Credit cards

There are lots of different types of credit cards available. Standard cards are available to anyone aged 18 or over (subject to the acceptance of your application).

Premium cards tend to offer higher credit limits and lower interest rates, and are generally given to people who are less of a risk to lenders. Therefore if you have a good credit rating and have a secure and well-paid job then you're less of a risk.

Some credit cards are issued on behalf of charities or other organisations, and donations will generally be given by the credit card company when the card is issue and used.

For more information on the different types of credit card available, and advice on choosing the right one for you, go to the Money Advice Service website.  You can also compare different products out there by using comparison websites.  When using comparsion websites, always keep in mind that some may make money themselves by promoting certain products and services. 

Credit card considerations

If you do decide to get a credit card, there are important things to consider:

• Most banks and credit card companies have different interest rates, interest-free periods and benefits.
• If you are thinking of getting a credit card or loan it is best to shop around and check out the interest rates and benefits of different banks and credit card companies.
• Comparison websites such as moneysupermarket.com and moneyextra.com will allow you to search the different loan and credit card terms and conditions and offers, and choose the one that suits you best. It is worth checking a few comparison websites to get the best deal.
• Beware of some comparison websites and tables that are sponsored by certain companies or banks as they may be biased.
• Some Internet comparison sites also provide a facility where you can type in the features you want in a credit card/loan and it will search the products for you.
• Beware of comparison tables that are out of date. Some newspapers will publish details of the best credit cards/loans of the week and you can guarantee the details will be correct.
• Once you have decided on a few options, check the company website or phone them to check that the offer is still valid and that the advertised interest rates, terms and conditions are still the same.
• Remember that the interest rates are the most important things rather than any gimmicks as this is ultimately how much extra you will be paying back. You can get more useful information on credit cards from the Money Advice Service.

Other cards

There are other ways of getting credit e.g charge cards, which are similar to credit cards except you have to pay the balance in full each month.

There's also store cards which are pretty much like credit cards which can be used in certain shops.

Remember that all credit based cards tend to charge really high interest rates so you will end up paying alot more for what you buy if you do not pay the balance in full every month/statement.