One of the most popular methods of payment, credit cards, they have gained immense popularity and importance for the benefits they carry.
- 1 What are Credit Cards?
- 2 Advantages of Credit Cards
- 3 Disadvantages of Credit Cards
- 4 What are the Fees Associated with a Credit Card?
- 5 Credit Card Options
- 6 What is a Credit Card Eligibility Checker?
- 7 The Best Credit Card Eligibility Checker
What are Credit Cards?
A credit card is a unique type of card issued by financial institutions, that lets you borrow money from a pre-approved sum, to pay for goods and services but with a condition, that the borrowed sum should be paid back with interest and within a certain period of time.
Sometimes a credit company may also grant a line of credit to cardholders which enables them to borrow money in the form of cash. Most of the businesses let their customers purchase the product they want, with credit cards. This is exactly why it is also one of the most popular methods of payment. Not everyone can own a credit card, there are certain criteria that has to be met by the individuals if they want to own a credit card. To check your eligibility, you can use the credit card eligibility checker which available online.
Advantages of Credit Cards
Owning a credit card has a wide variety of advantages
- As credit cards more accepted than cheques and is a popular method of payment, it is convenient to carry a credit card.
- Responsible usage of credit cards can build good credit scores and that will be helpful later on.
- It gives you the ability to make a large purchase now and pay it off in installments.
- As a marketing strategy to gain more customers, credit card companies and financial institutions give credit card rewards in the form of airline miles, cash-back and many more.
Disadvantages of Credit Cards
As the saying goes “there are two sides to every coin”, even credit cards have their own set of disadvantages they carry along with them
- The ease of spending money through credit cards may lead you to over-spend
- Over-spending may put you in debt
- Sometimes, the money when paying back with interest can be higher than the borrowed sum
- Untimely or missing payments may drop your credit scores in a bad way
What are the Fees Associated with a Credit Card?
An interest charge is an amount that will be charged on anything you didn’t pay off the month before. It’s charged on a daily basis, which means if you have a balance of £100 on a card with 25% APR, it would earn an interest of £25 per year.
When the customer withdraws money from an ATM using his/her credit card, the credit card company will charge interest on the borrowed sum.
Late Payment Charges
If you do not pay back the borrowed sum within the given time period mentioned by the bank, then you are liable to be charged with a late payment fee.
Charges for Exceeding
If you end up borrowing more money and eventually exceed the pre-determined limit, then the credit card company will charge you with a fee.
Credit Card Options
There are many credit card options that you can choose from but choosing the best one for you can an incredibly tough job. Though when you use a credit card eligibility checker, it will filter the availability of cards for you based on the data you’ve provided.
Here are some of the best credit cards to choose from
- M&S Shopping Credit Card
- American Express Platinum Cashback Everyday Credit Card
- Sainsbury Bank Credit Card
- The Natwest Credit Card
- John Lewis Partnership Credit Card
- Tesco Balance Transfer Credit Card
What is a Credit Card Eligibility Checker?
A credit card eligibility checker is an online tool that helps you find out if you’re eligible for a credit card or not. It basically runs a soft credit check on your credit file to estimate if you’re eligible for a credit card or not and one good thing about soft credit checks is that it does not reflect on your credit file.
Anyone above the age of 18 and with a UK address can use the credit card eligibility checker but for better results, you’ll need at least 3 years of address proof.
As mentioned before, one of the best things is that the background check leaves no marks.
For security purposes, the credit card eligibility tracker uses your name, age, and address to verify your identity.
Also, it is important to remember that, using a credit card eligibility checker does not mean you will get a card, the final decisions are up to the credit card companies, but the credit card eligibility checker will give you a fair idea of which credit card company might offer you a credit card.
The Best Credit Card Eligibility Checker
Credit Card Eligibility Checker plays an important role in helping people calculate if they’re eligible for a credit card or not. It is of great help for people who are purchasing a credit card for the first time. Because of the ever-growing demand for credit cards, because of which many financial institutions have launched credit card eligibility checkers on their websites, to help people determine if they worthy of a credit card or not.
Here is a small list of the best credit card eligibility checker
- Halifax UK
- Money Saving Expert (MSE)
- Capital One