The Plastic Credit Card - A Modern Way to Manage Your Money in the UK
Using a plastic credit card is a great way for people in the UK to keep track of their expenditures. The detailed monthly statement a cardholder receives every month shows exactly where the money is spent. This important tool helps those who hold plastic credit cards to identify trends in their spending and adjust accordingly. In this article, we'll talk about credit cards and about other types of cards such as discount, ID, loyalty, membership, security and debit cards.
While owning a credit card is almost a badge of honor for many people, there are other types of cards that might be better choices than running up purchases on a traditional credit card at interest rates that often top 20%. One of the most popular alternatives to a credit card is a debit card. A debit card is linked directly to your bank account, usually your checking account. Debit cards often carry the logo of the major credit card companies. When you present a MasterCard debit card or a Visa debit card to pay for a purchase, the merchant runs the card through the system just as if it were a credit card. The important difference is that there's no interest added to your purchase and the money comes out of your account immediately when you use a plastic debit card. Plastic card manufacturers go to great lengths to assure the security of their products. During plastic card printing, for example, a hologram often is added to the surface of the card. A hologram is a special-purpose 3-dimensional picture that's virtually impossible to duplicate. You also might find a clear plastic credit card with a miniature computer chip implanted into it. Similar security devices can be found in plastic discount cards, plastic membership cards and plastic business cards.
To help prevent unauthorized use of the credit card number, the physical card sometimes contains a number on the reverse side. Merchants, especially online merchants often require this number to complete a transaction to assure that the card is in the possession of the person placing the order and that someone isn't just using the number to make a fraudulent purchase.
While a plastic card, especially a credit card, is a very popular way to purchase goods and services, the debit card isn't far behind. Also popular are plastic discount cards. Although the customer has to pay for the item in full at the time of purchase, if he uses a discount card (often issued by the store itself), he's likely to not only save money but also avoid the interest charges associated with using a plastic Visa card or other credit card. A Visa debit card is a much better choice for the cost-conscious consumer.
There's no doubt that the plastic credit card will continue to be widely used in the UK. If possible, consumers are counseled to pay their balance in full every month to avoid the double-digit interest rate.