Credit Cards vs Loans

If you're more interested in getting a card as a way of borrowing money - rather than for its convenience - bear in mind that there are cheaper ways to borrow money.

The experts say credit cards are a bad way to manage debt.

Here are some alternatives ways to borrow money:

Personal Loans

Remortgaging

Bank Overdraft

Personal loans

You could find a personal loan that has a lower rate of interest, certainly if you're looking at a long-term debt.

We have a website, Loan Sorter, which goes into this in much more detail. If you want to go there now click here

Remortgaging

Assuming you own property, this should be relatively easy to arrange - either with your existing mortgage lender or preferably by shopping around and finding one who's offering a better deal.

This is probably the cheapest way of borrowing money in terms of the level of interest.

The amount you pay back monthly may not seem very much when added onto your existing mortgage payments, compared to the amount you get in your hot little hands.

We've got a detailed section on remortgaging in our website Mortgage Sorter. It covers the subject fully and can link you with a broker who will advise you on whether you could remortgage. If you want to go there now click here

Bank Overdrafts

You could borrow from your bank in the form of an agreed overdraft on your current account.

Like remortgaging, this is seen as a cheap way of borrowing - provided you don't go overdrawn for too long.

However, unless you're very disciplined it can be difficult to ever get round to clearing off the overdraft. This will only cost you more than you expected, so try to be realistic.

Make sure your going overdrawn is agreed with your bank or the reminder letters alone will cost you dearly. "The cost of preparing this advice is £15" reads the badly photocopied letter...

The interest charged on unauthorised overdrafts is usually very high.

Credit Card Guide

What is a credit card... The usual terms... How to apply for a creditcard

Interest and Credit Cards... Low interest credit cards... When does the interest charge start... How interest is calculated.. How to get interest-free credit... The APR and Credit Cards...

Introductory deals / special offers... Crad Introductory interest rates...

Card Purchase protection... Faulty goods... Anti fraud guarantees... Emergency cards / cash... CreditCard Protection... Stolen cards / Fraud... Internet crad fraud...

Reward schemes... Cashbacks... Cash withdrawals... Holidays and your card... Free Travel Insurance...

Never heard of the card issuer?...

Minimum payment amounts... Credit Card Statements... Annual Fee... Late Credit Card payments... Credit Limit...