Cashback credit cards easier to manage

By UK CreditCards.com

Cashback credit cards are the most manageable products from providers offering incentives, say experts.

Jill Papworth, a personal finance journalist, wrote in the Guardian that credit card firms are increasingly putting forward rewards for cardholders.

Reward credit cards can be used in different ways, such as through earning redeemable points and straightforward cashback payments.

Points can be redeemed against various purchases like cars, flights or holidays, but Ms Papworth said they can be "tricky" to manage.

"Cashback cards are arguably the easiest to get to grips with," she explained. "They tell you what you'll earn as a percentage of your spending, they pay you the money in a lump sum once a year and they leave you free to spend the cash as you want."

A report in the Daily Telegraph suggested that requirements for cardholders differ and that cashback credit cards are ideal for "savvy spenders."

Credit card holders get more protection

By UK CreditCards.com

A new code that aims to improve protection for people with credit cards and other loan instruments has come into effect.

The Lending Code has been jointly developed by the Lending Standards Board, the British Bankers' Association, the Building Societies Association and The UK Cards Association.

The new rules came into effect on November 1, and are intended to determine relationships between lenders and customers and ensure the latter receive help and support when needed. Particular emphasis has been placed on credit assessments, the use of credit reference agencies and debt collection.

Robert Skinner, chief executive of the Lending Standards Board, said: "The Lending Code sets out what it means to be a responsible lender covering both credit assessment and the support that will be available if things go wrong."

He added: "It will be followed by all significant providers of credit products who currently subscribe to the [now expired] Banking Codes."