Standard Credit Cards

Not too long ago if you wanted a credit card you had a simple choice: MasterCard, Visacard, Diner’s Club or Amex – Silver or Gold. Today everyone issues a credit card and offers all sorts of promotions; so it has become a minefield trying to work out what standard credit cards are. But, working on the premise that standard credit cards are considered the most typical type of credit card you can get, then a if the credit card has the following attributes you likely have a standard credit card:

• the credit card debt is unsecured, i.e. you do not have to give any security over the debt that you create on the card
• 0% interest on the transfer of balance from a previous credit card issuer
• credit limit of up to £15,000
• annual fees, late payment fees and interest on balance after the 0% interest free promotion period has finished (6-9 months)
• between 35 – 64 days interest free credit on any items you purchase (depending on when you buy them, when you receive a statement and when you are required to pay the bill)
• rewards program that can include cash back programs, airmile programs or some other card loyalty reward
• fraud guarantee, including internet fraud guarantee and identity theft guarantee, which means you’ll likely only be liable for the first £50 of expenses on your card
• emergency 24-hour card replacement if you lose your credit card or have the card stolen
• a price match guarantee, which guarantees the price you pay for goods will be the cheapest you can find, or a refund (subject to a 30-60-90 day limit)
• purchase protection, which means any purchases you make are insured from breakage and loss
• extended warranty, which means the products you buy on your credit card have a warranty period longer than usually offered to cash-buyers
• emergency accident and travel insurance for when you travel anywhere

In addition to all of the above, you will also be required to undertake both a check of your credit history and a credit scoring process that will determine whether or not you a sufficiently creditworthy enough to approve the card. If you have a bad credit history record, you can still obtain a credit card but it will not be consider one of the standard credit cards.

More information:

• Definition of credit cards from APACS - Information from APACS, the payment association
• Trust UK - information site for buying online