What is the Difference Between Store Cards and Credit Cards?

What is the Difference Between Store Cards and Credit Cards?

There can be a bit of confusion when it comes to store cards and credit cards and which might be the best to take out and to use. It is therefore good to have a clear understanding of what the differences are and then you will be able to choose carefully when you are thinking about getting one.

Cost

The cost of all cards will vary but it is generally the case that store cards will be more expensive than credit cards. This will only be an issue if you get charged interest though. Both types of card will normally be free if you repay them in full before the date stated on the statement. You can even set up an automatic payment so that the card gets repaid in full when it needs to be. Some cards will an annual fee or other charges though and so will need to check for this to see whether you will be expected to pay anything additionally. If you do intend to not repay the cards in full then you should be comparing the interest rates on the cards to see which might be cheaper for you.

Rewards

Store cards tend to offer some sort of incentive or reward to the card holders. This could be money off or some sort of loyalty points or it could be preview sale events and things like this. What they offer will very much depend on the store itself. You will therefore need to check. Make sure that you check what the long term offers will be as well as the initial ones. This is because they will tend to have really attractive initial offers to try to get you really interested and then will have others possibly and you will need to see what they are. You need to make sure that it is worth your while. With a credit card you may be able to get a rewards card which will give you some offers too. You might get some cashback on purchases; air miles or other sorts of rewards and it is good to take a look at these to see whether it is worth going for a card like this. They will tend to be more expensive though and so probably only recommended for those people that intend on repaying the full balance each month as they will generally pay no fees anyway.

Flexibility

It is worth bearing in mind that when you have a store card you will normally only be able to use it in branches of that particular store and maybe any other stores owned by the same company. Whereas with a credit card you will be able to use it in a lot of stores. Not every store will accept a credit card and some brands of credit card are more widely accepted than others, but you will be able to use it in more places than a store card.

As you can see from the differences between the cars, there could be good reasons for getting either of the types of cards. It is therefore worth thinking about what might work the best for you or you may even decide that you should get both. Although this could be advantageous, it can be risky having access to so much credit. If you are the type of person that might see it as a good reason to go out and spend a lot of money, then this could be a problem, so make sure that you think things through first and decide whether it will work for you.

Should I Have Several Credit Cards?

Should I Have Several Credit Cards?

There are some people that have several credit cards, some that have just one and others that have none at all. If you are considering whether you should be getting another credit card it is a good idea to think about the pros and cons of doing so and then you can make the decision based on this. Below are a few ideas to start you off.

Advantages of Having Several Credit Cards

  • It can be really handy have several cards as it means that you will have access to more money. This means that you will be able to buy more things before the cards get maxed out. So, if you need to buy lots of things or expensive things, then having several cards will allow you to do that.
  • If a shop does not take one of your cards, then you will have another one that you can try instead. This can be handy if perhaps your cards are different – perhaps one Visa and one American Express. Not all shops take American Express so you can use your Visa when you are in those shops.
  • If you lose one of your cards, then you will have the other one that you can use instead of it.

Disadvantages of Having Several Credit Cards

  • If you have access to lots of money, then you may spend more than you can afford to repay because it is more difficult to keep track of your spending.
  • You might find that you will end up spending far more money than normal because you have the opportunity to do this with the cards. Some people see their credit limit as their money that they can spend. So, they use it to treat themselves to all sorts of things. Then they cannot afford to repay it when the statement comes and end up having to pay interest on it. This will mean that they will have to pay a lot of money for the privilege of being able to spend the money and that can be expensive for them.
  • Having double the cards means double the chance of fraud on your credit card.

These are just a few of the advantages and disadvantages. It is important to think about how you will keep track of your spending with two credit cards because you will need to make sure that you keep your spending under control. It is always best to repay the whole of your credit card before you get any interest added to the account and in order to be able to do this you will need to make sure that you do not spend more than you can afford. Therefore, you will need to keep a note by writing down what you are spending or by checking the balance online, which could be more of a hassle if you are doing it for two credit cards, rather than one. It could be easier to see whether you can increase the credit limit on the one card that you have than take out a second one. It is also worth thinking about whether you will find that you do overspend once you have the temptation of this extra money available for you to use. This could end up being really expensive for you and you may then struggle to get back in control of your money as a result. It can be fun spending the money, but the fun soon fades when you have to pay the interest on it and find the money to repay it all.

How to Ensure You Repay Payday Loans on Time

How to Ensure You Repay Payday Loans on Time

Whenever you take out any loan, it is important to repay it on time. This is because you will be charged extra fees if you do not and no one wants to have to pay more than necessary. With a payday loan, especially one with no credit check, you will usually need to repay everything that you have borrowed plus any interest and fees all in one go and therefore you will possibly find it harder to repay than loans where the repayments are spread over a series of months. There are things that you can do though, which should help you to be able to have a much better chance of being able to repay the loan and it is worth thinking them through and making sure that you do as many as possible.

Check What Your Need to Repay and When

It is really important to know exactly how much you will need to repay and when you will need to pay it. Then you can prepare yourself for this. It is most likely that you will need to repay everything that you have borrowed plus the fees and interest on the next day that you get paid. Make sure that you get the figure from the lender and double check the date so you know exactly what you are aiming for.

Spend as Little as Possible

It is a good idea to start spending as little as possible as soon as you take out the loan. Only buy things that have to and compare the prices on the things that you are buying to make sure that you are not paying more than necessary. Check everything that you are buying from groceries to insurance, to make sure that you are not paying too much. Even if switching utility or insurance suppliers will not have an immediate impact it can be worth doing anyway as it will help you because having a loan like this can leave you short of money for a few months or even a bit longer. Ask yourself whether you really need everything that you buy and see whether you can wait or go without in order to save that money towards repaying the loan instead.

Look for Earning Opportunities

It is also a good idea to look out for as many ways as possible to earn a bit more money. This could include all sorts of things. You might be able to take on more work in your job and boost your pay, or take on a second job to get a bit extra. Perhaps some temp or freelance work might add a bit of income or you could see if there are any ways to earn online. Selling things that you own and no longer need can help as well as selling that you make as part of a hobby you might have. There are lots of available options and it is just a case of finding one that will suit you and fit in with the time that you have available. It is worth trying everything you can even if it only raises a little bit of money because you will find that every little bit of money that you can get will make it more likely that you will be able to repay the loan. Even if you feel confident that you will be able to do this it is worth remembering that you will also have to manage to pay all of your other bills and expenses for the month once the loan is repaid and so you may be glad of some extra help to do this.

Are Payday Loans Worth Getting?

Are Payday Loans Worth Getting?

We hear a lot of things about different types of loans from various places and it can lead us to make generalised conclusions about them. However, it is a good idea to make sure that we do not dismiss a certain type of loan just because we have heard different things about it but that we find out information about it for ourselves which will help us to draw our own conclusions.

Find out the Facts

It is good to find out the facts about payday loans first. Read about them on a trusted website with factual information and learn more about them. You will be best to use websites that have no bias, such as those which are written for charities or for the government. This will then enable you to find out the facts without personal opinions getting in the way. You may otherwise find that there will either be people trying to sell the loans and being overly positive or people reviewing them that have had bad experiences putting you off and you want to make sure that it is more balanced. You need to know how the loans generally work, who should use them and when and who offers them. This should help you to get a good understanding of them. Then it is wise to find out about how much they usually cost and how you repay them so that you can see whether they will offer good value for money and whether you will be able to repay them easily.

Look at Lenders Websites

It is also a good idea to have a look at the websites of some lenders of these types of loans. They will of course be biased as they will want you to apply for the loans, but I can give you an opportunity to find out more about specific payday loans and the differences between them. You will be able to look at the terms of the loans, the costs and things like that in order to give you a better idea about how they work and whether they will suit your needs. You might also be able to find out information about the lender and the website should give you a feel for them and what they are like.

Consider Own Situation

It is a good idea to think about the types of people that these loans will suit. Are they perhaps more suitable for certain situations than others? How does the cost compare with other types of loans? How capable do you think that you would be of repaying? Then you can more easily decide whether they will be a good solution for you personally.

Think about the situation you are in and what all of your options are. If you are convinced that borrowing is your only option, then you need to consider all of the options that are available to you. The only way to make an informed choice is to know about all of the options and how they work and then you will be able to choose the one that will suit you. It can be worth thinking about what is important to you in a loan and then you will be able to check whether the different options that you have match up with these things. For example, it is a good idea to consider whether the lender is important or whether the cost is more important or things like this. Then you will be able to find the one that is best for you and your needs. Taking time to do this will lead to a much better borrowing experience.

Are Tracker Mortgages Worthwhile?

Are Tracker Mortgages Worthwhile?

There are quite a few different types of mortgages and it is a good idea to have a good understanding of them so that you can be sure that you will be able to pick the right one when you either buy a home for the first time or remortgage. A tacker mortgage is perhaps a type that some people may not have heard of and it is a good idea to have an understanding of what it is and then you will be able to know whether it is something that you want to consider. We all have different mortgage needs and so it is not easy to pick one mortgage as the best for everyone, we have to think about what we want and what fits best with that.

What is a Tracker?

A tracker is a specific type of variable rate mortgage. The rate of interest will have a fixed art, which will always remain the same and cover the costs of the lender and it will have a variable part which will be equal to the base rate. The base rate is the interest rate that is set by the Bank of England and it is reviewed every month, although it does not tend to change that often, it potentially can. It usually gets put up or down to try to have an impact on inflation. The government at the moment has a target of 2% inflation a year and the Bank of England uses various measures including interest rates to try to target that rate. Inflation is the measure of prices, so the government want them to rise but not too quickly so if they are rising too fast, interest rates will rise to try to make borrowing more expensive and saving more attractive and therefore spending will be reduced. However, if inflation is low, they will try to lower the interest rates to make borrowing cheaper and saving not so beneficial so people are more likely to spend.

When is it Useful?

If the base rates falls, then the interest rate on the tracker will have to fall and if they go up it will have to go up. With a fixed rate of interest it will not change at all and with other variable rates, they will tend to rise of the base rate rises but they may fall so quickly when the base rate goes down and they can be changed at any time so they may go up in between base rate increases. This means that a tracker mortgage rate is especially useful when you are predicting that the interest rates will fall as you will benefit from that fall in rates.

Who is it for?

It can be a risk and so if you cannot afford a higher payment on the mortgage, then it can be safer to use a fixed rate because you will know that it will not go up for a while. Fixed rates do not stay fixed forever though, so you need to be aware of when the fixed rate period will end and what you plan to do afterwards. A fixed rate could also end up being more expensive.  If you can afford to pay a bit more each month if necessary, then it could be worth going for a tracker rate as you will be able to see a reduction in interest rates if the base rate is lowered and you may not do so if you have a normal variable rate. Of course, if the base rate goes up, then you will start paying more immediately, but this is likely with any variable rate mortgage.