Facts about credit cards in the UK

The first credit card was launched in the U.K on the 29/06/2006 by Barclaycard. It was not until 1971 that the Access card was launched.   Latest Statistics at December 2008 Credit outstanding was £65.5 billion. 72.5% of credit card balances attracted interest At the end of december there were 66,692,000 cards in issue of which 27,063,000 were visa cards and 39,630,000 were mastercards.

The bad

According to moneyfacts.co.uk the average interest rate on credit cards is 17.7% and considering that the average debt per credit card holder is estimated at £1856 that is a lot of interest being charged.

The good

There are some very good advantages to credit cards particularly if you pay the outstanding balance off the card at the end of each month. Some of the advantages of credit cards are 1/ Many credit cards give you protection on your purchases as under section 75 of the consumer credit act the company is jointly liable along with the merchant if an item is faulty or fails to get delivered. (this does not apply to debit cards or charge cards)  2/ For those who pay off their cedit card bills in full each month they get the advantage of interest free borrowing on their purchases until the bill arrives and the conveinience of not having to carry cash around. 3/ Credit cards can also be a good way to establish and keep a good credit rating which is a valuable asset to have. 4/ Because of point 1 they are a better option when buying goods over the internet.

The very good

So are you one of the 73% of the UK population with an outstanding balance on their credit card?   If so consider moving the balance to one of the cards that offers a 0% balance transfer. An example of the savings that can be made by doing this would be for someone who has a £3000 balance, is paying £150 per month (the minimum) and takes out a 12 months 0%  balance card. The potential savings in this case would be £249 a figure which is certainly worth pursuing. With all these things though the best deals go to those who have a relatively good credit record and it is certainly worth checking you file to make sure there are no hidden nasties on it before applying for a new credit card. Fortunately you can get to see what is on your credit file for free here .   Having checked to see that your credit file is ok take a look at the link below to see the credit card options available to you and just how much you might be able to save.  Credit Card Suppliers

Further information is available on   Vanquis-they provide credit cards for those with a poor or a non existant credit rating.   MBNA   American Express   Halifax all in one credit card   Tuxedo prepaid credit card   Prepaid credit and debit cards   HSBC credit card-existing hsbc customers only   Compare Best credit cards   Virgin credit card 0% on balance transfers for 16 months