If you have the opportunity to decide between UK and US credit cards, you can find that it is a bit of dilemma over which services you should choose to use. However, this article is going to reveal some of the key differences which distinguish UK cards from their American equivalents.
The first thing to note is that in the UK, the Consumer Credit Act of 1974 protects members of the public who use their card for purchases between £100 and £30,000 which are made on their card. Thanks to this law, credit card providers and retailers are jointly responsible if a product doesn’t turn up or is faulty – meaning that there is a better chance of a consumer getting their money back quickly when compared to other methods of payment such as debit cards and cash.
Of course, if you are purchasing a rewards card from America instead of UK, you will also notice that the retailers from which you can redeem points will be different. A popular reward scheme in Britain is Nectar points, which can be used with many of the leading brands there. You shouldn’t fret however, as other hotel reward schemes, such as credit cards from Marriott, can be redeemed in locations around the world.
The UK has also recently discovered the merits of price comparison websites for credit cards, and it could be argued that the market for these services is demanded more in Britain than America. This is in part due to some of the leading brands such as Comparethemarket.com, Gocompare.com and Moneysupermarket.com that allows UK consumers to get advice easily. The culture of doing research on the Internet has also extended to other markets that include insurance.
Even though many of the well-known credit card providers in the US are seen in Britain – such as Visa, MasterCard, American Express and Capital One – are seen in the UK, it is also worthwhile to note that some of the credit card brands which are seen in Britain cannot be found for American consumers easily. Sometimes, going for a card brand that is common in both countries can be beneficial for people who travel frequently between the two, as it could cut foreign transaction fees extensively, and you might be able to have a balance in both US dollars and pound sterling.
There are some similarities between the credit card markets in the two countries also, however. For example, it is easy to find 12-month deals on balance transfers and 0% interest quite easily – no matter whether you are in the US or the UK. Similarly, if you are looking to be rewarded frequently through the use of cash back cards, which reward everyday purchases with discounts that might be rewarded after a 12-month period as a lump sum. If you are trying to ease the burden of everyday purchases and increase the levels of disposable income for the finer things in life, enjoying up to 5% of cash back over an introductory period of up to three months is the great start to using a new card. Unlike in the UK, stateside cash back credit cards also offer up to $100 after making your first purchase, or if you spend up to $500 in three months.
By having a look around for the different contenders on the market, you will be sure to find the best deal for you.
Connor Stephens covers personal finance tips with a global perspective. Connor lives with his family in London and enjoys traveling on the weekend with his two daughters.
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