Everyone likes to have a choice, but there is so much bright and glossy plastic out there it can sometimes make your head spin. Firstly, you should know the difference between the various types of cards.
Credit Card: Lets you borrow money and pay it back in monthly payments. It is largely down to you how much you pay back each time, but there is usually a minimum payment of £5 or minimum percentage of your balance, say 2 or 3%.
Debit Card: Is usually linked to your current account. Rather than taking cash out, a debit card means you can make quick and easy transactions, which show up on your account almost straight away.
Charge Card: Means you charge purchases to an account. Offers a monthly statement that needs to be paid off in full. Most issuers charge a membership fee.
Store Card: You will probably have been offered one of these while out shopping. They are a credit card offered by a retailer, so they restrict where you can spend. Relatively easy to get, but they charge high rates of interest on balances.
Affinity/Charity Card: Money goes to charity when you open an account, as does a small percentage each time you spend.
Cashback Card: Will pay YOU for spending on them. But if you do not pay off full balance every month, the interest goes sky high.
Pick a card, but not any card!
