Top ten Credit Cards

Today, instead of pointing out the latest best buys, I will show you five key issues with credit cards, along with one or more of the baddest perpetrators in each of these classes. About 99% of all credit cards do not bill annuities, so why stay with a credit that includes a docket?

Highest annuity I could find was £95 for an MBNA Europe Bank Travel Amex and £90 for a Coutts & Co. Do not use any credit cards with an annuity. Instead, select one of the 1,300 or so you don't have paid every year - even if you don't use your credit for it.

Typically a credit cardholder debits an annual fee of 18. 7 per cent annual return, compared to the Bank of England's key interest of 0.5 per cent per annum. Some cards, however, require much higher prices for shopping, especially for those with bad credit ratings. Vanquis Bank Visa (39. 9% APR) and Capital One Bank Classic Visa (34. 9% APR) levy two of the highest APRs.

So why earn double-digit interest on credit cards when you can earn up to 16 free credits with a 0% draw? In the 1980s, the minimal amount of credit cards repayable per months (MMRs) was between 10% and 15%; today it averages around 2.5%. Surprisingly, some credit cards have fixed their minimal repayment rate at just 1% per annum (a £5 per annum minimum).

Among the most serious criminals in this class are Bank of Scotland/Halifax and Capital One Bank, whose cards could take a life to erase at this low MMR standard. In order to prevent interest, you always completely settle your whole account balances. Otherwise, if you are unable to withdraw all your funds, create a regular payment or credit card to refund as much as possible.

You should never count on your MMR to cut your debts. Don't draw money on a creditcard because that' what debit cards are for. By ignoring this tip, you are expecting to be paying a very high interest payment on your purchases, plus a substantial additional surcharge. Sygma Bank UK Silver MasterCard and its flybe Spend&Fly MasterCard are distinguished by the fact that they require a least one five (3% commission; £5 minimum) for each outpayment.

Do not use credit cards to draw money. If you use your plastics abroad or buy your plastics on-line in non-sterling currency, your credit cardholder will add a charging rate abroad to each sale and payment. Though some valuable credit cards do not collect this extra toll, almost all calculate between 2. 75% and 3% for forex.

Too many rogues in this class, so I'll just happen to pick two exhibitors from a long line of cards that can't be taken abroad: The first Direct/HSBC and Sony credit cards all debit 2nd generation cards. Use a Best Buy No-Load credit abroad credit line, such as the Post Office Classic MasterCard or the Santander Zero MasterCard.

Eventually, a tip for bonuses: If you master the use of a credit cards by avoidance of interest and fees, you go ahead and make cash with your plastics. Grab a cash back credit and make a living while you buy!