From VIP treatment to protection when you spend: the surprising things your credit card can do
It’s 50 years since the first credit card was launched. To celebrate here are some of the great things you can now do with one.
Today marks the 50th anniversary of the first ever credit card, which was launched by Barclaycard on 29 June 1966.
Within 12 months of the unveiling over a million people in the UK had signed up for the card, which could be used to make purchases of up to £25.
Prior to its launch, cash and cheques were the main methods of payment in the UK.
Since its introduction the use of the credit card has seen significant growth with 31 million packing one and monthly spend thought to exceed £15 billion according to the UK Cards Association.
Not everyone wants to celebrate the innovation of this product though. Some see credit cards as things that purely exist to get people into debt.
However, if used properly a credit card can be a great tool to have in your wallet. So we’ve decided to mark the 50th anniversary of the launch by taking a look at the ways your credit card can help you with your finances.
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1. They offer protection
One of the great features of credit cards is that they offer protection when you spend on them.
Section 75 of the Consumer Credit Act affords you legal rights when you pay for goods costing £100 or more.
It states that if you order goods or services costing between £100 and £30,000, in the UK or overseas, and pay even a £1 deposit using your credit card, your provider will be jointly responsible if the goods fail to arrive, are damaged or faulty or otherwise unfit for purpose.
This means you can claim compensation and get your money back either from the merchant or your credit card provider when things go wrong.
2. They can let you multi-task
All-in-one credit cards can save you a lot of hassle by allowing you to use them for more than one purpose.
These deals combine offers on one card, allowing you to take advantage of things like deals on balance transfers, purchases and money transfers with a single piece of plastic.
Apart from saving space in your wallet these cards also save you from having to apply for two or more deals and going through more than one credit check, which looks a lot better on your credit record.
While these deals can come in a variety of combinations, typically cards that offer deals on 0% balance transfer and purchases are the most competitive. These allow you to spread the cost of a big purchase but also move and freeze the size of existing debt from another card you may want to close down at the same time.
Right now the top deal in this space comes from Barclaycard. The Platinum 25-Month Balance Transfer and Purchase Credit Card offers 25 months 0% on balance transfers (with a 2.5% fee) and 25 months 0% on purchases.
Read: The best all round 0% balance transfers and purchase credit cards for more.
3. You don’t need to carry them to spend
Today you can link your credit card with a smartphone, so you don’t even need to carry it around to make payments when you are out and about at places that have a contactless reader.
Barclaycard were pioneers of contactless payments in the UK and worked with TfL on the first phase of introducing contactless on the underground.
Read How Apple Pay, Beep 'n Go, Get Cash and Paym mean you can leave your wallet at home.
4. They allow you to live like a VIP
Some credit cards can even get you priority access to events.
American Express runs a scheme for its members which allows credit card holders to get access to things like presale tickets and preferred seating just for being a customer.
Get 0% for 25 months on both balance transfers and purchases with Barclaycard
5. They can get you free flights
Air mile credit cards allow you to earn points towards a free flight and some come with a big bonus to help you get started.
The fee-free British Airways American Express Credit Card allows you to collect Avios points. It will pay 3,000 Avios when you spend £500 in the first three months and you can collect one Avios for every £1 spent.
For more on the top cards to use read: the best air mile credit cards.
6. They can make holidays cheaper
Credit cards can even save you money on holiday.
Some providers offer fee-free foreign transactions, which means you don’t get charged a fee when you spend abroad.
This can save you a load of money compared to using your debit card, which can charge up to two fees per transaction.
Read the best credit cards to use on your travels for more.
7. You can make money from them
Credit cards have a bit of a bad reputation for landing you in debt. But if used properly they don’t cost you anything.
In fact, if you’re able to spend and pay back what you earn each month a cashback credit card will actually allow you to MAKE money.
The Santander 123 Credit Card, for example, pays up to 3% cashback. You’ll get 1% on supermarket spends, 2% for purchases in department stores and 3% back on travel costs. The card has a £36 annual fee, but you can earn up to £108 cashback by being strategic with your spending.
For more of the top offers read: The best cashback credit cards.
8. They can be an alternative to a loan
0% purchase credit cards allow you to borrow money for free so essentially act like an interest-free loan.
The top deal at the moment is Sainsbury's Bank Nectar Purchase Credit Card and the Post Office Matched Card which both offer 27 months of interest free borrowing.
Take a look at the best 0% purchase credit cards for a roundup of the best deals in this space.
Get 0% for 25 months on both balance transfers and purchases with Barclaycard
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