ben Nevis is the stunning backdrop for this resort and it features great off-piste skiing opportunities. The snow actually lasts on the mountain until early May most years. You can get to the base of the centre via a gondola.

The Lecht is the perfect place to head to if you’re travelling with the family. The main goal of the centre is fun for both adults and children alike. As well as skiing and snowboarding, you can take part in devil karting, snow tubing and quad biking.

Winter sports in the rest of the UK

Scotland does seem to have the edge when it comes to winter sports centres. However, no matter where you live there’s bound to be a centre near you. If you live in the North West the ‘Chill Factor’ is a great centre to head to. Located 4 miles away from Manchester, it features a 180 metre real-snow slope. There’s even chance to enjoy a spot of shopping on Alpine Street. Lessons can be booked no matter what your ability level. There are also plenty of other winter activities to take part in including tubing and luging.

Ski Plex is ideal for those who are serious about improving their skills. You can find centres in Reading, Basingstoke and Chiswick. There are even mirrors available that help beginners with their technique. Ideal for all abilities, if you want to practice and maintain your ski slope muscles this is a great centre to head to.

If you live near London, The Snow Centre in Hemel Hempstead is the perfect place for winter sports. There’s a 160 meter slope alongside an indoor lesson slope. It’s particularly ideal for skiers and snowboarders and it features a great restaurant and café.

Things to consider when looking for winter sports in the UK

As there is so much choice available, you need to determine what you’re looking for from a UK winter sports centre. Are you looking to have a little fun or would you seriously like to practice your skills? If you’re travelling with the family you’ll want to ensure you’re choosing a family friendly resort. They have other activities available as well as skiing and snowboarding.

You also need to take into account whether you want lessons or not. Most centres offer a range of lessons; though it is something you should check before you go. The above are just some of the best centres in the UK. Scotland is definitely the best place to head to in terms of real snow skiing opportunities.

If you are putting any part of your winter ski trip on credit, ensure that you find the best credit card available for your needs.

A guide to contactless payment technology

Ian Houghton — Mon, 04 Nov 2013 19:00:17 GMT

Many people have become accustomed to using plastic as a convenient alternative to cash. It's quite common these days to whip out the old debit or credit card when making a purchase and, for many users, the chip & PIN process has become more or less second nature.

Even if you've never used a contactless payment card, you've probably seen the adverts promising that this is the future of minor transactions. An increasing number of debit and credit card providers are implementing contactless payment technology into their cards and an increasing number of retailers are accepting them.

But what exactly is contactless payment technology? How does it work, where can it be used and, perhaps most importantly, how secure is it? Read on for the answers to all these questions.

What is contactless payment technology?

Contactless payment is a way to make small payments (at one time this meant £15 or less but the maximum payment is currently £20) without the need to physically place your card into a reader and enter your PIN. It is sometimes known by other names, such as 'pay and go' or 'tap and go' payment.

Contactless payment can currently be used with debit, credit and prepaid cards. Contactless cards are essentially the same as any other debit, credit or prepaid card but with the extra option to make contactless payments built in. Debit cards take the payment directly from a linked banked account while credit cards access a pre-agreed line of credit (known as the card's credit limit). This effectively allows you to borrow money whenever you want and pay it back at a later date.

With a prepaid card you 'load' the card with funds from your bank account and can then use it until the pre-loaded funds are spent or you top it up again. You do not need to maintain a separate account for contactless payments and you will not usually be charged any extra fees. You can also use your cards to make chip & PIN purchases or to withdraw cash at an ATM where appropriate.

In the future it may also be possible to make contactless payments via mobile phones and other devices.

How does it work?

Contactless payment needs two basic components. Your card must have a special built-in chip and a tiny radio frequency antenna. These are used to transmit your payment details wirelessly. In order to use a contactless card, your vendor must have a contactless payment reader. This receives the payment details for processing.

To make a contactless payment, you simply wait for the vendor to ring up the sale then hold your card close to the reader. It may take a second or two to register and will acknowledge the transaction with a beep and a message on screen. The major card providers both have their own systems (PayPass for Mastercard and PayWave for Visa) but they essentially work in the same way.

How widespread is it?

Contactless payment is still in its infancy but it is being rolled out to more and more vendors and services. London 2012 was billed as the 'cashless Olympics', with retailers at all the official sites geared up to accept contactless payments. Contactless payments are currently accepted at more than 500,000 locations in 48 countries worldwide*. You can tell whether a particular location accepts contactless payment by the universal 'contactless' symbol, which looks like an expanding Wi-Fi signal and a hand holding a card.

How safe is contactless payment?

There are two basic questions that many people ask when considering the safety of contactless payment technology. The first is whether you can inadvertently pay for someone else's transaction or otherwise be charged simply by walking past a reader with your card in your wallet, bag, purse or hand. Thankfully, this is not the case. The card must be held steadily against the reader for a second or so at a very close distance. This is generally about 4cm or less.

The second question revolves around the fraudulent use of lost or stolen cards. It is a fact that a contactless card in the wrong hands can be used to make a series of small transactions. It cannot be used for transactions of over £20 without knowledge of your PIN however, and most card providers will cover you against fraudulent use as long as you were not negligent (such as lending somebody the card) and report the card missing as soon as you notice it is gone.

As an added protection, contactless card users will still sometimes be asked to make a chip & PIN payment instead of a contactless payment. These instances are randomly selected so do not worry or be embarrassed if you are attempting to make a legitimate contactless payment and are asked to make a chip & PIN payment instead. This is a standard security procedure.

Sources:

*www.mastercard.com

Security Series: Keeping your personal information safe on social media

Ian Houghton — Fri, 01 Nov 2013 19:00:05 GMT

Social media sites have become an increasingly popular way of staying in touch with existing friends and meeting new ones online. In 2012 Facebook announced that it had finally broken the barrier of more than a billion active monthly users*. To put that in some sort of context, that's one in seven of the entire world's population.

Facebook is the undisputed market leader but there are many other social media platforms available. Sites like Twitter and the image-sharing site Pinterest are hugely popular and in China, where Facebook and Twitter are officially banned, Sina Weibo claims to have more than 500 million users**.

Social media networks are a truly global phenomenon but they can pose a risk. You wouldn't volunteer your personal information to a complete stranger in person but all too many social media users make information accessible that really should be kept private. Identity theft, harassment, cyber-stalking, and even 'real-life' burglary could all be potential risks.

However, by taking some basic precautions and limiting the personal information you make available, you can enjoy all the benefits social media sites have to offer while minimising these risks.

Think about what goes on your profile

You should always be very careful about what personal information you make visible on your profile and posts. Never post your phone number or postal address and think very carefully before making your email address generally accessible. Never share financial information such as credit card details with anyone via a social media site. Personal details can be used by fraudsters looking to commit identity theft amongst other things.

You should also consider the sort of pictures you post and think about everything you say online. Some employers will search for current or prospective employee’s social media footprint. If you don't want a compromising snap or comment to embarrass you in front of employers, relatives or anyone else, don't put it up there in the first place.

Make use of privacy settings

Most social media sites have privacy settings that allow you to choose who can access certain parts of your profile and posts. Make sure you familiarise yourself with the way these settings work and set your profile to 'closed', 'private', 'friends only' or a suitable equivalent.

You should also use a strong password and make sure you keep it private. Numerous studies have shown that far too many people still use easily guessable passwords like '12345' or even 'password'. Try to avoid using passwords based on birth dates and other information that people may be able to guess or access from other sources.

Be wary about who you trust

Privacy settings are useful but their effectiveness will be limited if you constantly accept random strangers onto your friends list. This doesn't mean you should never accept or extend friend requests to people you don't know in real life. You may find someone online who shares your interests or whom you otherwise find you have a connection to. In general though it makes sense to limit your contacts as everyone on your list will have access to elements of your profile and posts that others will be barred from. Don't assume you can trust everyone that you 'meet' online and exercise a healthy degree of wariness.

Don't advertise your location

With the increasing popularity and affordability of smartphones and tablets, social media is becoming increasingly mobile in nature. Some social media sites offer features or apps that can show your current location based on GPS technology built into your smartphone or other mobile device. These can be fun but they can also pose potential risks, as people will know where you are and when you are away from your home.

For similar reasons, you should avoid broadcasting the fact that you are going away on holiday or leaving your home for an extended period of time. For many people, sharing holiday snaps can be one of the joys of the social media but wait until you've got back before making a general announcement.

Take standard malware precautions

Third-party apps made available through social media sites can be sources of spyware and other more serious forms of malware. Always make sure you have good quality anti-virus and malware protection running. This doesn't apply just to social media sites, but any time you are online. Malware can take various forms and have various malicious effects, from hijacking your browser to harvesting personal information. Don't click on links unless you trust the source and don't respond to messages from people you don't know that ask you to visit a particular site or provide personal information.

How to protect your kids on social media sites

If you have older kids and particularly teenagers, it's likely that they are active on various social media sites. Take the time to get involved in your children's online lives and talk to them about the various aspects of social media precautions already outlined above. If you think that your kids may be accessing websites or content that is not age-appropriate, think about installing internet filtering, monitoring or blocking systems. Remember that children might not only be accessing the internet via the family computer.

Ensure that your children are aware that people they chat to online might not always be who they say they are. Make sure they know to tell you before meeting anyone they have only met online and encourage them to tell you if they are being bullied or harassed online.

Sources:

*www.bbc.co.uk

**www.forbes.com

A guide to using your credit card responsibly

Ian Houghton — Tue, 15 Oct 2013 13:00:24 GMT

The economic downturn has led to more people keeping a closer eye on their finances, with impulse buys becoming less and less common. However, it's not just one-off luxury purchases that consumers are avoiding; many are also trying to make savings on anything from everyday essentials to their monthly household bills.

Credit cards can be very useful financial tools when they're used effectively, but get it wrong and you could end up sliding into debt.

However, if you are able to manage your credit and demonstrate that you know how to use your card responsibly, making payments on time for example, using a credit card may help to improve your overall credit rating.

Take a look at these tips to help you use a credit card effectively and make the most of the benefits it can provide.

Pay off the balance in full every month

Although you might only be required to pay a minimum payment each month, this is the most expensive way to borrow as it takes much longer to clear your balance. As well as potentially costing much more due to the added interest charges, there are other benefits to clearing the balance straight away. Reducing the amount you owe will help your credit score and potentially increase the amount of credit available to you.

Only buy what you can afford

A credit card shouldn't be used to spend money you don't have, rather it should be viewed as one of the many methods of payment available to you. If you can't afford to keep up the monthly repayments (at the very least) you shouldn't be borrowing. It's important that you are a responsible borrower as excessive spending is one of the quickest ways to get into debt.

Don't max out your card

Although your credit limit might be £1,000, it's important to try and stay within at least 30% of the limit. By using all your available credit, lenders will get the impression that you are in financial difficulty. Higher balances are also much harder to manage than those that are lower and could lead to you accidentally exceeding your limit. If you go over your credit limit, you'll likely get charged a fee and it could also impact on your credit rating.

Avoid cash withdrawals

Withdrawing cash from the ATM will incur additional charges and probably won't benefit from any interest free period. As a result it is always best to check charges for using this service.

Look out for cashback deals

When used responsibly credit cards can be useful. Users might be able to benefit from cashback rewards, where money is earned for every £1 spent on the card. For example, the Asda Money Credit Card offers 1% cashback on fuel, clothes and groceries from Asda, but also 0.5% on all other spending.

Transfer the balance

If you have a card that is charging a high APR, it might be worth transferring the balance to another. The Asda Money Credit Card offers 12 months with 0% interest on balance transfers, giving you the chance to clear your balance more quickly. There is a balance transfer fee, but this often works out a lot cheaper than 12 months of interest.

Watch out for annual fees

Some credit cards can come with annual fees attached. While some of these might just be a few pounds a year, some can be as much as £100 a year. However, Asda Money credit card holders benefit from no annual fee.

Don't make too many applications

It's not a nice feeling when you're declined for a credit card, but don't make the mistake of applying for too many. Although it's true that just because one lender has rejected your application, another might not, too many applications in a short space of time may be viewed by lenders as a sign of financial stress*.

Sources

*http://www.experian.co.uk/consumer/credit-education/improve-credit-rating.html

Representative example:

Standard Purchases: 14.9% p.a variable.

Representative 14.9% APR variable.

Total amount of credit £1200.

This is for illustrative purposes only and actual total amount of credit may differ.

A Guide to Credit Card Charges Abroad

Ian Houghton — Tue, 15 Oct 2013 13:00:09 GMT

The benefits of paying by credit card when travelling abroad have long been discussed by holidaymakers.

Not only do they offer protection for purchases of between £100 and £30,000* but they also provide an efficient way of making larger payments for those holidaymakers not keen on carrying around vast swathes of foreign currency.

However, there are some drawbacks to spending on plastic in a foreign country – namely the fees and charges associated with overseas transactions. It might not be a problem for light shoppers, but heavy spenders could find that fees and charges soon add up.

By gaining an understanding of what charges and fees they are likely to incur when using their card, Brits abroad can make a more informed choice about their spending.

What are the fees?

Before jetting off on holiday it would be beneficial to find out exactly what the fees and charges are for credit card spending. Checking the details before you fly will mean that you know exactly what to expect and can help you work out the best way to spend abroad.

There are a number of different fees to take into consideration when using a credit card abroad. This can include a ‘foreign exchange commission’ or 'foreign loading fee' of up to 2.99% each time the card is used** as well as ATM withdrawal fees.

Pay in local currency

When paying by credit card, retailers might give the option for paying in local currency or sterling – particularly popular in tourist resorts. If you are given the option, choose to pay in the currency of the country you’re visiting.

This is because you can't be sure of the exchange rate and the commission the retailer will take for doing the conversion.

Avoid cash withdrawals

Making ATM withdrawals with a credit card is always going to be pricey, even in the UK, but the cost can be a lot higher in a foreign country. This is down to the charge for a cash advance, often around £3, and the fact that interest charges apply as soon as the cash is withdrawn.

If it's impossible to avoid a withdrawal, try and limit it to just one.

Don't buy currency

Exchanging your pound sterling to a foreign currency is something that most people do before leaving for their holiday, but purchasing currency with a credit card could mean you incur additional charges.

However, with the Asda Money Credit Card, you can buy Asda Travel Money without paying a penny in fees. Whether you're buying online, over the phone or even in one of the bureaux, you'll be able to benefit from the 'no fee' offer.

Speak to your card issuer

It's worth letting your card provider know about your holiday before you travel because suspicious activity can cause some card issuers to block transactions for security reasons. If you haven't informed the card issuer about your travel plans, they might assume you're a victim of fraud.

Having payments blocked can be confusing and embarrassing at the best of times, but trying to figure out what's gone wrong in a foreign country can be ten times worse.

Credit vs. debit card

A credit card is just one of several payment methods you can use on holiday. Prepaid cards and debit cards are the main alternatives. However, it is important to note that that a 'foreign exchange fee' and cash withdrawal fee may also apply to your debit card spending abroad**. Prepaid cards may also be subject to withdrawal fees***.

Sources

*http://www.theukcardsassociation.org.uk/section_75/index.asp

** http://www.which.co.uk/money/bills-and-budgeting/guides/travel-money/best-debit-and-credit-cards-for-spending-abroad/

*** http://www.which.co.uk/money/credit-cards-and-loans/guides/prepaid-cards/euro-and-dollar-prepaid-cards-reviewed/

Representative example:

Standard Purchases: 14.9% p.a variable.

Representative 14.9% APR variable.

Total amount of credit £1200.

This is for illustrative purposes only and actual total amount of credit may differ.

Days Out Series: A Guide to Autumn Festivals

Ian Houghton — Thu, 10 Oct 2013 19:00:12 GMT

As the weather turns colder and the leaves on the trees change colour, the UK festival scene prepares for another busy season. There are numerous festivals held throughout the country in the autumn months. From food festivals to arts festivals; there’s something to suit everyone. Some are even free to enter, but most do charge admission.

The Great Bath Feast – October 1st until October 31st

Bath is one of the UK’s favourite cities. In autumn it really comes alive thanks to the Great Bath Feast festival. Serving up some of the finest food and drink in the country, there will be appearances from top chefs such as Mary Berry, Raymond Blanc, Michael Caines and Angela Hartnett. Farmers markets, street food, locally brewed beers and tasting menus will all be available throughout the festival.

Ealing Autumn Festival – October 11th until October 27th

This year marks the 4th anniversary of the Ealing Autumn Festival. Celebrating heritage, art and culture over a period of two weeks; this is a must visit festival for all art lovers.

More than 30 different organisations in Ealing take part in the festival offering children’s crafts, rock opera, history exhibitions and public action art. Even the British Museum will be participating this year.

There will also be a special opera performance of ‘Noye’s Fludde’ which will be staged to celebrate Benjamin Britten’s centenary. The festival will be hosted by 12 venues and visitors can enjoy more than 30 events.

Torridon Walking Festival – October 12th until October 14th

The Torridon Walking Festival is in its third year and is a great way to enjoy autumn in Scotland. There are walks available to suit all abilities and an introduction to scrambling for those who would like to learn new skills. You’ll need to take along kit such as waterproofs and walking boots to make the most out of the experience.

The Big Apple Harvestime Festival – October 12th until October 13th

For those who live in or around Herefordshire, the Big Apple Harvestime Festival is worth a visit. It celebrates apples and cider making and visitors get the chance to see the orchards, cider mills, farms and barns. Several events will be running over the two-day festival. In celebration of its 25th anniversary, all venues will also be free to enter.

Canterbury Festival – October 19th until November 2nd

The annual Canterbury Festival is an international arts festival that takes place from mid-October until the beginning of November.

This year there will be a new attraction on offer. The ‘Spiegeltent’ will be running for two weeks at the St Lawrence Cricket Ground. There will be comedy, circus and cabaret events held in this colourful venue.

The actual festival itself will feature talks, comedy, theatre, exhibitions, world music, family attractions and walks to take part in. Tickets can be purchased for specific events.

Isle of Wight Walking Festival – October 25th until October 28th

The Isle of Wight Walking Festival is one of the biggest walking festivals in the country. It features more than 100 different walks and 30 of those have a dinosaur theme. This makes it ideal for families.

Walking festivals can be a great way to keep the family fit, spend time together and take in the country’s natural beauty. They’re also free which means you can enjoy them even if you’re on a tight budget.

Freeze Festival 2013 – 27th November until December 1st

Located at Clapham Common, the Freeze Festival is a unique attraction that lets you see a different side of the UK’s capital.

The man-made alpine wonderland will be hosting a brand new event this year – ‘Hail the Rail’. International snowboarders and skiers will be able to compete for a £14,000 prize.

Other activities you can take part in include talks, movies, a snow bar and a spot of spending in the shopping village.

London Restaurant Festival

If there’s one festival that will really get your taste buds tingling, it’s the London Restaurant Festival. This event brings together both existing top chefs and up and coming new talent. You’ll get the chance to enjoy meals at top restaurants at discounted prices, so you may be tempted to get your credit card out on occasion.

Participating restaurants include The Ritz in Piccadilly, Marco Pierre White and Yauatcha. One of the featured events of this festival is ‘Eat Film’ where Jonathan Ross will assist in cooking a three course meal inspired by ‘Spirited Away’ one of his favourite films.

These are the top festivals to look forward to in autumn 2013. No matter which part of the UK you live, there will be a festival near you. Many are free to enter and they provide a chance for the whole family to try something different and enjoy a fun day out. Take a look at your local area tourist website to see which autumn festivals are taking place near you.

Debit cards vs. credit cards – which option is right for you

Admin — Tue, 13 Nov 2012 19:00:16 GMT

Debit cards and credit cards both provide ways to pay for goods and services without the need to carry cash or write out a cheque. Both types of card look similar and can be used to make payments in a similar way. They work in different ways however, and both offer distinct benefits and drawbacks.

What is a debit card?

A debit card allows you to access money you already have in your bank account. It can be used instead of cash to make payments, either online or in person. When you make a payment using your debit card the payment amount is taken directly from your bank account.

Most debit cards can also be used to withdraw money from a cash machine. This is taken from funds already in your account. You can generally perform other tasks at a cash machine like checking your balance, changing your PIN and even topping up a mobile phone account. Your bank will not usually charge you for withdrawing cash with your debit card, but the operators of some cash machines may charge a fee. Some merchants will also offer a 'cashback' service, allowing you to obtain cash along with your purchase as long as you have sufficient funds in your account.

Benefits of debit cards

• Debit cards draw from existing funds so you will not be able to run up a debt by using them.

• Quick and easy access to cash via cash machines.

• Debit cards are often available for free as part of an account opening.

Drawbacks of debit cards

• You can usually only spend what you have in your account. Debit cards do not allow you to borrow money or access a line of credit, although overdraft facilities may available.

What is a credit card?

When using a credit card, you are borrowing money every time you make a purchase or payment with it. A large number of credit cards will have an interest free period on purchases. Provided you manage to pay your balance in full by the due date each month, it is unlikely that you will be charged interest of any kind. However, if you fail to repay the agreed amount by the end of the month, you will almost certainly have to deal with the issue of interest charges.

Benefits of credit cards

• Credit cards provide you with a pre-arranged line of credit, essentially allowing you to borrow money when you need it. If you pay the balance by the due date there will usually be no interest to pay.

• Credit cards may offer optional services such as balance transfers and cash advances. Some also have incentive schemes such as cashback or reward points when you make purchases or payments with the card.

• If you have a poor credit rating or have no credit history you may still be able to get a credit card specifically designed for people in your situation. Using such a card can help you to repair or build your credit rating, allowing you to obtain credit more easily in the future and at preferential interest rates. The interest rates on credit cards aimed at people with poor credit ratings do tend to be high. Like most other cards, however, they will usually also have interest-free periods, so as long as you repay the balance each month this needn't be a problem.

Drawbacks of credit cards

• It is possible to run up debts if you do not pay off your balance in full each month. For longer-term borrowing, personal loans may offer better interest rates.

• Interest-free periods do not usually apply to any cash advances.

What other types of card are there?

There are a number of variations of debit and credit cards available. These include:

• Prepaid cards

These basically work in a similar fashion to a pay-as-you-go mobile phone. You 'load' the card with funds from your bank account and can then use the card to make payments until that money runs out. You can generally top up the card at any time up to a maximum amount.

• Charge cards

This is a special type of credit card that has to be paid off in full each month. This can help prevent you building up a debt on the card over time.

• Store cards

These work like credit cards that can only be used within a specific store or retail group. Some may offer discounts or other incentives to customers who shop in the store. The interest rates are often higher than those on regular credit cards however and they can be expensive if you do not pay off your balance in full each month.

Applying for a credit card online – what do I need to know?

Admin — Tue, 13 Nov 2012 19:00:12 GMT

Credit cards offer a quick, convenient and relatively safe way to pay for goods and services. These days many credit cards can be applied for online. You may still have to wait for a decision, but applying online can streamline the process. Some providers promise 'instant decisions' and some credit card offers may only be available to those who apply online.

Finding the right credit card for you

There are many different credit cards available and the best one for you will depend on your own requirements and circumstances.

Credit cards work by giving you access to a pre-arranged amount of credit. Essentially you are borrowing money every time you make a purchase or payment using your credit card. Most cards have an interest free period on purchases and, as long as you pay your balance in full by the due date each month you will not usually have to pay any interest. If you have an outstanding balance you will usually have to pay interest on it. The amount of interest charged varies from card to card and this rate is an important factor for many people in choosing a credit card.

Other customers may be looking for a card that has a low or 0% balance transfer rate or one that offers incentives such as cashback. Some cards are designed with people with low credit ratings in mind. There is no such thing as a one-size-fits-all card and you should decide which is the best for you before making an application.

Applying online

You must be over 18 and a UK resident to apply for a credit card. When applying for a credit card online you will be asked to provide information including your name and address, bank account details, annual income and details of current debts and existing lines of credit. You should answer all questions fully and honestly. Failure to do so could delay the application process or even leave you open to accusations of fraud.

It's important to apply for credit cards that are suitable for you. If you have a poor credit rating or do not meet criteria such as a minimum income level you should probably avoid applying for 'premium' credit cards. Every time you apply for credit – including online applications for credit cards – it will show up on your credit report. Applying for a number of different cards in a short space of time can have an adverse effect on your credit rating.

How long will it take?

The time it takes to receive a decision can vary depending on the credit card provider. It will generally take a number of days while they check your details and credit record. Some providers offer 'instant decisions' online. These may arrive within minutes but issuers may decide they require more time, especially if there are issues with your credit history.

Even if you are successful in an online application you will usually have to sign an agreement on paper. This will be sent to you by your credit card provider. You should read it carefully and sign and return it if you agree with the terms and conditions. Your card will then usually be sent to you in the post. Your PIN will usually be sent separately and can usually be changed to one you can easily remember at an ATM.

Computer security

It makes sense for anyone who uses the internet to ensure that their computer is properly protected. This is even more important if you use online banking or enter sensitive information on things like credit card applications. You should always maintain an active firewall and reliable anti-virus software. Trojans and other viruses can be used by fraudsters to obtain information stored on your computer or to monitor keystrokes (the things you type on your keyboard) and the sites you visit. Anti-virus programs should be regularly updated as cyber-criminals are constantly refining their methods and modes of attack.

Basic tips to avoid credit card fraud

Admin — Tue, 13 Nov 2012 19:00:08 GMT

Using a credit card can be safer than walking around with bundles of cash, but credit card fraud is still a big problem. Credit and debit card fraud fell to a 10-year low in 2011, according to Financial Fraud Action UK. It still accounted for losses of £341 million however, and every credit card user needs to remain vigilant.

Types of credit card fraud

There are many different methods criminals use to commit credit card fraud. These include:

• Fraudulent use of lost or stolen cards

Using a card that the fraudster actually has physical access to

• Card-not-present fraud

Using stolen or fraudulently obtained credit card details to make remote purchases or payments online or by phone.

• Skimming

Counterfeiting or 'cloning' an original card.

• Phishing

Obtaining credit card and other personal details by the use of fake emails

• Pharming

Obtaining credit card and other personal details through the use of fake websites that mimic legitimate organisations such as banks and credit card providers

There are also a number of basic tips that you can follow to help keep yourself and your credit card details safe.

Keep your personal details secret

Never share personal details such as your password or PIN (Personal Identification Number) with anyone and avoid writing financial information down. It is advisable to have a different PIN for every card you hold but in reality many of us would struggle with this, especially without writing the details down. Using memorable numbers can help but try to avoid birthdays which can be guessed or obtained from other sources.

You should also destroy or shred any correspondence containing personal or financial information that you don't need to keep. Many accounts and services now offer paper-free statements that can be accessed and serviced entirely online.

Keep your computer safe

Trojans and other viruses can be used to obtain personal information from your computer or to direct you to 'pharming' sites. It's important to have an active firewall and reliable antivirus software. Antivirus programs should be regularly updated as cyber-criminals are constantly refining their own tools and tactics.

Always log off credit card and other similar websites as soon as you have finished using them. This is especially important if using a public access computer such as one in an internet cafe, library or university. Never follow a link to get to your bank or credit card's website or any site where you intend to make a purchase or enter financial information. Type the address into your browser instead.

Never click on a link or open an attachment in an unsolicited email or one from an address you are not familiar with. There are many different types of phishing emails but one common approach is to pretend to be from your bank, credit card provider or another organisation such as eBay or Paypal. These emails may ask you to click on a link to verify your account details but legitimate organisations will never ask you to do this. You should delete these emails or forward them to the fraud prevention branch of the actual organisation they purport to be from.

Cold callers

As with unsolicited emails, your bank or credit card provider will never call you up out of the blue and ask to confirm personal details such as passwords over the phone. The basic rule is never to give out this kind of information if you did not instigate the call to a legitimate number.

Be cautious in shops and at cash machines

Your PIN is important information and you should always shield the card reader or ATM keyboard when entering your PIN. Never use a cash machine if it looks like it has been tampered with.

Use extra protection if it is available

MasterCard and Visa both have online protection schemes, MasterCard SecureCode and Verified by Visa. These schemes are free for MasterCard and Visa customers but you do have to register initially. You will be asked to select a password and this must subsequently be used every time you make an online purchase or payment.

Act quickly

If you lose or have your credit card stolen you should contact your provider immediately. Most providers have an emergency number that is available 24-hours a day. You will need to cancel your card and wait to receive a new one.

Even if you have not lost your card you should check statements carefully for transactions you do not recognise. If it looks like your card has been used fraudulently you should again contact your card provider immediately. They should be able to mount an investigation and, as long as you have taken reasonable precautions as outlined above, you will usually be reimbursed for any losses.

What are the key benefits of cashback credit cards?

Admin — Tue, 13 Nov 2012 19:00:03 GMT

Credit cards can offer a quick, safe and convenient way to pay for goods and services. Most credit cards have an interest free period, meaning that if you pay off your balance by the due date each month you will not usually have to pay any interest for using the card. With cashback cards you can see the benefit every time you use your card to pay for goods or services.

What is a cashback credit card?

Cashback credit cards work just like any other kind of credit card. Credit cards work by giving you access to a pre-arranged amount of credit. Essentially you are borrowing money every time you make a purchase or payment using your credit card. Most cards have an interest free period on purchases and, as long as you pay your balance in full by the due date each month you will not usually have to pay any interest.

With a cashback credit card you also get a cash reward every time you make a purchase on your card. The amount earned is worked out using a percentage system, so if you have a cashback rate of 2% you would earn £2 for every £100 you spend. This cash is usually paid on an annual basis (although the Asda version is calculated on a monthly basis) and will either be added to your credit card account, paid in the form of a cheque or credited to a nominated bank account. Purchases and payments that are refunded will not count towards cashback. Cashback is not usually available on cash advances (using your card as a cash card at a cash machine or ATM).

What is an introductory cashback rate?

Some cashback credit cards offer an introductory rate on the amount of cashback they give you. This could, for example, be 5% for the first 6 months and then drop to 1%. Introductory rates are usually only open to brand new customers.

What is an interest free period?

Most credit cards offer an interest-free period. You will have a 'due date' each month and as long as you pay the balance in full by this date you will not usually be charged any interest on purchases. This does not usually apply to cash advances. Cashback cards may have a higher standard interest rate than comparable credit cards without a cashback incentive. This means you will enjoy the most benefits from a cashback credit card if you pay off your balance in full each month. Customers who usually have an outstanding balance may find that the interest they have to pay on the balance outweighs the benefits of the cashback.

Will there be a fee?

Some cashback credit cards may charge an annual fee, particularly if they offer a high cashback rate. If this is the case, the annual fee should be taken into account when you consider the value of any cashback scheme. If you regularly spend on the card the amount of cashback earned may still outstrip any fee you have to pay. Many cashback credit cards have no annual fee, meaning they are essentially free to use as long as you pay off the balance by the due date each month.

How do the credit card providers make their money without a fee?

Whenever you make a purchase with your credit card the seller pays a percentage of the transaction to the credit card provider in the form of a commission. Essentially, the provider of the cashback credit card splits this commission with the customer.

Do cashback cards offer the same benefits as regular credit cards?

Cashback cards work in the same way as regular credit cards with the cashback acting as an extra incentive. You will be able to use the card like any other credit card to make purchases and may also be able to use optional features like obtaining cash advances and making balance transfers.

Are there any alternatives?

There are credit cards available that offer rewards other than cash for using them. These may be points for a reward scheme that can be exchanged for shopping vouchers or put towards the cost of days out, travel tickets, hotel rooms and various other products. Some cards also offer air miles that can be used to pay for or reduce the cost of tickets on participating airlines. These cards tend to work in the same way as cashback cards, meaning you will receive one point for a given amount of money spent.

The value of a reward card of this type can be trickier to work out than a straight cashback card. One reward point does not usually equal £1, so the value of the card depends on what the points can be spent on and how much they are worth when you redeem them.

Reward schemes may have special offers, meaning the points will be worth more if you spend them on certain things. Before you commit to which option is right for you, it might be a good idea to decide which type of card is right for your individual circumstances.

Balance transfer cards – what do I need to know?

Admin — Tue, 06 Nov 2012 19:00:13 GMT

A balance transfer allows a customer to transfer the money they owe on one credit card to another – typically with the transferred balance enjoying a better interest rate on the new card. Many different credit cards and providers offer this feature. The term 'balance transfer card' generally refers to a credit card with a particularly low balance transfer rate.

How does a balance transfer work?

If you do not pay off the balance in full you will usually be charged interest on whatever is left. A balance transfer is a way of paying an existing credit card balance using a different credit card. Essentially, the credit card company on the receiving end of a balance transfer pays off the old credit card debt and transfers it to their own card. You then owe the money to the provider of the new credit card.

What is a balance transfer rate?

The balance transfer rate is the amount of interest you pay on the balance you transfer. Many balance transfer cards offer a low introductory rate that may be as low as 0%. This means you would no interest at all on the transferred balance as long as the 0% rate applies. Some balance transfer rates last for the lifetime of the balance but others, especially the 0% ones only last for an agreed length of time. This is typically anything from between 6 and 18 months but could be even longer.

At the end of any introductory period the interest payable on any remaining balance will typically revert to the card's standard rate.

Will there be a fee to pay?

Most balance transfers have a balance transfer fee. This is typically around 3% but can vary depending on the provider and card. The fee is usually added to the balance when it is transferred. If, for example, you transferred £1,000 with a fee of 3%, your total balance on the new card would be £1,030. There may be a stipulation that the fee payable is a percentage or a set amount, whichever is larger. If you only transferred £200 and the fee was the larger of 3% or £20, your total balance would be £220. This would mean you had paid an effective fee of 10% for the balance transfer.

How much can I transfer?

How much you can transfer depends largely on the credit limit on your new or receiving card. The credit limit must be large enough to cover both the balance transfer itself and any fees applied. Some credit cards may also set a limit on the amount that can be transferred that is lower than the actual credit limit. This may be expressed as a percentage of the credit limit. If, for example, you were only allowed to transfer a balance of up to 90% on a card with a credit limit of £1,000 you could transfer up to £900.

Is there anything to look out for?

You should always make sure you are familiar with the terms and conditions attached to a new credit card. This can be even more important when dealing with balance transfers. If you are on a special balance transfer rate and you miss a payment date, for example, the entire balance may revert to the card's standard rate. There may also be a late payment fee applicable.

Some cards offer a low or 0% rate on balance transfers but not on purchases. Additionally, the lowest rate that applies to a particular balance is usually paid before any higher rate. This means that if you transfer a balance and then use the card to make purchases or other payments, any payments you make against the outstanding balance will be taken first from transferred balance. In the meantime the part of the balance built up through purchases will continue to accrue interest at the standard or higher rate.

Some cards do offer introductory rates on both balance transfers and purchases. The duration of these rates are not always the same however, meaning that new purchases may begin being charged at a higher rate before any transferred balance.

It's also worth remembering that balance transfers can take a while to complete. Interest may still be applied to the original account before the balance is transferred. If you meant to transfer the whole balance and clear your original card you should always check if there is anything left to pay off – even if it is only a few pence – once the balance transfer is completed.

What to do if you have multiple credit cards

Admin — Tue, 06 Nov 2012 19:00:03 GMT

Many people these days have more than one credit card. Depending on how they use and manage them, this is not necessarily a bad thing. Used sensibly, multiple credit cards can bring certain advantages. There are also potential drawbacks though.

Why use multiple credit cards?

There are various reasons people may wish to hold multiple credit cards.

The more cards a customer has, the more credit they can generally access. However, great care should always be taken that debts on multiple credit cards do not become unmanageable.

Some credit cards offer incentives such as cashback, reward points or Air Miles that are awarded whenever a card is used to make purchases and payments. Customers may wish to switch between cards to make use of these incentive schemes.

It can be useful to have a spare card or cards if a primary credit card is lost or stolen. It may take days or weeks to get a replacement. When travelling abroad it may be a good idea to keep a spare card in a separate, secure location such as a hotel safe in case your main one is lost or stolen while you are out and about. It is also be worth remembering that not all credit cards are accepted in every establishment in every country.

Some people may wish to use a single card for all their online purchases. Shopping online can be convenient and is increasingly popular but there can be a danger of online fraud and identity theft. Using a single card designated for online purchases can make it easier to spot fraudulent activity and could also help limit the damage if you ever are a victim of online identity theft or fraud.

Keeping track of your accounts

If you do use multiple credit cards it's important that you track and manage your accounts effectively. If you miss making a minimum payment you may be charged a penalty on top of any interest owed. Missing payments will also have an adverse effect on your credit rating. If you have made a balance transfer or are currently enjoying a promotional or introductory offer, it is likely that you will be paying a preferential rate of interest on any outstanding balance. Missing a payment may breach the terms and conditions of any such offer and the rate applied to your balance may revert to the credit card's standard rate.

It can also be easy to run up problematic or unmanageable levels of debt if you do not keep track of your spending and repayments over multiple cards.

Most card providers will issue payment reminders a few days before your due date. You may also be able to set up a direct debit so you do not forget to make payments. You could opt to pay the full balance, the minimum payment or some other amount by direct debit.

How do multiple credit cards affect your credit rating?

Your credit rating is based on data compiled by credit reference agencies and can help determine whether you are successful in applying for various types of credit including a personal loan, mortgage or credit card. The credit reference agencies look at various things including the amount of debt you currently have and the amount of credit you currently have available to you. Lenders may consider you an increased risk if you already have a lot of credit available. This means that even if you do not owe money on multiple credit cards, the credit limits available on them could affect your credit rating.

Remember that simply paying off the balance of a card will not remove it from your credit report. If you do not wish to use a card any more you should also make sure you close the account. You may also be able to request that your credit card provider lowers your credit limit.

What is a balance transfer?

Another reason to use multiple cards may be to transfer balances if a particular card offers a lower rate of interest. A balance transfer allows a customer to transfer the money they owe on one credit card onto another. Essentially, the credit card company on the receiving end of a balance transfer pays off the old credit card debt and transfers it to their own card. You then owe the money to the provider of the new credit card. Some credit cards offer low interest rates on balance transfers and introductory rates may be as low as 0%. Making a balance transfer can allow you to consolidate balances outstanding on other cards to one with a lower rate of interest. There may be a fee for making a balance transfer however and most introductory rates have a limited duration. When this time is up the interest payable on what remains of the balance will typically revert to the card's standard rate.

APR Guide

Admin — Thu, 04 Oct 2012 15:44:30 GMT

APR stands for Annual Percentage Rate. It is designed to help customers compare products effectively when they need to borrow money.

What is APR?

Banks, credit card companies and other lenders will quote an interest rate for any product they offer. This is important but an interest rate alone might not always tell the whole story. There may be additional costs involved with taking out a loan or setting out a credit card such as arrangement fees, administration costs, annual fees on a credit card and account closure costs. The exact nature and amounts of these additional costs can vary greatly depending on the type of loan product, the company offering the loan and the individual products themselves.

APR takes into account the interest rate charged when obtaining the loan. This means the APR may be different than the interest rate. A product with a low interest rate and high fees may cost more overall than a product with a higher interest rate but lower fees. APR is designed to help customers make the best comparison between the overall costs of two or more loans.

The Financial Services Authority (FSA) says:

“APR stands for the Annual Percentage Rate of charge. You can use it to compare different credit and loan offers. The APR takes into account not just the interest on the loan but also other charges you have to pay, for example, any arrangement fee. All lenders have to tell you what their APR is before you sign an agreement. It will vary from lender to lender.”

What products is APR applied to?

In the UK, APR is required by law to be provided for all credit offered by companies that are regulated by the CCA (Consumer Credit Act). Credit products can include mortgages, credit cards, credit for new cars and other purchases, payday loans and regular secured and unsecured loans. The APR should be displayed as prominently as any other rate.

Generally, APRs are designed to allow the customer to compare the costs of two or more similar products. The APRs for two different mortgage products, for example, should provide a clear comparison of the overall costs involved.

APR on credit cards

The stated APR on credit cards usually applies to the standard rate for purchases. This may be different to the same card's rates for balance transfers or cash advances, which are generally higher. The APR will take any compulsory fees such as an annual charge into account.

Some credit cards may have an introductory APR for new customers. This will typically revert to a higher standard APR after a given length of time. The standard APR must also be provided before a customer signs a credit card agreement.

APR on mortgages

The APR is based on the total lifetime of any loan. For mortgages, this is typically 25 years, although longer and shorter terms are also available. The APR is therefore calculated by considering the total interest cost over the 25 year term of the mortgage. All compulsory fees are also taken into account.

Very few people keep the same mortgage for its full term though. Some customers may sell up, move house or switch between fixed rate, tracker and variable mortgages with the same lender. Some may remortgage a property with a new lender. As a result, the APR may not give a truly accurate indication of costs if a single mortgage is not kept for its full term, but it can still provide a useful comparison between different products and deals.

APR on loans

Most loans tend to be paid back at regular intervals and amounts and the APR is, therefore, more straightforward.

The APR only takes compulsory fees into account. This means that voluntary payments such as Payment Protection Insurance (PPI) are not taken into account when it comes to working out APR.

Representative APR

Some people may not qualify for the advertised APR for a particular product. Lenders will take various factors into account, such as credit rating and income, before offering a particular rate. Rules on 'representative APR' do mean that the majority of applicants would qualify for the advertised rate however.

A guide to balance transfers

Admin — Thu, 04 Oct 2012 15:44:27 GMT

Balance transfers allow credit card users to transfer the money they own on one credit card to another. Often the new balance will enjoy a more attractive interest rate.

What is a balance transfer?

If you pay off your credit card balance in full and before the due date each month, you do not usually have to pay any interest on the purchases and payments you make with the card. If you do not pay off the money you owe, you will be charged interest on the balance.

A balance transfer is a way of moving the money you owe from one card to another. The card you are transferring the balance to may be an existing card or a brand new one. Essentially, the credit card company on the receiving end of a balance transfer pays off the old credit card debt and transfers it to their card.

What are balance transfer rates?

Balance transfer rates are the interest rates that will be applied to the balance once it has been transferred. Credit card companies will often offer attractive rates for balance transfers, especially for new customers. This rate could be as low as 0%, meaning no interest at all is paid on the balance.

Some balance transfer rates will apply for the life of the balance. Others will only apply for a set length of time and will then revert back to a higher rate. Promotional or introductory 0% rates will almost always have a time limit. This is often somewhere between 9 – 18 months but can vary. The provider of the new card is obliged to clearly tell you how long any promotional rates will last for.

Will there be a balance transfer fee?

There may be a balance transfer fee to be paid. This is expressed as a percentage of the balance to be transferred. It is usually around 3% but can vary depending on the card provider and product. If you transferred a balance of £1,000 with a balance transfer fee of 3%, it would cost you £30. The fee is usually added onto the balance rather than paid outright. This means that if you transferred the £1,000 to a new card, you would have a total balance on that card of £1,030.

How much can I transfer?

The amount you can transfer depends largely on the credit limit of your new card. The credit limit must be enough to cover both the full amount of the balance to be transferred plus any balance transfer fees to be applied. Some companies may also have a limit on the size of balance transfers allowed. This may be expressed as a percentage, such as 90% of the new card's credit limit.

Can I transfer a balance from another type of credit?

Balance transfers can usually only be made between two different credit cards. These can include store cards, which are a type of credit card restricted to use in one particular shop or retail group. Personal loans cannot typically be transferred but a few cards do allow you to make a balance transfer between a bank account and the card. This can allow you to pay off an expensive overdraft by transferring it to a card with a low balance transfer rate. The usual balance transfer fees apply and any promotional balance transfer rate may revert to a higher rate after a given length of time.

What are the terms and conditions?

The terms and conditions for a balance transfer may vary between providers and individual products but, as with any financial product or service, you should check them all carefully. If you are on a special rate, for example, and you miss a payment, the interest rate might revert to the credit card company's standard rate.

Credit rating guide

Admin — Fri, 27 Jul 2012 10:20:17 GMT

Your credit rating can help determine whether you are successful in applying for a loan, mortgage or credit card. It is based on data compiled by credit reference agencies.

What is a credit reference agency?

Credit reference agencies are companies who compile relevant information taken from financial institutions, credit providers and public records such as the electoral roll and county court judgements.

They use this information to produce credit reports which they subsequently sell to lenders and credit providers. The three main credit reference agencies in the UK are Experian, Equifax and Call Credit.

Who uses credit ratings?

Lenders use credit ratings to help decide whether to offer credit. They may also use the credit rating to help determine the rates and conditions of any credit offered. Lenders are under no obligation to offer credit and will use credit ratings to help determine the potential risk and profitability of an applicant.

Lenders will also take other sources of information into account before making a decision on credit. This includes the information on a credit application form, which will typically include personal details such as income, home address and family circumstances. Applications for a personal loan may also ask for the purpose of a particular loan.

Lenders may also take past dealings with the company into account. There are, however, data protection rules that may limit what information different parts of a company can share.

What information is on a credit report?

Credit reports contain details of your credit history. These include the date that any past or current credit accounts were opened, the credit limit or loan amount and details of any missed payments. Account details usually stay on your report for six years after an account is closed or a loan settled. If you clear a credit card balance but forget or otherwise fail to close the account, the details will remain on your report.

Agencies record credit searches every time a company or other organisation looks at your credit report. This means that every time you apply for credit, that application is recorded. Whether the application was successful is not recorded, although lenders may be able to work that out based on the credit accounts you currently hold.

Public records such as county court judgements, house repossessions and bankruptcies are also collected. These are usually kept for six years – in the case of a discharged bankruptcy, this should be wiped six years after the date you were declared bankrupt, not six years after you were discharged.

What information is not on a credit report?

Credit reports do not contain details of criminal convictions, medical history or personal information such as race and religion. Details of family members should not be included unless you have joint credit accounts.

Salary and earnings are not recorded. The name of your current account provider may be recorded but details of the account are not, unless there is relevant information such as use of an unauthorised overdraft. Savings accounts do not appear on credit reports as they are not a credit product.

There is no such thing as a 'credit blacklist', although having a poor credit rating can certainly affect your chances of getting credit and affect any terms that you might be offered.

What factors can damage my credit rating?

A number of factors can have a negative effect on your overall credit rating. These can include...

• Bad credit history

Missed or late payments can badly affect your credit rating. Defaults and County Court Judgements relating to debts can also have a major negative effect.

• Frequently changing address

Moving a lot can affect your credit rating. In general, credit reference agencies look at addresses lived in over the past three years. If there have been frequent changes or if you have lived at your current address for less than six months, it may have a negative effect. Moving house once, especially if you are a home-owner, is unlikely to have a major impact.

• Multiple credit applications

Making a lot of applications for credit in a short space of time can raise a red flag. Lenders may suspect that you have been turned down elsewhere or are desperate to obtain credit.

• Not being on the electoral register

The electoral register is one of the places all the credit reference agencies check. Even if you do not intend to vote, the fact that you are not registered can have an adverse effect.

How do I see my credit report?

The three major credit reference agencies offer various credit report services to individuals, but you have a right to see the 'statutory credit files' held on you by these agencies. These can be viewed online or paper copies can be ordered. There is a fee of £2 for each credit file.

If you think there are factual inaccuracies in the data, you can ask for the information to be removed or changed by contacting the agency directly. You can also add your own comments in the form of a 'notice of correction'.

Credit Card Hints & Tips

Admin — Thu, 12 Jul 2012 17:23:54 GMT

Credit cards offer a convenient and flexible way to pay for goods and services. They differ from debit cards, which draw from existing funds like a bank account. A credit card, as the name implies, draws upon credit provided by your card issuer. In effect, you are borrowing from the card issuer every time you use your card. For many cards this borrowing is free as long as you pay the bill in full each month by the date provided.

There are a number of simple hints and tips which you can follow to ensure that you can get the most from your card:

It is not a good idea to apply for too many cards. Constant switching/rejections can have negative impact on your overall credit rating.
Always try to make more than simply the minimum repayment when possible. Simply making minimum payments will only mean that it will cost ultimately cost you more and take longer to pay off overall.
It is a good idea to avoid using your credit to avoid cash if at all possible. Rates will often by very high and interest is likely to start accruing instantly.

Choosing a credit card

There are many different factors that may affect your decision when choosing a card. The interest rate and any annual charges applicable can be important, but the length of any interest free period for purchases may be even more important if you are planning on paying your balance in full each month.

Balance transfer rates, credit limits and incentive schemes may also provide reasons to choose one credit card over another. Every card has its own pros and cons and choosing the right one for you depends on your own personal circumstances.

Paying your bill

Your monthly bill will have a payment due date. If you pay the full balance by this date you will not usually be charged anything for using your credit card. Do not forget to allow time for your funds to clear depending on your method of payment. You will also have an option to pay a minimum amount. This will be a proportion of the total amount you owe and may vary from card to card.

If you do not pay the full amount you will be charged interest on whatever remains and if you do not pay the minimum amount, you may incur extra charges. Paying only the minimum amount each month can lead to you paying more in the long run.

You can pay your bill when it is issued or you may choose to set up an alternative method of payment such as a Direct Debit. You can set up your Direct Debit to pay the minimum amount, the full balance or a set amount each month. You can also make additional payments over the phone or online. When setting up a direct debit you should check when your bill or statement will be due each month. It usually makes sense to have your Direct Debit activate on this date, or at least between the statement and the payment due date.

Balance transfers

Card issuers will often offer attractive interest rates on balance transfers, particularly for new customers. This rate may even be 0% for a set period of time and it applies to balances transferred from an existing credit card to your new credit card.

A balance transfer may save you money in the long run, especially if you are planning to pay off a balance over a period of several months or longer. There is typically a fee for arranging a balance transfer though. This is usually a proportion of the amount transferred and this is added to your new balance. Transferring £1,000 with a 3% fee, for example, would cost you £30 and your new balance would be £1,030.

Credit card incentives

Many card issuers offer incentives for using their products. These can vary greatly between companies and individual cards. These may include:

Cashback – Some cards offer a cashback scheme in which you receive a percentage cash bonus for every pound you spend. If the card offered a 1% cashback, for example, you would receive £1 for every £100 you spend. Cashback offers often do not apply to balance transfers and cash advances.
Charity donations – For every pound you spend, some issuers will make a donation to a named charity.
Vouchers and reward schemes – For every pound you spend, you may earn points that can be redeemed for various rewards.
Insurance and extra coverage – As mentioned above, all credit cards offer certain consumer protection benefits. Some issuers may offer additional protection such as travel insurance or purchase protection insurance that can cover purchases made with the card against theft, loss and accidental damage for a specified period.

The value of any incentive scheme will vary depending on your personal circumstances. They can certainly provide a nice bonus but you should carefully weigh their benefits against other factors such as interest rates and charges before making a decision.

Credit Card Jargon Buster

Home James — Thu, 12 Jul 2012 17:23:51 GMT

Our jargon buster is designed to explain some of the terms associated with credit cards:

Annual fee

Some companies charge an annual fee for holding a credit card account. This fee will apply no matter how much or how little you use the card. Not all companies charge an annual fee and those who do so may not charge an annual fee on each individual credit card.

APR

APR stands for Annual Percentage Rate and represents the charge you will have to pay for credit taken over the course of a year. It is expressed as a percentage of the total amount borrowed. It takes into account not only the basic interest rate but any monthly or annual charges. In the UK, APR is used throughout the financial industry, allowing you to compare a range of different financial products and services.

Balance transfer

A balance transfer is when you transfer the money owed on a credit card, store card or loan to another credit card. Many issuers offer attractive balance transfer rates, especially to new customers. These will usually last for a set period of time, just like an introductory offer (see below). There is often a handling fee applied to a balance transfer. This is expressed as a percentage of the total amount transferred. If, for example, you transferred a balance of £1,000 with a 3.5% handling fee, your new balance would be £1,035.

Cash advance

Many credit cards allow you to obtain cash. This can often be done at a cash machine using your PIN, just as you would with your debit card. The APR on a cash advance may be higher than that charged when you make purchases with your card. Additionally, interest free periods may not apply to funds obtained through a cash advance. Interest will usually be charged from the date at which you withdrew the cash.

Cashback

Some cards offer a cashback scheme as an incentive. For every pound you spend, you will receive a proportion of that money back. If, for example, you spent £100 on a card with a 1% cashback, you would receive £1 back.

Contactless technology

Some credit cards now support contactless technology. This allows you to make small purchases (typically £15 or less) by simply holding your card near a contactless reader. The card has to be held for a short time in close proximity to the reader, so you won't trigger a reading simply by walking past.

Credit card

A credit card is a card that allows you to access credit to purchase goods/services or to withdraw cash. A credit card differs from a debit card, which draws from existing funds in your bank account or a prepaid card, which must be 'loaded' with funds before you use it. Whenever you use a credit card you are in essence borrowing money from the card issuer and this money has to be paid back.

Credit limit

Your credit limit is the maximum amount you can borrow on your card at any one time, whether through purchases, cash advances or balance transfers. If you attempt to go over your credit limit, your card may be declined and you may also have to pay charges. Your credit limit will be set when you apply for your card, depending on your personal circumstances and the type of card you're applying for. The credit limit may be revised at a later date.

Foreign Exchange fees

When using a credit card to pay for goods or services abroad, you are likely to incur an administration charge as a result. Unfortunately, this is an unavoidable consequence of using your card while overseas but it is worth noting that these charges will vary from one credit card company to another.

Interest free period

Most credit cards allow an interest free period on purchases. This is a set period of time following the date on which you receive your monthly statement. As long as you pay your balance in full before the end of this period, you will not be charged interest on your purchases. Essentially, this allows you to use your credit card for free if you pay the full balance each month and there are no annual fees. The interest free period does not usually apply to cash advances, balance transfers (which may have their own special rates) or cheques drawn against your credit card account.

Introductory rate

Many credit card companies offer an introductory rate to new customers. This may be as low as 0% and will apply for a set period of time. After this period ends, your outstanding balance will revert to the issuer's normal rates.

Minimum payment

The minimum payment is the lowest amount you must pay off your credit card balance that month. It is usually a percentage of the total amount owed. You can pay more than the minimum payment but if you fail to pay the minimum payment, you may be charged extra fees. Repeatedly missing your minimum payment can damage your credit rating and may eventually result in legal action.

PIN

PIN stands for Personal Identification Number and is the four-figure digit you use to make payments with your card. It is more secure than providing a signature, which can be forged.