Credit cards are a convenient way of handling cash flow and there's the added bonus that you can get up to 59 days of borrowing interest-free. There are other benefits too.

When you buy for between £100 and £30,000 using credit cards you have valuable rights under Section 75 of the Consumer Credit Act. It means that when you buy something using your credit card, your contract is with both the trader and the card issuer and that means that they have equal liability for anything that goes wrong so you can take action against either of them to get compensation. The legislation is restricted to goods sold for more than £100 and less than £30,000 but it's pretty useful in situations where, for example, the goods are damaged or don't turn up, or the company goes bust.

Section 75 covers everyone using a credit card but you won't be surprised to learn that card issuers don't fall over themselves to let you know about this extra protection. In fact, you might even have to fight quite hard to enforce your rights with some companies. But you are in the right and you should stick to your guns if you know you're in the right.

Sure they are convenient. Open your wallet, take out a bunch of credit cards, choose one, sign the slip, pick up the parcel and off you go. Nothing easier. You don’t even have to wait for the change. But this little bit of indulgence costs you and when your account arrives and you are staggered at the costs, you have forgotten that nice warm feeling of using your credit cards and all that’s left is the pain of paying. By then those nice blue jeans you bought with your credit cards are already looking crumpled and ragged.

It’s not easy to avoid the costs associated with credit cards but you can reduce them. First you must decide what the cards are going to be used for. Are you planning on splurging with your credit cards or are you just using it for little essentials that can't wait until payday? Do you want to transfer the balance from another card? Maybe you only want it as insurance in case of emergency expenses. The more uses you attach to the credit cards the higher the costs will be. So start by eliminating all the services you don’t need. You have already made inroads into cutting costs.

For years my wife and I have both had our own credit cards. I carry a Visa and an American Express and Janet carries a Diners and a Mastercard. We have always managed fine and there have never been any problems. We were out at friends for coffee the other evening and we listened to a conversation about all the different kinds of credit cards that are available. I made a list of these credit cards. Here it is:
o • Low Interest Credit Cards
o • Instant Approval Cards
o • Bad Credit Credit Cards
o • Rewards Credit Cards
o • Cash Back Credit Cards
o • Student Credit Cards
o • Business Credit Cards
o • Balance Transfer Cards
o • Hotel/Airline Credit Cards
o • Prepaid Credit Cards

So of course we are now thinking that we can improve our situation and save money at the same time by switching to different cards. The big question is where to begin and how to choose our new credit cards. I’ve been looking at credit cards on the internet for 2 days and at this point in time I am no wiser. But I’m learning a lot about the subject.

Reward credit cards are credit cards that offer extra bonuses resides low interest rates. In essence the more use you give the credit card, the more rewards you will receive.

When you decide to get rewards credit cards, you need to decide on whether you want a card that offers you points you can redeem for airline travel, or a cash back card that will give you a percentage back from your purchases. That percentage will vary between 1 and 3%.

If you decide to get reward cards that offer points, you need to view the cards limitations. Sometimes those points that convert to airline miles are miles that cannot be used whenever you want. There are only certain times you can fly. Points can also be used for certain shows, and other things which are advertised by the credit card company.

Another type of reward credit cards program is that of cash rewards.
Credit card rewards are bonuses that you receive as you use your card. In general, the more you use the card the more points or rewards you get from the company. Many people prefer these types of reward credit cards, because they are easier to manage and it is easier to understand the mathematics involved in how the cash back program works.
Here you don’t have to worry about how many points you have accrued, or how to go about redeeming them. In the cash back programs the money is added into your account on a monthly basis, or once you have surpassed a certain purchasing limit.

A great suggestion if you are looking for a point system rewards program is to check with the airline that you fly on frequently. They may have an affiliated credit card which you can apply for.

Remember that some point systems may have a redemption fee tied into their point system. It is extremely important to note that redemption points, or cash back awards are only really effective, and valued if you are a person that pays off their credit card balance every month. If you carry over a balance then the interest rate will eat up your rewards, no matter which plan you choose.

Be sure to check to see if the credit card has a reward cap in place. Some credit card companies will limit the amount you can benefit in points or air miles. Try to find a company that has no limits or caps, and you will reap more rewards.

Credit cards can be an asset. At least they are convenient when you urgently need something and just don’t have the cash at that moment to pay for it. That is the way things are supposed to work, but that does not necessarily mean that they do work that way.
Making a credit card application is an important decision, because you need to seriously think about how you are going to use that credit card, and whether or not you can use it sparingly and adequately. There are many advantages to owning a credit card, but there are also many disadvantages to owning a credit card.
The Advantages of Performing Those Credit Card Applications
• Credit cards are much safer to have on hand, than cash. They are also a convenient way of getting the cash you need when you need it.
• They give you a sense of added security. You know you will never be in a bind , so long as you have a credit card on hand. You can also protect yourself from an unscrupulous seller by withholding payment.
• Most credit cards give you 25 days to pay your balance without charging you interest. So if used appropriately it is like a short term, interest free loan.
• Credit cards can be a godsend when you have them available for a travel emergency, a transportation emergency, or a medical emergency

The Disadvantages of of applying for a new credit card
There are certain disadvantages to performing that credit card application. The whole process seems quite simple, but unless you are extremely careful, you can get yourself into some serious problems very quickly.
• Don’t apply for a credit card with a very high credit limit. It will be harder to pay the balance off, and you are more likely to use it impulsively.
• Having too many credit cards that you cant pay off in full will hurt your credit score
• Be careful of high interest rates. When you are filling out those credit card applications, be sure to read all the fine print. You may find that fees and interest rates are much more than you thought.

When filling out a credit card application, read the whole application; make sure there are no hidden fees or interest rates. Be sure that you are applying for a card that you can pay off monthly, that way you will not get in to too much debt too quickly.

Have you decided that you want to get a credit card application and see if you can get a credit card? Maybe you just need to get another credit card? Owning a credit card can be beneficial, but you do need to be careful. Why? As most people that have had credit card problems will tell you: if you are not careful with their use, you can get yourself into some real financial problems. But living in this world without a credit card is almost impossible.
In order to get a credit card you will have to fill out a credit card application and the credit card company will look at your credit history.

Remember that if you have bad credit history then you will have a harder time getting a credit card, and you may have to get a card with higher interest than normal, or even a secured credit card.

If you have good credit or no credit then you will probably have an easier time of it.
When you are not sure about your credit history, then you can get a copy of your credit history from the credit bureau online.
If you don’t have credit, and you cant get a credit card then you may want to apply for a department store card, so that you can establish some credit.

When you have gotten your credit history and find that you have established some credit, you need to think about the credit limit you want your card to have. Most financial advisor's will recommend that you not get a credit card with too high a limit. They are just too tempting to use too often.

Once you have thought about that, then you are ready to find the right credit card application. When you pick up a credit card application make sure you read through the whole thing. Understand what its annual renewal fees are. Make sure you know how much interest the card charges. Don’t get caught by surprise later on.

It usually takes a credit card company a week or two to review your financial information and decide on whether they want to accept your application or not.

If your application is refused then you should wait a few months and apply with another company. In that time try to get a gas card, or some other type of loan card, so that you can begin to establish credit.

Do you know everything there is to know about business credit cards? They are very similar to personal credit cards, but are used in the running of your business. When you are in business for yourself, it is important to begin separating your personal finances from your business finances as soon as you can.
Another reason why you want to start to use a business credit card, is because you want to establish credit for your business. In fact, it is imperative that you begin to establish credit. A good business credit history will allow you to be better prepared when you go out and apply for that needed business loan.
When you first apply for a business credit card, you will be accepted based on your personal credit history. You want to eventually get to were the business has its own credit history and can continue to build it up from there.
Focus on Special Options you Might Need for Your Business.
Credit card competition is stiff. More and more credit card companies are appearing on the horizon, and credit cards have to compete with each other for customer attention. Because of this, there are some great credit card offers on the market today.
Have that competition and those offers work for you and not against you. You can do that by choosing a reward system credit card. The type of rewards you choose depends on the type of card you need. If you need a small 30 day line of credit, then you probably want to look for a 0% APR rate. In other words, a credit company that gives you a thirty day interest free loan could be a very good deal for a business.
If your business requires that you travel a lot, then you will probably be interested in a point system reward plan. That means that the more you use your credit card, the more points you accumulate, and those points turn into flight miles that you can use on your trips.
If you purchase a lot of merchandise from a certain merchant you may need a cash back card, and hopefully one that gives you more of a percentage when you buy from that certain merchant.
The basic idea is that when you choose a business credit card, that you think carefully about what you need and then choose accordingly. In the beginning the credit company will base their approval on your credit rating. After the business uses the credit card and pays it off on time, then the business will start to establish its own credit, and that credit limit will increase over time.

If you are thinking about getting a new credit card, then you must be paying attention to the credit card advertising. You probably have heard of the cash back credit cards that are available.

Have you seen the cash back credit card commercial? You know the one where the couple is taking of f on this great trip, or on this wild shopping spree. It sure looks enticing doesn’t it? The offer of making money when you spend money seems very enticing, and in many cases a cash back credit card can be a good thing.

When looking at cash back credit cards be sure to note the following:

Some purchases on the card do not count for the cash back offer. Transfer of balances, and cash withdrawals do not earn cash back from many companies. The only way to tell what is included and what isn’t, is by asking.

Find out how much you are really receiving in cash back. Some cash back credit card companies offer you more of a percentage than others. Compare different credit cards, but also compare different interest rates of the different companies.

Some cash back credit companies offer more cash back if you purchase from a certain retailer. Find out if this is true with the company you are dealing with.

Find out how often you get the rewards. Some companies only give you the rewards once a month. Others give it to you as soon as a certain amount has been accrued.

Again I cannot reiterate it enough, find out what the credit card companies fees are. Don’t choose a company only because it is offering cash back. If the company is charging high fees, you may be paying more, than what you are getting.

Remember that cash back programs may be good, but they are also a marketing idea that the credit company is doing to try to get new customers. So you need to make sure that it is actually a good promotion that is benefiting you.

Cash back programs are usually offered to potential customers that have a good credit history, and are usually offered to people that already have one or more types of credit cards. So if you are just establishing credit, it may be in your best interest to find a regular type of credit card.

As much as financial analysts tout the benefits of using cash. In this modern day and age it is just not possible to always use cash. Besides which if you ever have the intention of buying your own home, you will need good credit, and good credit only comes through the use of credit cards.
So, now that we have established the importance of credit cards lets review the points that should be taken into consideration when you apply for credit card.

You need to know what you need in a credit card, and more importantly what you can afford. You want to get a credit card that you can pay off safely every month, so it would probably not be a good idea to get a high limit credit card. The higher the limit you have, the higher the temptation you have.

Now that you sort of have an idea of what you are looking for, then you are ready to go out looking for credit card companies. Make sure you choose a reliable credit company to apply to.

When you are applying for a credit card, whether it is by mail or by internet, pay attention to what the application is telling you.
Make sure you know what the APR rate is, and what the one time annual fee is, and what the renewal fees are. Most credit card companies try to hide this information as hard as possible. That is why they only list it in the fine print section of their application.

Go over the credit card companies’ policy regarding interest rate. Some cards even come with a 0% interest rate. Find out if the card has a fixed or a variable interest rate. A fixed rate is the one you want because it never changes, at least not throughout the year. Variable interest rates on the other hand change to some degree.

Review your annual finance charges. Most credit cards charge some kind of annual fee which can range any where from $25 to up to $75. You may have other costs too, depending on what you do. For instance some credit cards will charge a fee for using cash withdrawal options, and others will charge you a fee for transferring balances.
Before you apply for that credit card find out what the grace period of the credit card is. Find out if they give you a few days after your pay day limit is up.