Foreign exchange rates can be costing consumers money according to an Abbey National credit card division survey.
The survey has found that around 38 percent of people would pay in Sterling on their credit card whilst abroad, believing they would not incur exchange costs. This is not the case though since dynamic currency conversion means the transaction is converted to the local currency automatically. It is also often the case that it is the receiving bank that levies the charge, often at quite high rates. Again this is something most people are unaware of according to Abbey National, finding over 60 percent falsely believing this to be the case.
The Abbey National credit card Zero is an exception to this foreign exchange scenario and as such it is hoped that either more consumers will use this particular card or that other credit card providers will follow the Abbey National lead.
An American Express survey has shown that identity theft is more of a worry to people now than many physical attacks.
Over half the people surveyed by American Express worry that they will have their identity used by someone else, with the biggest increase being amongst the 18 to 24 year olds, with the concern up by 8 percent compared with last year. Costing over GBP1.3 billion each year identity theft is a very real crime and as our use of chip and pin cards, the internet and technology increases so do the chances of our personal data being taken.
In reality the risk is relatively low, growing lower still if simple precautions are taken. American Express advise internet users not to provide their details to any sites they do not trust, to shred their documents before disposing of them and to make sure their computers are password protected, and not with either birthday or mothers maiden name, which are by far the most common ones used.
Having a credit card can be a great way to help manage your finances, so long as consumers use the credit card in the correct way. Credit card holders can take advantage of using their card to help protect them when making purchases and budgeting. So long as they have enough money in their bank account to pay off their monthly credit card balance every month, they can help budget your money.It also gives protection to purchasers when using their credit card under the Consumer Credit Act which can be a great advantage.So long as consumers don’t use their credit cards as a source for money if they do not have the money in their bank account to pay off their monthly balance, they can be a great way to manage your money. But if you are not able to pay off your balance every month you could run into debt problems, and you don’t want that. Make sure you can pay off your monthly credit card bill every month. See our credit cards comparison table for the latest offers. Plus, reading our guides and tips pages can offer consumers more detailed information and money saving hints.
