Getting Your Credit Card Sorted in Time for the Holidays

by : Reno Charlton

With the six-week school holidays looming up around the corner many parents may now be thinking about planning a holiday abroad for the family, although many may decide to opt for a holiday within the UK or simply for a selection of day trips as a result of tighter finances stemming from increased bills and living costs.

For those planning a trip away for the summer it is always useful to have a credit card to fall back on in case of financial emergencies - even if you don't plan to rely on the card you never know when it might come in useful.

If you do plan to get a credit card in time for your trip away then it is important to start looking sooner rather than later. The summer break will be here before you know it, and it is important to look for competitive so that you do not have to pay too much for your borrowing in the event that you do use the credit card.

Also, bear in mind that increased applications at this time of year could result in longer processing times, and you need to make sure that you allow plenty of time so that you get your card in plenty of time for your holidays.

You can use your credit card to either pay for your holiday abroad or just as a back up in case of financial emergencies whilst you are abroad. If you are planning to get a there are a number of things you need to look out for.

Of course the interest rate charged is an important consideration if you plan to spread repayments on your balance, and you may want to opt for a 0% purchase credit card to give you more time to repay any balance without being charged interest.

However, another very important consideration is the amount that you will be charged for foreign transactions and cash withdrawals.

The foreign transaction fees can vary widely from one provider to another, and if you plan to use your credit card regularly whilst abroad then these charges can quickly add up.

Also, bear in mind that whilst you are such a long way from home you may find that you need to make the odd cash withdrawal. Whilst this should be avoided wherever possible you never know when you might need to withdraw cash, so it is a good idea to also compare the cash transactions fees and charges that are applied.

If you plan to get a credit card for use on a UK break or for day trips within the UK then foreign transaction fees are clearly not an issue, as they will not apply. However, charges such as cash transaction fees in the event that you do have to withdraw cash need to be considered, as does the interest rate charged on the card. If you plan to repay the balance in full within the interest free period then you won't have to worry about the interest rate, as you will not be charged any interest, and therefore you can focus more on the benefits of the card.

For example, you could get a rewards based credit card such as a cash back credit card and actually earn something back from the credit card company for using the card.

If, however, you do plan to spread the repayments on any balance that you accrue when using the card for a UK break or day trips then you may want to consider something along the line of a as well, as you can then enjoy a much longer interest free period within which to repay the balance, so you can spread the cost of your summer break.