Cheap credit card

So, you want a cheap credit card? uSwitch.com can help you cut the cost of your credit card by switching to one better suited to your needs. There are hundreds of cards on the market, so how can you be sure yours is the cheapest?

We, as a nation, are addicted to our little plastic cards. UK consumers spent £437 billion on their cards in 2004, according to Datamonitor, an information company that provides industry analysis for financial services. So, how much of this money was yours?

If you have an outstanding balance, you can probably save money by switching to a cheaper card that offers a low interest rate for balance transfers.

Once you have a cheap credit card, the obvious way to cut your costs is to stop racking up a debt on it, and start making reasonable payments (that you can manage). It’s the only way you will really cut your credit card costs.

Make payments on time, and, if possible, pay more than the minimum monthly amount. Paying the minimum balance only will mean years of paying off your credit card debt, and paying a total that far exceeds your original spend.

If you make late payments, you will be charged extra interest and probably a charge of around £15 to £25. And, if you exceed your personal credit limit, you will be hit with yet another charge, which, again, generally ranges between £15 and £25.

You may also be charged interest on the total of your initial purchase, even if you have made part payments.

It's all too easy to ignore your accumulating credit card debt, but if you use your credit card smartly it will be a "cheap credit card".