Let’s face it, Christmas can be an incredibly expensive time, and often a time that our wage packets are unable to handle. In order to prepare for your purchases over the holiday period, you might be looking to apply for a credit card.

Everyone enjoys doing their Christmas shopping in their own way; you could be incredibly organised and have everything bought and wrapped by November, but most of us do it in early December, and inevitably leave some of it until the last minute.

However, with just 35 days  until Christmas Day, you will need to start thinking about applying for your new credit card so that it arrives in time for you to use it for your Christmas shopping.

Of course, there are several different types of credit card available and some take longer than others to arrive due to the way the card application process is handled.

Some credit cards are what’s known as ‘instant decision credit cards’ and they pretty much do what they say on the tin – you apply for the card online and the credit card company comes back to you with its decision within a couple of minutes, unless they need more information from you in order to make the final decision.

Cards that don’t offer an instant decision can take around 7 calendar days to get a decision to you.

Either way, you will still need to sign a credit agreement (some issuers allow you to do this online using a digital credit agreement), and wait for the card and PIN to arrive in the post so it is important that you apply now.

Here are the application deadlines for our top eight Christmas credit cards and have been calculated on the basis that you wish to receive your cards by 5th December, for those organised Christmas shoppers or 18th December 2011, for those who like to leave their festive shopping until the last minute.

It is important that you compare the credit cards available to you before applying to make sure that you choose the one most suitable for your needs (you should only make one application for credit at a time or it will make you look like you are desperate for credit and put off prospective lenders). To ensure that you receive your Christmas credit card in time for you carry out your festive shopping you should apply in plenty of time and account for any potential problems with the application.

Types of credit cards

The way in which you plan to use your Christmas credit card, combined with your credit rating, will affect the credit card you should apply for. Listed below are definitions of the different types of credit cards:

Instant decision

Instant decision credit cards provide many applicants with the result of their application within 60 seconds online. However, these results are not always instant if you do not meet exact criteria. If it is harder for the lender to judge your application, this decision will be delayed. These can be ideal for last minute Christmas shoppers as they are more likely to arrive in the nick of time.

0% purchases

Many credit cards offer customers introductory offers and deals to persuade them to take out their credit card. One of the most common deals for new customers is 0% interest on purchases for a fixed period of time. This is an excellent Christmas credit card because it allows consumers to buy all their festive gifts without having to pay high interest payments too.

0% Balance transfer

This type of credit card is designed to help consumers reduce the cost of their outstanding debt, as they can transfer high interest balances to a cheaper card. This card should not really be used for additional borrowing, but reducing the cost of existing debts. If you are looking for a card to do Christmas shopping a 0% purchases card may be more appropriate.

If you are looking to transfer a balance from another card because your last 0% balance transfer (BT) offer has run out and you need a 0% purchase deal for this year’s Christmas shopping, you can get cards that offer both a 0% BT and 0% purchase interest free period.

Credit-builder

If you don’t have a good or excellent credit rating, you might struggle to get accepted for a standard card. Credit building credit cards are designed to help consumers improve their credit score and their ability to access more affordable credit in the future. This credit card should not really be used to borrow money – you should really just use the card to pay for things and then pay the bill off in full each month to demonstrate to future lenders that you can manage credit sensibly. If you don’t pay your bill off in full each month, you will have to pay high interest charges because the interest rates on cards for building credit are higher than standard cards.

Rewards

These cards reward their customers for spending on their credit cards. Benefits can range from air miles to High Street gift vouchers. The interest rates are usually higher on reward credit cards due to the value of the benefits cardholders can receive. Rewards credit cards are best suited to people who use their credit cards regularly but always pay off the full balance every month. If the balance isn’t paid off in full each month, the interest charged will outweigh the rewards earned.

Christmas credit card tips

• If you have opted for a 0% purchases credit card, make sure you have the ability to repay the outstanding balance before the introductory period expires or you will face interest charges on your remaining balance once the 0% period ends
• Using credit cards for purchases of between £100 and £30,000 will protect you under Section 75 of the Consumer Credit Act, meaning that if a company fails to deliver your items (if it scam you or if it goes bust) you can claim your money back from your credit card company
• Compare credit cards to make sure you are getting the best deal.

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If you’re looking to borrow some cash over the short to medium term, personal loans and 0% credit cards are two of the most popular options. Both allow you to fund the purchase of a one-off item or to fund home improvements at a low interest rate.

While personal loans are often seen as the first choice for many people, 0% purchase credit cards can actually be better than a personal loan for several reasons. Our guide explains why.

Pay less interest with 0% credit cards

0% purchase credit cards allow you to benefit from a period (typically 6-12 months) where you pay no interest on your credit card borrowing. This means that if you’re planning to pay off a one-off purchase within the nil rate period, 0% credit cards can offer you interest-free credit on your borrowing.

This is where the best credit cards for purchases compare favourably to a personal loan. Even if you secure a low rate personal loan, you will still end up paying some interest even if you pay off the loan within a short term.

Make sure you repay the card balance before the 0% period expires

If you plan to use 0% purchase credit cards to borrow, make sure that you will be able to repay the total card balance before your 0% deal expires.

If you don’t, you could end up paying more interest than on a personal loan. This is because credit card interest rates tend to be higher than unsecured loan rates.

Shop around to compare credit cards

When looking for 0% credit cards, make sure you do your homework. There are a number of different 0% credit cards available so make sure you find the right one for you. For example, some only offer 0% interest on certain purchases or at certain stores.

Make sure you do your research and compare credit cards to find the right interest free deal for you.

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Credit cards can sometimes be a lot cheaper, more secure and easier than personal loans. Credit card and unsecured loans are two of the most common ways of borrowing money.

If you have to rush for unsecured credit to meet an imminent expense, you are likely to turn to credit cards. However, another available option is available, the personal loan.

Personal loans are different to credit cards, because the former offers you a revolving line of credit whereas the latter comes with a maximum credit limit.

Since personal loans are unsecured, the bank or lender can’t repossess your property, i.e. your home or your car. If you want to pay out a one-time expense that you cannot afford, a personal loan may easily offer you a more competitive and manageable interest rate than the regular rate on your existing credit card.

Conversely, when you go for a personal loan, you will have a chance to choose your monthly payment and the loan repayment period. The good thing with a loan is that you are aware you will be progressing in paying off your loan every month because you have a fixed monthly repayment and no option to make a ‘minimum repayment’.

With credit cards, it may be more tempting to get out of paying back large sums of cash by just repaying the minimum repayment, which will hinder you from clearing your balance and will cost you far more in interest over the term of the loan.

If your expected expense is small and you feel you can pay it off quickly, a credit card would probably be better than a loan, especially if it is offering a low or 0% intro APR on purchases.

Another main advantage of credit cards is that they usually provide excellent short term incentives. 0% credit cards are widespread and offer better value than any lowest interest loan. Even if 0% credit cards offer a short introductory 0% rate, loan rates will unlikely be able to compete.

Loans are never better than 0% credit card. When looking for short term borrowing, that is, a week or even one month, paying a small fee for the credit card interest (if you can’t get a 0% offer) over the one month will likely be better than signing up to a personal loan for a year or even more. You will automatically pay less.

If you compare personal loans to 0% credit cards, there are lower monthly repayments when you use credit cards. Personal loans require you to make the same monthly repayment for the term of the loan, but credit cards offer you the freedom and flexibility to make smaller repayments as you wish, so long as it meets the minimum repayment.

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Back in the “old days” before credit cards were so widely used, most people would hang on to the credit card they qualified for, regardless of how high the interest rate was. But with competition, you can save yourself hundreds or even thousands of pounds in fees and interest if you compare credit cards and are careful about how you use them. There are lots of good reasons why you should compare cards, particularly when it is so easy to do online.

For one thing, you can cut out a lot of interest by using a balance transfer credit card with a long 0% balance transfer rate. Right now the Barclaycard Platinum comes with a 20-month 0% balance transfer offer for new customers, the longest 0% term available. While there is a balance transfer fee of 3.2%, that still represents a huge saving over the average 16.9% interest rate on credit cards. If you already have a Barclaycard, MBNA has an 18-month 0% balance transfer card with a 2.88% balance transfer fee.

If you were to shift, say, £2,000 on to the Barclaycard, you would be charged £64 for the 3.2% fee. You could pay £115 per month and pay off that debt in 18 months. On a card with a 17% interest rate, you would have to pay £126.66 per month to pay it off in 18 months, so over the 18 month period, you would save around £280 in interest by switching, with a total saving of £216 once the £64 balance transfer fee has been taken care of.

Be sure that you understand the difference between a 0% balance transfer card and a 0% purchase card. Often, 0% balance transfer cards charge interest on purchases just like regular credit cards. This means that you should only use it to pay of a transferred balance. For new spending, you should consider a 0% purchase card.

With 0% purchase credit cards, you can make purchases interest-free for a set period. The Tesco ClubCard credit card, for example, has a 13-month 0% purchase period. This could be good if you are planning a big purchase, such as a new flat screen television. If you used your 0% purchase card to buy a television for, say, £750, you would have 13 months to pay it off without having to pay interest. You could pay £58 per month and have it paid off in 13 months and avoid interest altogether.

With either 0% balance transfer cards or 0% purchase cards, you must make sure you pay the balance off on time. With many cards, once the period is over, you start paying interest that would have accrued during the 0% period as well as new interest, so be sure to read the card’s terms and conditions carefully and avoid going past the 0% period.

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New research has found that the levels of saving in the UK fell in 2010 as consumers used their surplus funds to repay unsecured borrowing. The figures from professional advice website unbiased.co.uk discovered that over £12 billion of credit card debt was repaid last year; the highest level since the figures began in 2005.

Consumers using cash to pay low rate credit card debt

According to the research, repayments to credit card debt outstripped new lending for seven consecutive months to the end of 2010. The increase in repayments to credit card and unsecured debt was attributed to people wanting to reduce their debt in an uncertain economic climate as well as the fact that new borrowing was being restricted by banks.

The focus on repaying debt hit savings in the UK with levels falling from £20 billion during the first quarter of 2010 to just £15 billion in the final quarter.

0% credit cards are perfect for reducing debt

If you are planning to reduce your unsecured borrowing in 2011, 0% balance transfer credit cards could be the perfect answer. These 0% credit cards allow you to transfer your unsecured debt on to a nil interest rate for a set period.

They help you to repay your debt faster, as you have no interest to pay during the introductory period.

Many websites feature a credit card calculator which will help you analyse your balance and work out how quickly you can repay your debt. And, with an increasing price war raging on 0% balance transfer credit cards, finding a low rate credit card is easier than it has been for some time.

Overall, Britons repaid 14p of debt for every £1 they saved during the three months to the end of December 2010. So, if you want to repay your debt faster, 0% credit cards could be the perfect answer.

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There has never been a better time in recent years to compare credit cards. That is the conclusion of a new survey which has found that credit card rates in the UK have hit their highest level this century. Lender worries over increased arrears have nudged the average credit card interest rate to levels not seen since 1998.

Interest free credit cards can help you reduce your interest costs

Research has found that the average credit card rate in the UK is now 18.9 per cent; the highest level for thirteen years. Credit card rates have been increasing gradually from their average of 16.8 per cent in 2008, although rates have not been this high since February 1998 (when rates averaged 21.1 per cent.)

Consumers are being urged to compare credit cards and to take advantage of a wide range of interest free credit cards that are available. Switching balances to interest free credit cards and undertaking careful research online to compare credit cards could save you hundreds of pounds, experts say.

Credit card rate hikes mean higher payments

This recent data found that an increase in the average card rate means that if you made the minimum repayment each month on a debt of £5,000 you would pay a total of £11,372 overall.  In February 2006 (when rates were at their lowest point) you would have paid £9,012.

Lenders have increased rates on purchases, balance transfer and reward credit cards over recent months due to the continuing problems with the economy. Fears over job losses and increasing bad debts on credit cards have led to many credit card providers increasing their rates.

However, if you compare credit cards there are still many great deals to be found. Interest free credit cards offer a remarkable 18.9 per cent discount on the average UK credit card rate and could save you a significant sum.

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People considering having plastic surgery are facing a major decision. Unlike a new hairstyle or outfit, plastic surgery is designed to be life-changing. It is also quite expensive. For most people contemplating plastic surgery, finding the money to pay for it is one of the toughest hurdles, but credit cards could help.

Ideally, you should set aside money to save up for plastic surgery. That way you won’t have to worry about interest, payments, and late fees. Plus, you’ll have time to thoroughly think through your decision. What’s more, if you save up beforehand, you’re less likely to consider having additional surgeries that you may not have thought of before because you won’t have the money to pay for them.

Many people do, however, take out loans for plastic surgery.

Those with good credit can often get 0% loans with terms of about a year. Some people use 0% purchase cards to pay for their plastic surgery – as long as they are vigilant about paying off the debt before the 0% offer runs out, they’ll avoid interest charges.

The use of credit cards for cosmetic surgery is increasing and some plastic surgery chains are even pairing up with banks to offer 0% credit cards specifically for paying for plastic surgery.

One example is the BMI Healthcare card, not to be confused with the BMI airline credit card. This card offers interest free credit for 12 months for all new cosmetic surgery procedures booked by June 2011. Credit limits of up to £20,000 are available, though the highest limits are only offered to those with adequate income and excellent credit history.

A strong opponent to the pitching of credit cards to pay for plastic surgery is Fazel Fatah, president of the British Association of Aesthetic Plastic Surgeons, or BAAPS. In an interview with The Guardian recently, he said, “The only time people should take a loan to fund an operation is if their quality of life is so impeded by their body image that they can’t function to 100% capacity.”

On yet another side of the issue is plastic surgery clinic chain Transform, which offers 12-month interest-free loans for plastic surgery costing £500 to £10,000. Transform says that loan deals will help stop people from using credit cards or going abroad for cheaper plastic surgery.

The most important thing to consider in all this is the motivation for getting plastic surgery and whether taking on additional debt to fund surgery will compound problems rather than solve them. One thing that all sides in the plastic surgery debate agree on is that the surgery should never be undertaken without thorough research and certainty that it is the best choice.

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If you have ever used your credit card to pay for goods or services online, you will probably have paid a credit card surcharge. Whether you have booked low cost flights, cinema tickets or even paid your council tax online, the chances are you will have paid a fee for using your credit card.

These charges have prompted the consumer watchdog Which? to launch a ‘super complaint’ in order that the Office of Fair Trading conducts an investigation into these fees.

Here’s our guide to how to cut your credit card fees:

Companies profiting on credit card fees

Prashant Vaze, head of fair markets at Consumer Focus, recently told the Daily Telegraph:  “Consumers are fed up with paying these surcharges. Often they have no other option, especially for internet transactions where there is no alternative to using cards. The worst offenders even ask for surcharges on a per person basis.”

The consumer champion Which? believes that consumers are paying ‘hundreds of millions of pounds’ each year in excessive credit card fees.

Interest on credit cards

High interest rates are another reason consumers are paying high card fees. So, borrowers have been urged to research the best credit cards for balance transfers and to move their credit card balance to another provider.

With a wide range of 0% credit cards on the market, there is healthy competition for the consumer. Heading online to research the best credit cards for balance transfers can save you hundreds of pounds every year, and moving your borrowing to 0% credit cards can help you avoid substantial credit card fees.

The last word comes from the chief executive of Which?, Peter Vicary-Smith. He said: “There’s simply no justification for excessive card charges – paying by card should cost the consumer the same amount that it costs the retailer. Companies shouldn’t be using card processing costs as an excuse for boosting their profits.”

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The New Year has started out with a few very good credit card offers, especially for those with good to excellent credit histories. A forecast by Santander noted that Brits could transfer more than £2.8 billion in 2011, with the average transfer being just over £1,000. This is down from the peak transfer rate of £2,290 at the end of 2008.

Millions of people have twigged to the benefits of switching to 0% balance transfer cards as a positive step toward managing their finances. But it is important to differentiate between 0% balance transfer cards and 0% purchase cards. Only rarely do you get both in the same card, and when you do, the 0% period may be different for balance transfers and purchases.

In most cases, using a 0% balance transfer card should be limited to balance transfers only, because interest rates on purchases average over 16%, and there is usually a much shorter 0% period for purchases when the card is aimed at people looking to make use of an interest-free balance transfer offer.

The Barclaycard Platinum with Balance Transfer credit card currently has the longest 0% transfer offer at 18 months (subject to a 2.9% admin fee). Plus, if you are transferring £3,000 or more to your new Barclaycard between now and the 28th February 2011, you will receive £20 off the admin fee you pay.

If you want a 0% purchase card, compare credit cards based on purchases.

The Tesco Clubcard Credit Card currently has the longest 0% purchase deal, at 13 months. After that, the representative APR goes to 16.9%. The Barclaycard Platinum Card offers 0% purchases for 12 months, plus reward points, while existing NatWest and RBS current account holders can get 0% purchases for 13 months with the Classic Card.

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The spring is a great time to consider transferring your credit card balance. With lots of interest free credit cards on offer, as banks compete for your business, you can end up saving hundreds of pounds by switching to the best balance transfer credit cards.

However, if you are transferring your credit card balance, it is vital that you avoid these three common mistakes.

1. Using your balance transfer credit cards to buy goods

Always remember that a 0% or low interest rate balance transfer deal means that the interest on your balance will be low. However, it doesn’t mean that the interest on your purchases will be low.  In fact, it may be the case that your purchases are charged at a much higher interest rate.

Even though your card payments are now allocated to the highest interest rate first, it is worth trying to keep your cards separate. Use one card for balance transfers and one for purchases.

2. Ignoring switching fees

Most credit cards charge a fee when you transfer a balance – often around 2.5 to 3% of the total transferred balance. So, make sure that you take any fees and charges into account when you compare credit cards.

If you expect to be able to repay your total balance in the near future, you could actually save money by staying with your existing credit card than paying fees and charges to a new card provider.

3. Not making your balance transfer immediately

The low interest period on balance transfer credit cards typically begins from the date your application is approved (and sometimes companies give you just a 60-day window to do a balance transfer), not the date you transfer the balance. So, if you delay in actually transferring your balance from one card to another, you will miss out on part of your interest free period.

When you make your application, many companies will let you specify any balance you wish to transfer to their interest free credit cards. Always do this as it maximises the benefit you receive from the promotional rate.

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