With so many cards offering tempting zero-rate introductory periods for up to 15 months, the usual worry that the interest charges on a credit card will cost you a small fortune are a moot point. To counter the rise and rise of 0% on purchases credit cards, banks have been offering some pretty tempting deals on loans recently, and the battle between the two seems to be hotting up. So which is better?

Personal loans – tried and tested

Currently, you’ll pay around 6% for the cheapest personal loans, providing of course that you have a spotless credit record. To tempt in new customers, loan providers have been having a bit of a fire sale, slashing rates to encourage new borrowers to take advantage of a fixed rate term. Sainsbury’s continued move into the financial sector has led the way, with 1-3 year loans coming in at a very attractive 5.9%. If you borrow £7,500 over two years with the supermarket giant, the total cost of the interest would be just £457.

But – and it’s a big but – the less you borrow, the less attractive the rates become. Drop down to a loan of £5,000 and the interest rate goes up to 7.6%. If your credit rating is anything other than ‘excellent’, you could be looking at 17% interest charges, and that could up your interest payment to £859.

Credit cards – little and often?

Credit card providers are in the middle of a bumper give-away bonanza for new clients. If you were thinking of taking out a loan to pay off existing credit card debt – stop for a minute. Have you thought about a balance transfer credit card? A 22-month interest-free period from Halifax or Barclaycard carries a transfer fee of just 3.5% and 2.9% respectively, and that’s a one-off payment too. After that, you’re free to clear as much of the outstanding balance as possible, with none of your payments being gobbled up in interest charges for the best part of two years.

New purchase credit card deals are also plentiful at the moment, with cards from Nationwide, Barclaycard, Halifax, NatWest and others all offering 0% interest for varying amounts of time. So doing a quick ‘back of the envelope’ calculation may indicate that if you’re looking to borrow a small amount over a short period of time, then the credit cards could come out on top.

There’s even a clever hybrid mix of the two called a credit card loan, read our guide to learn more.

But, just like all forms of borrowing, there is a downside to this smorgasbord of temptation. If you do use a credit card to balance your budget, you need to be extremely disciplined about it. There’s no point paying off the absolute monthly minimum and being left with a debt that will start to accrue interest at the end of it. You also need to have an excellent credit rating to be able to take full advantage of the all these offers from the lenders. Anything less and you’re looking at high interest rates from the start.

So the question of which is better, a loan or a credit card, can only be answered with a slightly lacklustre ‘it depends’. A loan is a locked in agreement that will help you resist the urge to spend more than you can afford to pay back. A credit card is a little more flexible and, consequently, a little more tempting. If you can’t resist the urge to splurge, then your best short term bet will probably be a 0% on purchases cards.

Credit cards or loans – which is better? is a post from: Cardchoices

It’s one of the first times that the Internet has been actively ‘policed’ by outside agencies, and has effectively stopped millions of unsuspecting victims suffering from identity theft. SOCA says that credit card and bank account details were available for as little as £2. The operation has resulted in numerous arrests across the world and the closure of 36 websites.

This blatant trade in personal details has been going on for at least two years, and during that time the personal details of more than 2½ million credit cards were recovered. This has prevented possible fraud that could have amounted to a colossal half a billion pounds. The operation was described by Lee Miles, the head of SOCA’s Cyber-Crime Unit, as “on an industrial scale”.

Going after the brains behind the credit card phishing

For this particular operation, SOCA and their counterparts around the world including the FBI used a different tactic. Rather than going after the ‘front-end fraudsters’, they targeted the hackers and code-writers. These were the people who sent out the phishing emails that lured many people into giving their details up to the criminal gangs, and the code-writers who enabled websites to cope with selling colossal amounts of data. “I’d rather arrest 10 code writers than 1,000 front-end fraudsters,” commented Lee Miles.

SOCA is calling on ISPs to stop allowing individuals to register websites anonymously, as this is often one of the first steps in setting up an illegal or criminal website.

Miles went on to say

“What we are trying to do is influence the ISP industry to introduce more secure systems so they do know who is registering these sites, for them to have a more comprehensive customer database, and do more aimed at preventing criminals buying existing redundant websites and using them for criminal ends.”

But Mr Miles and his colleagues at SOCA could face an uphill battle when it comes to getting the co-operation of some ISPs. Service providers, while applauding the capture of criminals that could have cost the banking system hundreds of millions of pounds, feel uneasy about being ‘policed’ in this way and are reluctant to agree to anything that could be seen as an infringement on their freedoms.

Others argue that to prevent Cyber-Crime (widely recognised as one of the biggest potential threats facing consumers, governments and business) from exploding, some form of control has to be put in place.

The co-operation of law enforcement agencies in this instance shows that the Internet can be intelligently controlled to an extent. But it is going to need the co-operation of more than just the ‘Feds’ if people are to be reassured that their credit card details and other personal information are truly safe out on the internet.

Are your credit card details for sale to the highest bidder? is a post from: Cardchoices

Annual sales of the cards are worth more than £4billion in the UK, with just under half used as personal gifts and the rest given as business treats or bonuses for a job well done. But approximately £250million of cash donated on these these cards is going unused every year, a wastage figure of 6%. The problem seems to be the short expiry date on many cards. After the initial giving process they get shoved in a drawer and forgotten about until being re-discovered – quite literally ‘a day late and a dollar short’.

Andrew Johnson, director general of the UK Gift Card and Voucher Association explained that for retailers, gift cards and vouchers are a liability on the financial books of many organisations. So it makes good financial sense to remove that liability at some point, hence the short expiry dates. However, many shops do extend expiry dates on gift cards every time they are used, to try and encourage foot-fall into their establishments.

Business bonuses

In 2011, £2billion worth of gift cards were sold in retail stores, but the larger share (£2.1billion) was bought by businesses to give to staff as rewards or as part of a promotion campaign. The problem is that, like any other form of moneyless transaction, there is some small print to take into consideration. In the case of gift cards, the small print usually includes an expiry date of 12 months after the initial purchase or two years after the card was last used.

A fair chunk of that unclaimed £250million is taken up with unused ‘change’ on the card. For example, if a £20 gift card is used to purchase an item for £17.99, it will leave £2.01 on the card. These small amounts are often disregarded by the recipients of the card but, just like interest charges on credit cards, over the year and across the gift card spectrum they add up to a colossal amount of money.

Bringing in the customers

Gift cards are favoured by high street retailers (who are having a particularly hard time of things lately) because they encourage people who might not normally visit their establishment to cross the threshold into their store. Once inside, it is estimated that customers who spend a gift card in store will go on to spend a further 40% of the value in hard cash as well. But going into a store only to find that the gift card has expired is a sure-fire way to discourage them from making any kind of purchase at all.

So how can you make the most of your gift card? Well, the simple advice, as with anything, is to check the small print and, if there is no information on the expiry date of the card, contact the retailer direct and ask or you could be short changed!

Never look a gift card in the mouth… is a post from: Cardchoices

According to an analysis by accountants PricewaterhouseCoopers (PwC) nearly 400,000 middle-class professionals and white collar workers will lose hundreds of pounds a year as the worst hit group under the Coalition’s tax reforms.

But hey, it’s the start of the holiday season, the kids are on Easter break, and we’re a third of the way through the year already. So if the dour times and austerity measures have left you longing for a break away, where can you go to make the most of what little spare cash you have?

Europe

Its common knowledge that the Eurozone has been going through an even worse time than the UK, and the crisis has left the Euro practically on its knees. Many observers are wondering how much longer the Euro can continue to be a viable currency on the world markets, but at this point in time failure is not an option.

But while this might be causing the mother of all headaches for financiers, it’s a boom time for holidaymakers. The Euro is nearly 4% weaker than it was a year ago, so you’re getting around €1.20 to the pound. This makes a Euro worth just £0.82p, so if you can find a flight (several countries are facing walk-outs from airline staff over the Easter break) you should find some great value across Europe.

Turkey

This popular destination has had its own worries recently, leaving the Turkish Lira 9% weaker than last year. Combine that with relatively cheap flights and some good last minute deals on hotels, and Turkey is pushing towards the top of the list for cash-savvy holidaymakers.

Croatia

Fancy something a little more adventurous? If you’re into caving and diving, why not combine the two with a ‘spelunking’ holiday in Croatia? Financially, this European backwater is going through a bit of a renaissance and is fast becoming a popular destination with those weary of package deals on the Spanish Costas.

Financially, Croatia offers a great return and your pound will go much further here than it will in some of the more fashionable traditional destinations.

Hungary

Eastern Europe is really pulling in the holidaymakers in 2012, and the beautiful countryside of Hungary is no exception. The exchange rate is currently approximately 348 Hungarian Forints to a pound, which is an 11% improvement on this time last year. This is a great destination to choose if you’re looking for a relaxing spa holiday.

Affordable enough to put on your credit card

So the search for real value is great news for venues like these as well as places like the Czech Republic, Egypt, and Morocco as consumers broaden their horizons beyond the usual Spanish and Greek package deals. Clearly the flexibility of your credit card means you could still get an overseas break before the Easter holidays are are over.

As well as offering the chance to spread the cost of your holiday over several pay cheques, if you’re taking advantage of an interest-free on purchases period it can mean your well earned holiday is truly affordable. You’ll also get the protection your credit card offers you in the event of an insolvency or problem with your travel firm or airline.

While travellers’ cheques are still a popular way to carry cash around on holiday, be aware that in some of the more remote locations they may be unwilling or unable to take them. In instances like this it pays to have a generic card such as a VISA or MasterCard as back-up, just in case you’re left with a bill and no way to pay it.

However watch out for foreign exchange surcharges if you’re spending or shopping abroad. Many of the most competitive credit cards issued in the UK make punitive charges if you use your card to pay in any currency apart from the one its issued in. To avoid these charges, take a look at our overseas credit card deals. Here we feature cards that won’t cost you the earth to use them when you’re travelling.

Before using your credit card outside the UK check out our comprehensive guide on ‘Using your credit card abroad‘.

Want an Easter break? Where can you get the best value for money? is a post from: Cardchoices

Officially banks and building societies are supposed to receive customers ISA funds by the HMRC deadline of midnight on the 5th April in order for their deposits to qualify as part of this year’s allowance, but it ‘s been confirmed that some are closing their doors early to some savers.

Savers who miss the 5th April tax-year deadline effectively lose the ability to invest this tax year’s allowance in an ISA and get interest or growth tax-free.

Someone who had maximised their ISA allowances and made full deposits every year since ISA’s were first introduced in 1999 would now have some £40,000 shielded from the taxman (plus any interest or capital growth in shares or other investments).

If you’re looking to make a deposit in a new ISA, or are planning to top up an existing ISA before the deadline, you should quickly contact your ISA provider and check how much actual time you have left.

Here’s an update on institutions who are closing their books shortly or ahead of the deadline:-

Nationwide

Popular amongst savers because of its e-ISA with 3.1 % return, savers can apply online only up to 2nd April, but in-branch applications for Nationwide ISA’s are open up until 5pm on April 5th.

Compare Nationwide ISA’s here on their website

Santander

Due (it says) to high demand Santander which offers several top deals including a 3.3 per cent instant access has brought forward the cut-off date for their standard ISA to 4th April and 1st April for phone applications.

ISA savers can apply online until 1st April. Existing Santander customers who have money in other Santander accounts have until 5th April to apply online.

Santander will accept applications at its High Street branches until the close of business on 5th April.

More details on Santander ISA’s on their website

Halifax (HBOS)

Halifax’s 3 per cent ISA Saver Online consistently features in positive reviews.

Halifax is accepting online applications until midnight on 5 April, provided funds are transferred into the account by that time.

Halifax branches will be open until 7pm on 5 April accepting applications, and new applications for ISAs are accepted over the telephone til midday on the same day.

More details on Halifax website about their ISA’s

Cheshire Building Society (part of Nationwide)

The Cheshire dominates the 18-month ISA accounts tables with a 4% rate, the same as it’s instant access account. The deadline for new applications is 2nd April, with cheques to be received by 5th April.

Cheshire Building Society ISA Guide

NatWest RBS

The NatWest’s ISA pays 3% on balances less than £10,000, going up to 3.5% if you transfer in an old ISA and increase the balance up to £30,000.

Existing NatWest online banking customers have until 5th April to apply. New customers have already missed the recommended postal deadline of 26th March. Both new and existing customers were given a 26th March deadline for telephone applications.

In branch applications can be accepted up to close of business on 5th April.

More detail on the NatWest website ISA Guide

AA Savings

AA Savings bank officially stopped accepting 2011/12 ISA cash applications for its postal access ISA on 29th March.

However, AA Savings which is owned by HBOS says their deal continues into the new tax-year for 2012-13 deposits but is reverting to an online managed version on 4th April.

More info on the AA Access Cash ISA on the AA website

Saga

Saga which only offers its products to the over 50′s, does currently offer the best 1 year rate at 3.6 per cent. But it’s stopping taking applications for its top-paying 3.6% one-year deal on 29th March.

All monies must be received by 5th April. Applications to deposit funds for next year’s allowance can be made from today (2nd April) onwards.

More info on the ISA saver account on Saga’s website

URGENT warning, banks closing ISA deadline early! is a post from: Cardchoices

Despite the fact that the majority of people now carry less than £20 in cash on them at any time and we all rely on simply handing over our credit cards when it’s time to pay at the checkout, there are still some businesses who cannot or will not take card payments.

With the average spend in small and medium sized shops standing at around £64, it seems almost unthinkable that this situation could happen in 2012. But it’s the retailers who are losing out. More than 16% of consumers said that they had simply walked out of a shop without buying anything at all because the retailer didn’t accept card payments.

Another 22% have been forced to go hunting for an ATM machine to get the required cash out of their accounts, while 7% have ‘put items back’ so that they would have enough cash on them to make a purchase.

Walking around money

The study, carried out by YouGov also reveals some interesting trends about the cash in people’s pockets these days. Whereas years ago it would be the norm to go to the bank and get out a wad of ‘walking around money’ to go shopping with, now only 12% of consumers carry more than £50 in their purse or wallet. Nearly two thirds (62%) carry £20 or less, while 48% are lucky if they can rustle up £15 or less in their wallet.

Compare that to the 93% of the public who carry a debit or credit card, and it’s clear that social trends for carrying plastic instead of cash are changing. More than half of those asked in the survey believed that in the future (by 2035) cash would become obsolete and everything would be paid for on credit or debit cards.

Some less honest retailers refuse to accept cards because of the ensuing and undeniable paper trial and financial records. These make it hard for them to under-declare takings, forcing them to pay the correct levels of income tax and VAT.

Credit cards help small traders compete

There’s also the socio-economic factors of accepting credit and debit card payments to consider for SMEs. Customers are more likely to make large purchases with small or local retailers if they can pay for their goods by card, rather than by cash.

This helps smaller traders to compete with their larger rivals. With the cost to the retailer of accepting a debit or credit card payment set to be capped, the argument that it ‘costs too much’ is now null and void.

Savvy consumers like paying for big ticket items (between £100 and £30,000) with their credit cards because of the protection it affords them against the merchant going out of business or ending up with faulty goods. The availability of prepaid credit cards, means that now even those who are without a job or have a poor credit history can still have a credit card.

Ultimately, consumers will vote with their feet (and their credit cards) and simply go to a retailer that does accept card payments. Or they’ll head for online shops with all the convenience of one-click payment methods. The days of the cash register on the counter may be well and truly numbered, and for businesses that don’t move with the times, the writing is on the wall.

Consumers show frustration with retailers who dont take credit cards is a post from: Cardchoices

It appears that fraudsters are no longer targeting credit cards and are switching back to more ‘old school’ scams such as cheque and phone fraud.

Credit card fraud fell by some 7% in 2011 to £341million, the lowest amount in 10 years and part of a three-year decrease of nearly 45%, according to figures released by Financial Fraud Action UK. (You can read their full summary here on the FFA UK website).

Online banking fraud also fell by 24% to £35.4million in 2011, despite a massive increase in phishing attempts. It seems that account holders have finally got the message and are no longer responding to attempts to garner their details illegally. This may go some way to convince sceptics who are still nervous about the security of online banking, and that it is actually a safe way to manage your financial affairs.

Meanwhile, cheque fraud went up by 17% (does anyone actually still use cheques any more? Apparently so…) and real old style telephone banking fraud went up by approximately 30%, with victims being convinced by a friendly voice at the other end of the phone to give up their PIN number and banking details.

Stay vigilant, the credit card fraudsters are still out there somewhere

But the police have warned that the drop in credit card fraud should not encourage customers to be complacent. While card identity theft dropped by 41% last year and fraud from skimmed or cloned cards fell by 24%, fraudulent transactions on lost or stolen credit cards crept up by 13%.

The number of cards going missing in the post also accounted for a rise of 34% in card fraud, so perhaps the real weak link in the method of physical delivery. Maybe the credit card issuers should look to use secure courier services.

Read our comprehensive guide on how to Avoid Credit Card Fraud.

New technology has also made it much harder for fraudsters to scam credit cards. The updating of chip and PIN cards has had a significant effect in reducing credit card fraud, as has the sharing of information between financial institutions and the police. Cards with ‘updated integrated circuit card verification value’ are nothing new, but they have played a key role in cutting back on the amount of credit card fraud perpetrated in the UK since 2008.

The introduction of ‘dynamic data authentication’ cards that make each transaction unique has also made it much more difficult for fraudsters to simply copy details and added to the general decline in fraud.

But there is still a need for credit card users to be vigilant, and to immediately report anything that seems suspicious. ‘Skimmers’ are still being found in ATM machines across the country, although users are now much more aware of what to look out for and to protect their PIN number from prying eyes.

The number of opportunities left open for fraudsters are shrinking as the public becomes much more conscious of the potential risks. This is the third year in a row that credit card fraud has fallen, and with continued development of smart technology, a predisposition for customers to be naturally suspicious and better fraud protection by the lenders, 2012 could make that drop in fraud figures four years in a row.

Credit card fraud at its lowest in 10 years is a post from: Cardchoices

New rates – no discussion!

Customers are understandably quick to point out that this huge jump in borrowing costs is in complete contradiction to Virgin Money’s much lauded advertising campaign, where they claimed to be improving service and provide value for their customers. The interest rate hike is anything but, and customers have been confronted with a “take it or leave it” attitude from the bank when they’ve called to complain.

The increased rates don’t apply to all Virgin Money’s 2.5 million customers just to a select 20,000 who’s accounts have recently been subject to a risk review.

Rates on uncleared purchase balances on Virgin credit cards (which are currently underwritten by MBNA) have rocketed from 16.8% to a distinctly unfriendly 24.9%. Average rates from other credit card providers are currently 18.9%.

Interest rates on existing balance transfers (i.e. on balances out of promotional offer periods) have also shot up from 18.9% to a staggering 27.9%.

The move comes just days after mortgage lenders including the Halifax hit cash-strapped customers with a rise in standard variable rates. It also comes hot on the heels of Sir Richard’s own promise to “bring fresh ideas and an injection of new competition” into banking as a whole.

Is this the Northern Rock connection?

Some pundits feel that the rate hike on Virgin Money’s credit cards is an attempt to raise funds to pay back its purchase of Northern Rock – a claim strenuously denied by Virgin.

The takeover cost Virgin £747 million with another £50 million due over the next six months. Instead, Virgin claim that the rate hike is part of a regular review they carry out of the risk levels within their credit card portfolio. They also state that their ‘take it or leave it’ approach is standard industry practice.

Whilst the rate increase may comply with the letter of the law (the Consumer Credit Directive allows credit card issuers to increase rates once in each 6 month period) it’s left a bitter taste in the mouths of thousands of credit card customers, particularly those who have recently transferred over to Virgin based on their previously competitive interest rates.

And it could be a dark warning of things to come too. Industry experts believe that Virgin is merely one of the first credit card provider to make the move to higher interest rates, and that other providers will quickly follow suit as they re-asses the risks posed by customers on their books that have weak credit scores or a damaged credit history.

Whilst its easy to sympathise with customers who are affected by the Virgin rate rise, this type of action is likely to become commonplace in the future. Credit card issuers are taking a much more robust line on managing risk and reward in their lending books.

They’re also being much more choosy about taking on new customers. The subject of risk is now most card issuer’s primary concern and this is leading to only the very most credit worthy consumers being offered the market leading promotional rates.

Virgin under fire with credit card rate hike is a post from: Cardchoices

The Managing Director of the Financial Services Authority (FSA), Martin Wheatley used the presentation of the report as an opportunity to put further pressure on the concept of free banking, saying that it’s was an ‘outmoded concept’ and ‘doesn’t really work’.

The Senior Regulator refused to be drawn on whether he was in favour of an end to free banking – stating he thought it was too emotive an issue to discuss further. Wheatley said that “the reality is that if you are providing services free it is being subsidised from somewhere else”.

Its a fact of life that the costs of opening and maintaining free current accounts is being met by profits from other areas of banking business like loans and credit cards.

Poor and vulnerable members of society are also helping to fund free banking by being more likely to be hit with account ‘out-of-order’ fees and penalties for unauthorised borrowing, which bear no relation to the actual costs banks incur for items like returned cheques or direct debits.

Wheatley, who will head up the new Financial Conduct Authority when it’s spun out of the FSA in 2013, warned that “the industry has to rebuild trust. What we keep finding is that actually the industry is selling very expensive products in a very aggressive way and that just destroys trust”.

The Government is in the process of shaking up the UK banking industry and the legislation it operates under following the 2007 banking crisis, and in the wake of 25 years of mis-selling which has recently cost the banks (many of which are now majority owned by the tax payer) £15 billion in compensation.

The most recent scandal involved the wrongful selling of Payment Protection Insurance, or PPI, to millions of borrowers who bought loans and credit cards.

Wheatley went on to say

“Consumers rely on financial firms and their products to provide them with vital services – literally the means to run their lives.

“They need to be able to trust that the products they buy work for them and that they’re getting a fair deal.”

Statistics show that the number of free bank accounts on offer has plummeted in recent years. Many banks now charge up to £25 a month for even a basic current account.

The downsides of free banking have also been highlighted by the statutory consumer champion, Consumer Focus. Michael O’Connor, Consumer Focus’s chief executive underlined the fact that the ‘perception’ of free banking also doesn’t really help the consumer because it stifles competition.

Mr O’Connor said

“It is great not to have to pay for a bank account, but is not necessarily good for the consumer in the bigger scheme of things.

“Bank accounts are paid for by people who make mistakes and go overdrawn – they are often the least well-off and the least well-informed.”

As ever, what the consumer needs is transparency. It’s very difficult to compare the true cost of switching banks, or of a particular current account if its costs are hidden in other associated products.

Although it may be billed by the bank as “free”, its’ also very difficult for the consumer to identify the potential costs they could incur running the account over, say a 2 or 3 year period, or to understand who or what is meeting the inevitable cost of running that account.

FSA chief says free banking outmoded & doesn’t work! is a post from: Cardchoices

But consumer champion Which? claims that you’d have to be a maths professor to be able to understand the tangled web of overdraft charges that the high street banks are currently putting on their current accounts.

The way that overdraft fees are quoted makes them difficult to compare because some lenders quote charges by the day, some by the event and some by the month. These frustratingly complicated charging structures mean that, depending which bank you’re with, you could end up paying anything from £10 up to a whopping £50 for going into the red for just two days and making one payment.

Add on top of that the charges for letters, or returned payments and going a couple of pounds over your limit could mean you end up paying nearly £80 on top, pushing you even further into debt.

If you have a tendency to cross that line into an unauthorised overdraft at the end of the month before the pay cheque hits your account, there are some banks that you might want to avoid. Top of the list for fees on short-term overdrafts is surprisingly the Nationwide’s FlexAccount, which charges £50 for a two-day unauthorised overdraft (its close cousin the Nationwide credit card offers one of the fairest credit card fees structures around). If you want to keep those excess charges to a minimum then the Halifax Reward Account charges a more manageable £10.

Longer-term overdrafts mean higher charges

For those who find themselves on the wrong side of the credit/debit line for longer, the charges can really start to become worrying. If you go into an unauthorised overdraft for 10 days and make nine payments from the account, you could be paying over £100 in penalty fees. HSBC and First Direct both charge an eye-watering £125, while a more reasonable £44 is what you’ll pay Barclays if you go into the red for 10 days.

If you’re really struggling to get your finances under control and are in the red for 21 days (making 12 payments from your account), you could be facing charges of up to £150 from HSBC and First Direct. Out of the most popular current accounts on the high street, only Barclays and Lloyds TSB Classic and Classic Plus charge under £100 for unauthorised 21-day overdrafts.

Avoid the charges

Whilst we all occasionally miscalculate the amount of money left in our account, advice from the experts is if you know you’re running close to your limit, keep a very close eye on every single transaction.

If you think you might go into the red, call the bank before it happens. By arranging an approved overdraft facility you can often reduce those penalty fees down to almost nothing. While you may have to pay a small fee for arranging an overdraft, it does mean that you’re protected from having to pay a fee every time you slip over the line.

Also consider if spreading some of the cost onto a credit card is a better option. Continually going into an unauthorised overdraft situation could mean it impacts on your credit record, and using a credit card to cover the occasional bill could keep you on the right side of the line and make managing your finances easier.

How expensive is your overdraft? is a post from: Cardchoices