Using Your New Credit Card
OK, so you’ve got your new credit card and are ready to start spending. Here is TotallyMoney’s guide to using your credit card, to help you save money and remain in control of your credit card finances.
Take advantage of introductory offers
Many credit card providers offer a range of deals that present excellent money-saving potential. These deals usually take the form of introductory offers, and are used by credit card providers to attract new business. However, these deals don’t only offer short-term benefits; when used correctly, they can transform your finances over the long-term. Look for interest-free deals such as 0% interest on balance transfers or interest-free periods on new purchases, or earn something for nothing with a cashback or reward scheme.
Compare the best introductory offers>>
Commit to being a Tart
A rate tart, that is. Become a rate tart and stop throwing away your money on interest charges by switching to a new credit card provider at the end of your introductory offer. Each time your interest free period finishes, find another deal elsewhere and switch; get it right and you could say goodbye to interest charges on your existing debts forever. Show me how>>
Get something for nothing
Take advantage of any reward or loyalty schemes your credit card provider offers as an incentive for spending. Find a card that rewards its users for spending in a manner similar to your own, and reap the rewards – literally. You could earn cashback, high street vouchers, or earn loyalty scheme points, all for doing nothing more than maintaining your usual spending habits. Compare rewards and cashback credit cards >>
Spread your interests
Having a different card for different purposes could save you a lot of headaches – and interest charges – in the long run. Rather than being faithful to a sole credit card, have one card for new purchases, one for balance transfers, and so on. Credit card providers often have different interest rate terms for different charges on a single card, which can result in your being hit with more interest charges than you bargained on. Keeping your cards separate will help avoid this, and more than that, will allow you to take advantage of multiple introductory offers at once. Find a new credit card >>
Expensive cash
Never use your credit card to withdraw cash; common negative payment hierarchy practises mean that you will pay the high interest rate for cash advances until the entire card balance is repaid in full. This means your £50 withdrawal will end up costing a lot more than £50. It’s also a good idea to ensure that the PIN for your credit card is different from that of your current account, to avoid accidentally withdrawing cash from your credit account.
Beat the interest charges
Pay your balance in full each month as much as possible to avoid paying interest on your purchases. If you can’t clear the balance in full, pay as much as possible, as paying only the minimum monthly repayment amount is a costly way to borrow money. Carrying forward a balance each month can easily snowball, resulting in your purchases costing a lot more than you actually paid for them at the time.
Don’t forget the basics
Be sure to make your payments on time each month to avoid being hit with expensive late fees; this may seem an obvious point to make, but it is easy to forget, especially during busy times of the year. It’s a good idea to set up a direct debit for the minimum repayment amount so that this amount at least is paid each month, allowing you to make extra repayments as and when suits you.
A penny saved…
You could be paying unnecessary direct debits or forgotten membership fees and subscriptions without realising it, and wasting your hard-earned money. Check your statements carefully so that you know exactly what money is going out of your account each month. You should also spend a few minutes to check your monthly activity report for mistakes, such as failed refunds or over-charges, and report any suspicious activity to your credit card provider immediately.
Chip and PIN
Protect yourself from fraud by being vigilant whenever using your credit card. When paying in-store with Chip and PIN, shield the keypad when entering your PIN, be aware of those around you and do not let your card out of your sight during the transaction. Do not share your PIN with anyone.
Shop online with care
Online fraud is becoming a big problem in the UK. You can reduce your chances of being targeted by being careful of whom you submit your personal and credit card details to online. When shopping online only use reputable sites, check the URL of the payment section of the site, check for the VeriSign symbol and never divulge personal details in emails.
Keeping these tips in mind will help you enjoy a hassle-free relationship with your credit card. To find the best credit card deals available use the TotallyMoney online credit card comparison service. We compare every UK credit card to help you find the best product for your requirements.
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.