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Credit Cards: How To Use Them
Credit cards can be a very quick way of getting into even more
debt if you do not know how to use them properly. UK debt is now
at an all time high and, excluding mortgages, Credit Cards are
one of the main contributors.
It's a lot easier to get a credit card than it is to get a
mortgage or a loan. So it makes sense that more people own a
credit card. With interest rates that are quite high in relation
to loans and mortgages you can see why the debt can get out of
hand.
In order to get the best value for money out of your credit
card you need to be disciplined in the way you manage your
debt.
Make sure you make the payments every month:
If you cannot pay off the whole amount every month make sure
you pay at least more than the minimum required. This will help
you pay more of the capital off every month. Make sure you take
advantage of the interest free periods in this case.
Don't abuse your credit limit:
A credit limit does not mean free money. Credit Card companies
are happy to raise your limit if they see you pay off your card
regularly. Don't be tempted to use this money it just puts you
further in debt and will take you longer to clear it. Credit Card
companies know that most people will not be able to resist
spending more and you are just helping the big card companies to
make more money.
Check your statements every month:
This is a small but important point. Credit Card companies are
not perfect and often errors are made on your statements. Make
sure all items on your statements are goods and services you have
purchased. If you do notice an error contact your credit card
straight away. Keep an eye on the interest rate you are charged.
If you are on an interest free period make sure you are still not
being charged interest.
Know your rights:
Many people do not know their rights when it comes to using
their credit cards. Did you know that if you buy goods or
services and these are not delivered or are not to the standard
advertised then the Credit Card is liable. If you order a sofa
and the furniture store goes under and you do not receive your
sofa then the Credit Card company has to reimburse you the amount
spent. A little tip: If you are paying for an item and it is to
be delivered at a future date, always use your credit card as it
will be a form of insurance if there is a problem. You can always
pay the amount off when the goods arrive if you had planned to
pay cash.
For more information on your rights visit:
http://www.dti.gov.uk/ccp/topics1/consumer_finance.htm
Grant Marwick is a freelance writer and owner of http://www.only-credit-cards.co.uk
where you will find advice and more articles on Low interest
Credit Cards and advice on Bad
Credit
MORE RESOURCES:
Credit - Google News
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