How you Can Get The Best Out Of A Credit Card

| December 14, 2016 | 0 Comments

There are hundreds of different credit cards out there, all offering slightly different variations and percentages. Of course, you need to compare these and find out which is right for you, but once you’ve got your credit card, what then? There are specific ways to use your credit card which can help you improve your credit rating and your wider life, here are some to get your started.

Stay In Control

Credit cards can be better than loans because you have direct control over how much you’re spending, however, you need to check how much you’re spending on a regular basis. The best way to do this is by using an app. I’m sure you use one for your mobile banking and debit account, so why not for your credit account. They can make repayments easy and allow you an easy way of checking exactly what you’ve spent and how much you have left, giving you the means to stay in control.

Balance Transfer

One of the most irksome parts of a credit card is the amount of interest you have to pay on all purchases. If you do your homework and credit comparison, you’ll see that you can get some with 0% interest for the first year or so. This means that if you’re hefting some credit card debt on a card with interest you can switch the balance to a 0% card and happily pay the debt off with no interest. It also means you can purchase something and pay it off over a year with 0% interest.

Analyse What You Need The Card For And Exploit The Rewards

For example if you fly all the time it makes sense to use a credit card that can reward your miles. A great flight card is the premier bank mastercard can be applied for here. If you’re clever you can really make the most of your card. The same applies to cashback, many cards offer up to 5% of cashback on all purchases made in an initial period, meaning if you have anything big to buy it makes sense to use your card as you get 5% back. If you do a lot of grocery shopping then it makes sense to use a credit card offered by a certain brand or store’s bank. These usually give you great rewards for using the credit card in their own stores, an example can be seen with M&S, who give a point for every pound spent in store.

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Use Them To Build Your Credit Rating

If you’re young they can be a great way to build up a credit rating before trying to get a mortgage or finance on a car. If you make small purchases and pay them off straight away or right before the end of the month then your rating is going to slowly crawl up, setting you up well for the rest of your life. They can also be a great way to repair a broken credit rating, do the same, and your credit rating will gradually come good once more.

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Category: Credit Cards

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