Be a Credit Card Pro with TotallyMoney's 5 Top Tips
Credit cards are designed to make your life easier, not more complicated. Using them correctly will ensure that you avoid the headaches that can come from out-of-control credit card debt. TotallyMoney’s 5 top tips to keep in control of your credit card finances include:
1. Don’t let your spending spiral out of control
It takes will-power to not spend greater amounts on your credit card each month than you can afford to repay. If you regularly carry forward a balance each month, credit card debts can easily snowball, especially once you begin to pay interest charges on top of the balance. Unless you are using a credit card designed for this purpose - such as a card that offers interest-free purchases as an introductory offer - you can easily end up with a high amount of debt that will accrue more and more interest as time goes by. Compare interest-free purchase credit cards.
2. Avoid unnecessary charges
Your credit card provider will hit you with various charges for misuse of your credit card. You will be penalised for exceeding your credit limit, and late or missed monthly repayments. If you are worried about forgetting your payments, set up a direct debit to repay at least the minimum amount each month to ensure you aren’t penalised; then make additional payments each month.
3. Reduce interest charges
Try to pay more than the minimum monthly repayment each month to avoid paying inflated prices for your purchases. The longer you spend repaying your debts the more interest they will accrue, so minimise interest charges by repaying debts as quickly as possible; If you have existing credit card debts, consider transferring the debts onto a card that offers a lengthy interest-free period on balance transfers. Compare interest-free balance transfer credit cards.
4. Check your statements
Many people do not check their monthly statements to ensure there are no mistakes, overcharges, or failed refunds. It is your responsibility to check that the correct amounts are leaving your account, and to check for suspicious or incorrect activity; report any invalid charges to your credit card provider immediately.
5. Chase the best rate
If you truly want to benefit from using credit cards you should always be on the lookout for a better deal elsewhere. Being loyal to your credit card provider is not in your best interests; be a rate tart and switch often in order to chase the best interest rate options available. Compare best rate credit cards.
It is your responsibility to manage your relationship with credit sensibly. Keep these points in mind and you will remain in control of your finances rather than the other way around. To ensure you consistently get the best deal available use the TotallyMoney online credit card comparison tool to compare every UK credit card.
Please note: this website, and the articles and information within it are based on journalistic research. It does not and should not be construed to constitute financial advice. Any information should be considered in regard to specific circumstances. All tips are followed at your own risk and should be followed up with your own research. For more please refer to our terms and conditions of use.