UK Credit Cards
Credit Cards available to the United Kingdom are pretty much the same as those
of the United States. Credit card use is by far highest in the Unites States
but the United Kingdom comes second. UK credit cards work the same in that you
use them to pay for purchases and pay back the credit card company once a
month. Interest accumulates on your remaining balance if you don't pay in full
each month. The credit card company then reports to a credit bureau (the UK has
a similar system to that of the US but is still working on better
organization), which then creates credit scores of those who use credit cards.
Interest Rates
As like in the US, credit card companies can charge whatever interest rates they
want. Some UK companies have charged as high as 64.9% but some are very low
being around 5%. As you can see there’s more variation in interest rates in the
UK so be sure to pay close attention to the APR when applying for a UK credit
card.
Privacy Laws
One good thing, the UK has better privacy laws. A consumer has to "opt in" to
have their information shared. Whereas in the United States consumers have the
right to "opt out" but never have to be asked in the first place if they want
their information shared.
Applying for a UK Credit Card
The application process is pretty standard just slightly different terminology
such as "flat" instead of apartment. As expected they will need information
such as name, date of birth, address, phone number, employment information,
income amount, and personal financial information. Other required information
varies depending on the credit card company. Some examples may be mother’s
maiden name, previous residence, and credit history questions. As with United
States credit cards, many UK credit cards can be applied for online. This is
very convenient since it saves you time. This also allows you to compare many
credit cards from the comfort of your home computer.