Posts Tagged ‘credit cards accepted at sams club’

Credit Card Companies See an Uptick in Demand

NEW YORK, NY–(Marketwire -03/16/12)- Credit card companies have posted impressive results of late. With the U.S. economy once again showing signs of growth, studies show that consumers are charging more on their credit cards over the last year. Five Star Equities examines the outlook for companies in the credit card industry and provides equity research on Visa, Inc. (NYSE:V – News) and American Express Company (NYSE: AXP – News). Access to the full company reports can be found at:

www.fivestarequities.com/V
www.fivestarequities.com/AXP

Five Star Equities releases regular market updates on the credit card industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.fivestarequities.com and get exclusive access to our numerous stock reports and industry newsletters.

Greg McBride, senior financial analyst at Bankrate.com, explains that card issuers were aggressive in writing off bad debt in 2009 and 2012. “That’s why over the last year or so they’ve been out actively seeking to grow their business,” McBride argues.

One way credit card companies are expanding their reach is with mobile payment and online ventures. Visa Inc., the largest credit card processor, is preparing to roll out its own “digital wallet” which will let customers pay for goods online using a user name and password instead of typing in their credit card numbers for each purchase. The service, called V.me, could also be used in the future to make in-store payments, Visa said.

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Credit cards of the future: 4 exciting trends

Change doesn’t come quickly to the credit card business. It took almost two decades for engineers to agree on the standard for the magnetic stripe. Another 25 years passed before European banks issued cards with embedded microchips, a technology that never took off in the United States.

Even today’s contactless credit cards handle fewer than 1 in 20 transactions. Yet, banks, retailers and consumers demand more secure alternatives to today’s plastic payment tools. By 2020, you might not recognize your own credit card, if your issuer picks up on one of these four payment technology trends.

Credit cards that don’t look like credit cards

Wallet, watch, keys and cell phones. That’s the checklist most of us run through before leaving the house. If Silicon Valley engineers get their way, shoppers of the future will only have to worry about remembering their phones.

You’ve probably already checked the time on your phone instead of your watch. Some home security systems and apartment building access doors let residents buzz themselves in by dialing a secret phone number. Thanks to near-field communication technology, cell phones might replace credit cards as our preferred way to pay. If you can’t wait, you can elect to pay with your watch.

Phones like Samsung Galaxy Nexus can mimic a credit card’s contactless EMV chip. Just wave the phone at a MasterCard PayPass or Visa PayWave terminal for a speedy authorization that retail analysts claim will shave up to 8 seconds off the length of a transaction. You might not notice the difference, but a fast food restaurant or a convenience store will appreciate the extra few customers it can handle during rush hour, one of which may be you.

If your cell phone doesn’t support NFC, attach an EMV sticker to your current device, or to anything else you want to convert into a conduit for legal tender. Tapping your favorite toy against a gas station counter could pay for your soft drink someday.

Biometrics that let you pay with your body (legally)

Visitors to the Walt Disney World Resort in Florida can see the future, just by entering a theme park. Disney launched one of North America’s first broad deployments of biometric devices in 1996 to combat ticket scalpers. With a technology revision in 2006, annual pass holders need only scan a single finger at theme park turnstiles.

Instead of capturing fingerprints, biometric scanners combine key fingerprint points with maps of the veins beneath the skin. As retailers, banks, and consumers become more comfortable with the technology, shoppers could link biometric scans with securely stored credit card accounts.

Of course, some retailers still support the ultimate biometric device: a personal relationship with the customer. The merchant terminal service offered by Square allows retailers to set up a “tab” for customers who can “pay by name.” A barista or cashier who knows a regular patron well can select their name or photo from a list, charging a purchase to a card already swiped through one of Square’s magnetic stripe readers.

The service may feel like a return to Mr. Gower’s pharmacy in “It’s a Wonderful Life,” but mom-and-pop retailers can use the tool to encourage loyalty without investing in costly equipment.

Using the cloud to keep data secure

Workers at a big box retailer like Home Depot might not recognize a repeat customer by sight. That’s why the hardware megastore has teamed up with PayPal to eliminate the need for credit cards at its checkout counters. Typing in an email address and password can authorize Home Depot’s register to bill your bank account or credit card stored on PayPal’s secure servers.

The process resembles that of another PayPal service, Bill Me Later, that uses a customer’s email address, date of birth and social security number instead of an account number to process credit purchases.

Reaching this payment nirvana may require a hefty dose of ginkgo biloba as a memory aid, though. Compared to shoppers elsewhere in the world, Americans often struggle to remember passwords and personal identification numbers. When Visa studied differences in PIN adoption between Europe and the United States, they found that many Americans struggled to remember even the four-digit PINs attached to their debit cards.

Company spokeswoman Stephanie Ericksen actually wrote a blog post to assure American customers that a planned rollout of contactless EMV chips wouldn’t require cardholders to memorize any personal identification numbers.

Smarter smart cards

Consumers have embraced the convenience of loading prepaid debit cards at supermarkets and drugstores. Yet, keeping tabs on your balance still requires calling a customer service hotline or logging on to an issuer’s website. Asian banks have already piloted next-generation debit cards with electronic ink displays. The readout updates a user’s remaining balance with each purchase or reload. Banks may consider using the same technology to inform customers about available credit or potential fees for an upcoming transaction.

Clinging to the form factor of the traditional credit card could bring future benefits. Razor-thin batteries and microchips can reprogram credit cards on the fly, enabling users to summon an entire wallet’s worth of accounts from a single piece of plastic.

Sliding or tapping an interface can update the account number displayed on a credit card’s face, while reprogramming the magnetic stripe and EMV card to match. Instead of tapping a PIN number on a retailer’s point of sale terminal, you might tap a PIN directly on your card to unlock it. Technology like this makes a lost or stolen card useless to thieves, while blocking skimmers who might try to swipe or remotely scan your account information.

Even if the credit cards of the future carry the same shape as those of today, we predict they’ll look, feel, and act remarkably differently.

The original article can be found at CardRatings.com:
Credit cards of the future: 4 exciting trends

Credit or debit? Horror stories

It seems as if everyone in the United States is carrying some type of plastic these days. Whether you are a college student who needs a credit card for the first time or an adult in a career who has used one for years, buying on credit is part of our economy and culture. Even children are using debit cards these days.

According to the U.S. Census Bureau, an estimated 183 million people had credit cards at the end of 2011.

How you use your credit and debit cards can substantially affect your financial well-being. You don’t want to discover that your credit score has dropped or that your debit account is overdrawn.

We rounded up a few of the most outrageous credit and debit card stories the Internet had to offer. Let them serve as a reminder to take the necessary steps to protect your plastic — and your finances.

How many credit cards should I have?

Through-the-roof interest rates

• Type of card: Credit
• Horror story: Outlandish interest rates — 79.9% to be exact

We’ve all heard of people who have high interest rates on their credit card because they have bad credit. However, not many people can say they got a 79.9% interest rate without any warning. According to CNN Money, Toni Riss from Texas discovered she would be paying a lot more in interest than she originally expected. On top of that, she said, when she tried to cancel the card, it took more than six months to finalize.

No credit cards for dead people

• Type of card: Credit
• Horror story: You are alive, but your credit report says you have passed away.

It’s not every day that a person is denied a credit card for being dead. That is what happened to Rita Katz when she tried to apply for a Gap credit card, according to Bankrate.com. Apparently, there was some confusion, because Rita was clearly alive and ready to make some serious purchases.

Waitress’s skimming scam

• Type of card: Credit
• Horror story: Waitress takes your tab, your credit card information and a pretty nice tip.

There are times when you can’t decide how much you are going to tip, but to some unethical waiters or waitresses it doesn’t matter, especially the ones who use your credit card information to ring up their own gratuities, according to AOL. The lessons: Be careful when you hand over a credit card, and always check your statements for unexpected charges.

Paperless billing confusion

• Type of card: Credit
• Horror story: Paperless bill payment causes confusion about due dates.

Everyone wants the easiest bill pay option. For this reason, paperless billing has become the new thing to do. It’s quick, easy, environmentally safe and more secure than mail. You would think there are no problems with these types of bill payment options. Just make sure you are aware of your institution’s “terms and conditions” and the correct due date for payment. You don’t want to end up thinking your payment is due on the wrong day and then be late. That could cost you a lot in late fees and even higher interest rates.

$71 for McDonald’s

• Type of card: Debit
• Horror story: Overdrafts can make a small purchase enormous.

You probably wouldn’t be too happy about it if you learned that your child had spent $71 at McDonald’s. She might claim it was her own money to spend, but there is no excuse for spending like that. Yet that’s what happened with one 18-year-old. Little did she know that a McDonald’s purchase of less than $5 would turn into a $71 tab, thanks to overdraft and other fees, according to Business Insider. Always stay on top of your budget to ensure that you don’t overdraw your account — and teach your children to do the same.

• Find a better credit card

With luck, you’ve never been in a situation like these and never will be. It takes vigilance to protect yourself from credit card fraud and avoid fee traps. Be sure you always read and understand the terms and conditions of your cards, pay your bills on time and keep a close eye on your statements. It takes only one little mishap to get yourself in serious trouble. And if you don’t look out for your financial well-being, no one will.

More from Credit.com:

• 4 medical bill myths that can cost you dearly
• 10 ways to protect your credit (and your money)
• 5 sticky utility bill problems and what to do about them

The Credit Cards of the Future

NEW YORK (MainStreet) — Banks and credit card issuers may be beefing up their digital offerings, but it’s going to be a long time before the plastic credit card disappears.

While efforts are being made to move away from plastic, consumers are reluctant to adopt mobile payments because they’re unclear of the benefit they provide and security concerns persist. Many people also don’t have the technology — to make mobile payments you need a smartphone or other mobile device equipped with an NFC chip, the mobile equivalent of a credit or debit card’s magnetic strip (which is actually more secure, since the codes associated with them change periodically).

The functionality of credit cards is evolving, even if the plastic itself remains the same.

“To work the average consumer away from their cards is going to take a while,” says JJ Hornblass, executive editor of the blog Bank Innovation. “Plastic works. It’s hard to get consumers to change payment methods.”

This isn’t to say the credit card itself isn’t evolving. There has been a big push by several issuers, particularly Visa(V), to move U.S. cardholders onto EMV chip cards, which are programmed to change their verification value each time a purchase is made. The cards, which are more resistant to counterfeiting than magnetic strip cards, are already widespread in Europe. They have yet to catch on in the U.S., largely due to the fact that merchants don’t have terminals equipped to accept them.

Beyond these chips, many financial technology companies have developed products that build upon the plastic payment method as we’ve come to know it. These cards feature, among other things, dynamic magnetic strips, contact-less payment capabilities and buttons that let cardholders toggle back and forth between various accounts.

Research and Markets: Credit Cards Issuing

DUBLIN–(BUSINESS WIRE)–

Research and Markets (http://www.researchandmarkets.com/research/d9c5ee/credit_cards_issui)
has announced the addition of the “Credit
Cards Issuing – Global Outlook” report to their offering.

The global outlook series on the Credit Cards Issuing provides a
collection of statistical anecdotes, market briefs, and concise
summaries of research findings. The report offers insight into the
industry’s performance in the wake of global economic slowdown, and
evaluates the role of socio-economic and cultural factors, consumer
payment behavior, as well as marketing strategies in enhancing uptake of
credit cards. Regional markets briefly abstracted include the United
States, Canada, Japan, France, Germany, Italy, United Kingdom, Spain,
Australia, China, India, Indonesia, Singapore, Malaysia, Taiwan,
Argentina, Mexico, Brazil, and Middle East, among others.

Also included is an indexed, easy-to-refer, fact-finder directory
listing the addresses, and contact details of 155 companies worldwide.

Key Topics Covered:

1. MARKET OUTLOOK

• Industry Experiences Rough Weather during the Recent Recession
• What did Credit Card Companies do to Stay Afloat
• New Credit Card Trends Post Recession
• Credit Cards make a Come Back, Competition Heats Up
• Customers Confronted with Higher Credit Rates Even as Competition
  Increases
• Issuers Eye Big Spenders
• Companies Resort to Richer but Complicated Rewards
• Credit Card Processing Becomes More Complicated
• The Duping Saga Continues
• Credit Card Issuing – Future Trends
• Multifunction Cards
• Mobile Payments
• Contactless Cards
• Card Issuers Show More Innovation in Terms Of Offers
• More Non-Mileage Perks Replacing Reward Points
• Card Sign-Up Bonuses to Woo New Customers
• New Technologies for Protection against Fraud
• Accelerated Growth in Credit Card Markets of Emerging Nations
• Number of Credit Cards in Circulation
• Long-term Prospects better for Visa and MasterCard

2. INDUSTRY OVERVIEW

• Issuers or Issuing Banks
• Acquirers or Acquiring Banks
• A Peek into Key Markets Worldwide
• Asia-Pacific: The New Mint
• United States: A Dominant Force
• Europe: The Debit Card Rules
• United Kingdom: A Different Market
• Latin America: An Emerging Market
• Factors Influencing the Market
• Marketing Strategies
• Cultural Economic Factors
• Customer Ability
• Competition
• Brand Power
• Global Payments Market – A Snapshot
• Various Payment Products Ranked on the Basis of Preferences among
  Consumers with 1 for Very High Importance

3. PRODUCT OVERVIEW

• Introduction
• Chronology of Events
• An Evolutionary Scan
• Structure of the Industry
• Card-Schemes
• Issuers and Acquirers
• Payment-Service Providers (PSPs)/ Connectivity or Payment Suppliers
• Merchant Service Providers (MSPs)
• Merchants
• Customers
• Components of the Industry
• Credit Card
• Card Issuing
• Payment Process
• Authorization
• Settlement
• Supporting Framework
• E-Commerce
• Electronic Data Interchange
• Network Security Devices

4. RECENT INDUSTRY ACTIVITY 5. PRODUCT INNOVATIONS/ INTRODUCTIONS A
REGIONAL MARKET PERSPECTIVE

GLOBAL DIRECTORY

For more information visit http://www.researchandmarkets.com/research/d9c5ee/credit_cards_issui

Credit cards rewards swiped, RBA finds

To earn a $100 shopping voucher, you now need to spend more than $18,000. Photo: Jessica Shapiro

Credit card customers of the big four banks have to spend a whopping $18,000 to earn a $100 rewards program shopping voucher, according to new research from the Reserve Bank.

That outlay is 50 per cent more than card users were required to fork out a decade ago, the central bank said.

According to the RBA’s quarterly bulletin released today, the average spending required for a $100 shopping voucher was $12,400 in 2003 with the benefit to the cardholder as a proportion of spending calculated at 0.81 per cent.

By last year, the amount had jumped to $18,400 with the cardholder benefit slipping to 0.54 per cent of the spend.

The RBA acknowledges its share of the blame for the increase, stemming in part from reforms it made to the credit card market over the past decade to improve competition.

In particular, so-called interchange fees charged by the merchant’s financial institution to the cardholder’s financial institution every time a transaction is made have risen. Under the reforms, it sought to limit the amount that banks charged each other.

“Since the introduction of the reforms, the overall value of credit card rewards programs has declined and there has been an increase in annual – and other – fees,” the RBA said.

The central bank acknowledged some merchants had increased the effective price of goods faced by cardholders for credit card transactions by adding a surcharge for credit card use.

But in response to the changes, banks have cleverly targeted premium offerings in credit cards, such as platinum categories, where they can charge higher fees and recoup money.

Premium take

An RBA analysis of the new premium categories of credit cards that include higher annual fees shows users have to spend less – about $11,000 to earn a $100 shopping voucher – while some standard and lesser premium category users have to spend as much as $22,000.

“It has become increasingly expensive for cardholders to earn reward points and other benefits by using their cards, while merchant service fees have fallen,” said the RBA.

Card schemes have provided card issuers with incentives to promote cards associated with higher costs, the RBA said.

“These recent developments have increased the interchange and other revenue received by credit card issuers, which they may use to fund more generous rewards programs for cardholders without a need to increase annual fees,” the bank said.

That shift has had the relative effect of making some cards “more attractive to use”.

mevans@smh.com.au

What to do when family members use your credit card without permission

Dear Opening Credits,
I lost my job two years ago. My mom’s been paying off my Capital One and my Old Navy credit cards. I had payment protection on my Capital One card, and it was all paid off. But then one day I open my statement, and find out that my mom has been using MY card to make purchases, and this has been going on for a year. I told her to give me my card, and she refused to do so, thinking that I would use it and seeing as I have no income, have no way to pay the bills. It seems like I have nowhere to turn. What should I do about the situation?  — Julie

Dear Julie,
Interesting. Your mom came to your rescue in the beginning — when you hit hard times and couldn’t make good on your debt, she paid it down for you. Then, for some unknown reason, she decided to tap into one of those empty credit lines. Perhaps you told her that you’d pay her back, but then when you didn’t, she decided to take matters into her own hands. Something tells me that there is more to this tale than mom going haywire over nothing.

Nonetheless, it is not OK for anyone — close relative or total stranger — to pay for things with a credit card that they are not authorized to use. In fact, it’s a crime. Even if she felt it was justified. Now, if your mom did just go off the deep end and either gave into shopping temptations or became desperate for money, she also betrayed your trust. In that case, she would have to do a lot of work to regain it.

So let’s get to how you can mitigate the financial and credit damage that you’re now facing. First, you shouldn’t be held responsible for the bills that your mother made. These are fraudulent charges, and the Fair Credit Billing Act states that as the victim, your maximum liability for unauthorized credit card charges is $50. That’s a trifling amount in the first place, but most credit card companies have gone a step further and adoped a zero liability policy , where you would owe nothing for such unauthorized charges. I checked Capitol One’s website and it is among the creditors who are protecting its cardholders this way.

A particularly strange part of this story is that your mom is refusing to hand the card over. However, you don’t have to snatch it from her physically to stop her from spending with it. Just call the company and report the card as stolen. That will render it nothing but a useless piece of plastic. Other steps to take:

• Contact the police. Report the crime. Yes, against your own mother. They will investigate and she could get in trouble. I say “could” because even when you know the person who scammed you and have proof, sometimes very little happens to the thief.
• Alert Old Navy. You don’t want your mom to do to your retail account what she did with Capital One . Let them know what has happened so they can prevent mom from racking up debt.
• Notify the three credit bureaus. Place a credit freeze on your credit reports. This will prevent her from opening up any new accounts in your name, just in case she is so inclined.

As far as your credit rating, when your credit card company wipes the debt from your record, your reports and scores will rebound.

What remains now is what to do about your mother on a personal level. If she stole from you for no reason, she should make amends. Yet if you were partly to blame because you didn’t repay her when you had an arrangement to do so, then you may have to shoulder some responsibility as well.

See related: When family members ruin your credit , How to cope with massive family credit card fraud

• What to do when family members use your credit card without permission
• Can you sue an authorized user?
• 6 tips for finding the right debt management plan for you

CompareCards.com Reveals Best Cash Back Credit Cards

CHARLESTON, S.C., March 14, 2012 /PRNewswire/ – CompareCards, a leading service for consumers to compare credit cards and manage their personal finances, has announced its Best Cash Back Credit Cards of 2012 list to help consumers pick the best deals out of an expanding landscape of special card offerings and rewards programs.

Cash back cards provide a great opportunity for consumers to be rewarded for financial responsibility and earn money back on everyday purchases like groceries and gas.  Tailored for people with excellent credit history, the Best Cash Back Credit Card list offers helpful information and specifics on this year’s most valuable cash back deals. The top five cards are as follows:

• Blue Cash Preferred(SM) Card from American Express – CompareCards.com’s favorite cash back card offers an amazing 6% cash back on grocery purchases, 3% cash back at the pump and at department stores along with 1% cash back everywhere else.  This card also offers a 0% intro APR on purchases for 12 months and an upfront bonus of $150 after you spend $1,000 in the first three months of ownership.
• Chase Freedom Visa – $200 Bonus Cash Back – Gives cardholders a $200 statement credit after spending just $500 in the first three months of ownership.  This cash back card also offers a flat 1% cash back rate on all purchases with 5% cash back on rotating categories each and every month.  This card has no annual fee.
• Capital One Cash Rewards – $100 Cash Back – This deal provides $100 cash back after spending $500 in purchases during the first three months and includes a 0% intro APR on purchases and balance transfers until March 2013. The cash back program also gives 1% cash back on all purchases and a 50% bonus on the cash back you’ve earned every year.
• Citi® Dividend Platinum Select® Visa® Card – $200 Cash Back – A $200 cash back bonus is as good as you’ll find for a cash back card and the Citi Dividend World MasterCard – $200 Cash Back delivers just that.  A $200 statement credit comes after spending $500 in the first three months and 1% cash back is earned on all purchases.
• Blue Cash Everyday(SM) from American Express – This special offer starts off with a $100 cash bonus after spending $1,000 in the first three months of card ownership.  The card offers 3% cash back on grocery purchases, 2% cash back on gas and at department stores and 1% cash back everywhere else.  There is also a 0% intro APR on purchases for 12 months and no annual fee.

All of the cards included on the CompareCards.com list of Best Cash Back Credit Cards, along with additional details on what each deal has to offer, can be found on the CompareCards.com blog or CompareCards.com YouTube feature.

“The credit card market is becoming much more diverse and people can really take advantage of consumer-friendly programs to earn extra money,” said Chris Mettler, president and founder of CompareCards.com.  “Cash back deals are ideal for consumers who pay off their balance each month and this list provides a great resource for them to capitalize on their responsible financial decisions.”

With recommendations that put the consumer first, CompareCards.com provides crucial information for homebuyers, students, business travelers and others looking for guidance on credit card deals and other personal financing issues.  CompareCards.com also offers live chat during normal business hours, providing visitors with access to expert credit specialists for additional assistance.

For more information on CompareCards.com, along with details on its services for consumers, just visit CompareCards.com. 

About CompareCards.com

CompareCards.com serves as an efficient navigational tool in the ever-increasing space of online credit card offerings. Started as a listing resource for consumers, the site has expanded steadily and now serves as a multi-dimensional service for users to compare credit cards side-by-side and utilize additional functions to manage their credit. The site analyzes details on more than 100 leading credit card offers and has been mentioned in Business Insider, ETV Public Radio, CBS Money Watch and MainStreet.com.  For more information, just visit http://www.comparecards.com.

Contact
Ryan Boger
rboger@fwv-us.com
919-277-1166

MoneySmarket published Spring clean your credit cards

Millions of people stick with the same plastic year after year. If you’re one of them, now’s the perfect time for a credit card clear out.

Spring is the ideal time to review your credit cards and to get your finances in order, so that you don’t end up paying more than you need to for your borrowing.

Here, we explain why it’s so important to ditch high-interest charging cards, and uncover which providers are currently offering the best deals, whether you want a balance transfer card, or a card for purchases.

Best for balance transfers

Spring might be in the air, but many of us will still be paying off our Christmas debts and may have also recently paid for this year’s summer holidays. But, in either case, you can help reduce the financial burden by switching to a card with a lengthy introductory 0% period on balance transfers.

By switching £2,000 worth of debt on a card with an average APR of 18.4% to the market-leading 22-month Barclaycard Platinum Credit Card with Extended Balance Transfer, you would save a massive £263 in the first year alone – even after the 2.9% balance transfer fee of £58 is factored in. After the introductory period ends, the card has a representative APR of 17.9% (variable).

Halifax offers an equally generous 22-month 0% introductory rate on its Balance Transfer Credit Card, but has a higher balance transfer fee of 3.5%. When the 0% period finishes, the card has 17.95% representative APR (variable).

If you have a less-than-perfect credit rating and don’t qualify for the best deals, then don’t despair, as Capital One has just launched the Balance card, which is suitable for anyone with an average to good credit history who is looking to transfer a balance across from another card.

This card offers an introductory rate of 0% on balance transfers until September 2012 and comes with a low balance transfer fee of 1.7%. It is unlikely to be suitable for those who owe large sums, as it comes with a credit limit of up to £1,500.

You should try and pay off what you owe within the introductory period, as if you don’t, you will be charged interest at a high representative APR of 34.94% (variable).

Tim Moss, head of loans and debt at MoneySupermarket said: “Moving existing credit card debt onto a 0% deal could save Brits a tidy sum of money, but they also need to consider how much realistically they are able to repay every month in order to find an appropriate product for their situation.

“People should also be aware that even if they are accepted for a good product now, there is no guarantee this will be the case in a year’s time, so careful planning is required to ensure credit card debts are cleared in the most efficient way possible.”

Top low rate cards

If you cannot afford to repay a debt on a 0% card within the introductory period, you could consider switching to a low rate credit card instead.

Switching a balance of £3,000 to the market-leading low rate credit card from Sainsbury’s at a representative APR of 6.9% (variable) and repaying £150 per month would take 22 months to clear the balance and save you £444 in interest, compared to making the same-sized monthly repayment on a credit card with the average APR of 18.4%.

Other low rate cards worth considering include Barclaycard’s Platinum Simplicity card, which has a representative APR of 7.9% (variable.) However, you cannot transfer balances held on existing Barclaycards to this card.

Cheapest cards for spending

Once you’ve dealt with your existing credit card debts, don’t be tempted to spend using same card, as usually you will be charged a much higher rate on new spending.

You should instead take out a different card for spending, and there are plenty which offer lengthy 0% introductory rates on purchases. For example, both the Marks Spencer Credit Card and the Tesco Clubcard Credit Card, offer 0% on purchases for 15 months.

Neither of these cards has an annual fee, but you’ll have to make sure you pay off your debts before the interest-free period ends or you’ll be charged representative APRs of 15.9% and 16.9% (variable) respectively.

Both of these cards reward you when you spend. With the MS card, you earn one point for every £1 spent at MS and one point for every £2 spent elsewhere. The Tesco card gives Clubcard points at a rate of one point for every £4 spent.

The Barclaycard Platinum with purchase card is also worth considering, again provided you are confident you can pay off any spending within the 14 month 0% introductory period. After that, it has a representative APR of 18.9% (variable). This card also offers 14 months at 0% on balance transfers, subject to a 2.9% transfer fee.

Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

First Person: My Life Without Credit Cards

I live without credit cards, and I don’t want any either. The interest rates are too high, and it’s just another bill I’d have to pay. Plus, I have past proof that if I were to own a bunch of credit card accounts, I’d simply mismanage them.

Cash

Cash is still king in my life. I prefer to purchase everything in cash or with my debit card. If I don’t have the money to buy something, I wait to make the purchase and save the money.

About six months ago, I needed a new computer. Mine was slow, loud, and dying. Instead of running out and buying a new computer, I contacted my dad and asked him to build me a new computer. He said he could build one for $200, but it would take four weeks. I could live with the wait. A new computer from a retail store would have cost me $800.

For those four weeks, I saved $50 a week. I also cleaned my old computer with a can of air, defragged the hard drive, ran the virus scan, and deleted any unneeded programs. I had to make my old computer last four more weeks.

It took my dad five weeks to build the computer. I saved $200 for the purchase, and managed to make my old computer last until I could get my new one home. I also saved $600 over the cost of a store bought computer and didn’t use a credit card which would have only added to the cost by 15 percent to 25 percent and forced me to make monthly payments.

Interest Rates

I’m not a fan of interest rates. And, with my prior credit card history, I’m almost assured to have an interest rate that’s between 23 percent and 25 percent. That means that every dollar I borrowed would cost me 25 cents. That’s wasted money.

To put it in perspective for myself, I like to think of the wasted money in terms of food. If I borrowed $5 at 25 percent interest, the wasted money would amount to a loaf of bread, a bag of rice, ketchup, or four small cans of tomato sauce. That’s food I wouldn’t have in my pantry if I borrow money with a credit card.

Mismanagement

To cement my opinion about credit accounts, I think back to the days when I had eight credit cards. The total monthly bill for all my credit cards was $400. I can eat quite well on $400 a month. I can even go out to eat with that kind of money.

However, instead of paying those cards off, I went broke after college. That meant I couldn’t afford to make my credit card payments. All the accounts went into default wreaking havoc on my credit score, and because my credit score was so low I had to pay to open utility accounts. The electric company wanted $150 to open an account. The gas company wanted $300. It was extra money I didn’t have, but I had to find it in order to have heat and lights.

Since I don’t want to go back to living like that, I don’t want any more credit cards. I buy everything I need in cash, and I’m fine with that. It’s less expensive in the short and long term, and it has taught me how to budget my cash very effectively.

*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you’d like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.