Credit Cards can be a great way to spend money. They can offer interest-free credit, time to pay and a great element of consumer protection if you spend over £100.All of these tips are equally important to make sure you get the best out of your credit cards so I’ve labelled them all with a 1! Happy, but careful,spending.  

1. Look for a 0% balance transfer deal and transfer existing cards until the deal runs out. Repeat this for as long as you can! Check to see whether the interest free deal applies to new purchases as well as the balance youhave transferred.

1. If you can’tget a 0% deal then check out the APR on the card you use. The higher the APR the more interest you will pay on any outstanding balance. Lok for the card that offers the lowest possible APR, rememberering to also check out what penalties are likely to be added for any late payments.

1. Remember that Store Cards and Credit Cards are different. Store cards can only be used within the group that issues them while Credit Cards can be used much more widely. Store cards can be very expenseive so only use them if you qualify for some special deal or if you can afford to pay off the balance before Interest starts to kick in.

1. Don’t use your Credit Card to take a cash advance from a hole in the wall machine. The interest rate is likely to be be even higher than if you use it to purchase goods.

1. Check out the interest free periond between buying goods and interest starting to become due and try to clear your balance before that happens.

1. Use your credit card for any purchase over £100. That way the credit card company is reponsible for the quality of the product as well as the retialer and any peroblems can be taken back to them for resolution.

1. Don’t build up a wallet or purse full of Credit Cards. Pick one that offers good value and stick with it. It’s much easier to budget this way.

1. If your credit card company writes to you to tell you they have increased your credit limit then you are allowed to write back to say that you are happy with the limit you already have. It’s not a licence to let you go out and spend a fortune that you don’t have.

1. Pay more then the minimum payment every month otherwise your balance will never go down. Just because your credit limit is £3000 doesn’t mean that you have to maintain a balalnce at that level.

1.  Set up a direct debit to make your regulalr monthly payments to your credit card. That way you will never get hit for late payment charges. If you want to make extra payments then you can still do so at other times.

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