An Introduction to Credit cards

WILL that be paper, or plastic? These days, our answer to that question is most likely to be plastic, as an increasing number of us rely on credit cards for our spending needs.Whether it's to spread the cost of an expensive purchase over several months, or to gain points towards a reward item, UK consumers are using credit cards more than ever - and owing close to £180 billion as a result. With the relatively easy availability of credit today, more can get in on the act - from greater numbers of companies offering Visa, MasterCard or store cards, to more people being approved for cards, including students and even those with shaky credit ratings. A credit card is a simple way of obtaining a credit rating and, used wisely, can help provide flexibility in spending and even bonuses like cash back offers or travel credits. However, they can also be an easy way to get into serious debt, when used improperly.Many people are lured into applying for certain credit cards with the promise of low - sometimes ridiculously low - interest rates, but depending on your personal circumstances and financial situation, there may be more important factors to consider.