Credit cards have lots of great uses, they can help spread the cost of a large purchase, and they can also help you earn great rewards if you take advantage of the many reward schemes that are on the market right now. Some people see credit cards in a negative light, these people are wrong. If people choose the right card that suits their needs and use it in the right way then they will always benefit. Here are 10 tips to help you get the most out of your credit card and avoid any unnecessary charges:
If you have outstanding debt then choose a 0% balance transfer card
If you have outstanding debt on either a credit card or an overdraft then if you can find a card that offers you 0% balance transfer deals, you will have found one of the best ways to tackle the debt.
Always pay more than the minimum
If you choose to pay just the minimum amount off your credit card each month then it will have 2 effects; 1) it will extend the time you are in debt and 2) it will drastically increase the amount of interest you will have to pay over time.
If you can, pay your balance off in full every month
Even though you should pay more than the minimum, you should if possible try and pay off the whole balance off your card each month. This is the best way to use your credit card and clear your debts each month. If you choose this method it means that you don’t have to worry about the interest rate that may be charged, you can always take full advantage of any cash back and rewards that will cut your costs.
Only apply for cards that you know you will be accepted for
Remember that when you apply for a credit card they will run a credit search of your credit history, if you apply for a credit card and your application fails then it will have a negative impact on your credit score. So make sure that you do your research and find the best card for you, and the one that you will most likely be accepted for.
Your credit card can improve your credit score
Obviously if you take out too much credit and have too much debt then your credit score will be damaged. But, at the same time, if you have no credit history then it can also be damaging when applying for loans in the future. There are cards out there that are purposely designed for people to build their credit.