If you’re planning on choosing a credit card then you need to make sure you find the right card for your lifestyle. You need to find the best credit card deals for you. Here are 10 simple tips to make sure that you end up with the right card.
1. Pick a credit card that matches your spending habits. If you plan on clearing your balance each month then you should consider a credit card with cashback or loyalty points. If you know that you’ll have difficulty in paying off a card immediately then you should opt for a low interest rate or 0% credit card.
2. Do you travel abroad often? If you do then make sure your credit card firm doesn’t apply overseas charging. Whether you need to take trips abroad for business or you take a few short breaks each year, make sure you don’t end up paying for the privilege.
3. Try to avoid using store cards. Usually the interest rates on these cards are incredibly high and you’ll often get a better deal by using a regular credit card. If you do decide to take advantage of the store discounts then you need to make sure you pay it off immediately or the high interest charges will hurt your pocket.
4. Make sure you at least pay off the minimum repayment off your card. Set up monthly direct debits so you can avoid late payment charges.
5. When possible, try to pay more than the minimum balance. If you just pay the minimum each month it could be years before you ever repay your debts.
6. If you decide to go with a 0% credit card then make sure you make a note in your diary of when your current deal will expire. Either repay your debt or shift the balance onto a new 0% card. If you don’t you will find yourself paying interest.
7. If you can’t repay your debt or you won’t have time to switch a card again then go for a credit card with a low rate for the life of the balance. This could be around 4% and 5%.
8. If decide to transfer debt onto a new card then make sure you don’t spend on it. Credit cards prioritise the debts you repay and so you'll be more likely to have to pay much higher interest rates on any new purchases.
9. Make sure you aren’t leaving yourself open to fraud. Always check your credit card statements. You must check through each statement thoroughly. For further protection and peace of mind you could use a credit referencing company such as Experian. If you suspect fraud has taken place then contact your credit card company immediately.
10. Try to keep a eye on your credit card spending. If you have to put regular expenses such as food and utilities on your credit card then it might be time to review your financial situation and make some cut backs.
