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If you are in need of borrowing money over a short time period then credit cards are one of the easiest ways to secure a loan. They can be used in either the UK or abroad to make purchases and cash withdrawals.

Credit Cards:

Being such a highly differentiated product, the credit card can be a confusing financial tool. They can get lost behind extensive branding or gimmicks but they do tend to fall into either of these two categories.

1. The Gold and Platinum credit card. They are customized for the older applicants that have      a strong credit history and salaries that are above-average. With higher credit limits and      various freebies like insurance cover it comes with some useful benefits. These cards are      subject to certain terms and conditions regarding income and minimum age requirements.

2. The Standard credit card. These are more restrictive in terms of benefits and credit but as      they are a less exclusive alternative to the others the applicant is more likely to gain      approval. This is subject to the same terms and conditions spoke of previously.

The determining factors you must consider when choosing a credit card for yourself are the interest-free period, interest rate (APR), charges (e.g. annual fee and cash withdrawal fees), ‘free’ services and loyalty reward schemes.

It is advisable to seek out reward cards if you are one of those consumers who usually settle their bills within the interest-free period. By gaining approval you will benefit from various rewards like air miles, cash back and insurance cover.

However, if you are known to carry debt over from one month to another then you should consider choosing a credit card with the lowest interest rates and, if possible, temporary interest free periods on all purchases and balance transfers.

Alternatively, if you intend to spend lots of money on various shopping sprees then we advise you choose a credit card that offers 0% APR on all balance transfers. By the time the introduction period has finished you could transfer the outstanding balance to another credit card that also charges 0% APR on all transfers and incurring no interest payments on your debts.

The credit card issuer will usually stipulate a minimum monthly payment of either £5 or 5% of the outstanding balance on your account. Although, the opportunity of clearing the entire balance if you have sufficient funds is an option you may choose to take.

For a more extensive array of loan offers alongside mortgage offers, take a look at Loans UK for all your loan needs.