Making The Most Of Your Plastic

For many people credit cards have provided a financial lifeline during the recent financially turbulent months, and many people have found that they have had to turn to their credit cards more and more in order to make ends meet when money it tight. Whilst credit cards can be very convenient and provide ease and speed for consumers they can also result in huge debt levels if they are not used and repaid properly, and therefore you need to be careful and cautious with regards to your credit card in order to make the most of your plastic.

With a credit card consumers can enjoy increased ease, convenience, security, and flexibility, but it is important that you use and repay the card property in order to make the most of your card. For example, wherever possible you should try and repay your credit card balance in full each month, as this way you will not be hit with hefty interest charges yet you can still enjoy the ease, convenience, and speed of making your repayment by card rather than using cash or cheques.

If you have a credit card that charges interest and you cannot transfer the balance onto an interest free card – and cannot afford to repay the balance in full each month – then it is important that you try to pay more than the minimum amount requested by the credit card provider each month. If you make only the minimum repayment the majority of your repayment will go towards interest, and you will find that the debt could take years to clear.

As with any other financial product you want to make sure that the credit card that you are using suits both your needs and your pocket, and with the wide range of cards available these days it is vital that you compare credit cards from different providers in order to get the best deal. You should look at things such as the APR charged, any benefits that come with the card, and the terms and conditions of the credit card.

If you are looking to spread the repayments on your card then you need to ensure that you compare the interest charged on credit cards before you choose. However, if you plan to clear the balance in full each month then you could enjoy the benefits of a rewards based card. As you will not be charged interest because you are clearing the balance you don’t need to compare the APR, and instead can look at what rewards are available.

One thing that you should avoid doing on your credit card is conducting cash transactions, and this includes withdrawing cash on your card, using your card to gamble online, buying gift cards or vouchers with your card, or paying bills on the card. This is because you could otherwise find yourself being hit with hefty fees and interest charges for these types of transaction.