Play your credit cards right

Banks love issuing credit cards because they make a healthy profit from people who don't understand how they work. In order to lure people in, they offer a range of incentives such as 0% interest and cashback. But with a little know-how, you can turn the tables and even make a profit on your credit card spending.

Use multiple cards

If you're transferring a balance to a 0% credit card you can enjoy over a year's worth of interest-free credit - one of the best deals is currently Virgin Money with 15 months. But many cards that offer attractive 0% balance transfer deals also offer a short period of 0% on purchases for, say, three months. Whatever you do, don't spend on these cards!

When you make a repayment, the credit card provider will offset it against the part of your balance that attracts the lowest interest rate (i.e. the 0% balance transfer). This means any purchases you make will cost you interest, typically in the region of 15% to 20% a year, until you've paid off all the balance you've transferred.

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