In this age of instant gratification, credit cards occupy their own unique status. Actually, so important has plastic money become, that money transactions are perceived as almost impossible without this new age tool. One of the most inviting features of a credit card is the ease with which it can be used and the convenience it lends to your monetary transactions.

Instead of carrying that purse full of cash everywhere, you can now finance all your shopping with just a plastic card. Just swipe the card and take home all the goodies. There is a huge array of credit cards available today ranging from affinity and business to store and bank credit cards.

Just about every bank in the UK offers its consumers credit cards. In some cases they also give you various benefits like 0% p.a. interest on balance transfers for the introductory period. There are various banks that also offer great rewards schemes like free air miles on their credit cards. If you are worried about identity thefts, don't be. The new chip and pin technology offers absolute security to your personal information. Under this system your card will contain a computer chip that may be used for identification. Only a PIN and not a signature will authorise a transaction with this card.

With a whole gamut of banks vying for your business with lucrative offers, it can become quite a daunting task to choose the one credit card that you will ultimately use. Before you actually sign up with a bank for a credit card, just run a check on the following points:

What is the time period for which you are offered interest free credit?

What is your card's credit limit?

Does your card levy an annual fee?

What are the penalty charges if you miss a payment?

Is the interest charged from the statement date or the date of purchase?

Are there any reward points attached to your credit cards?

It is only natural for you to go in for a credit card that is issued by the bank that you trust. However, you must not overlook the fact that if this bank also has your mortgage and other finances, then you may end up facing far reaching consequences if you default on your credit card payments.

While credit cards are a great money management tool that have made borrowing so much more convenient, yet one cannot brush aside the fact that they also bring with them a huge risk of creating debts. As is the case with just about every form of credit, one must always observe caution when using credit cards for spending.

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