Many of us have a credit card, but not all of us use it wisely. There are different things that we can do with a credit card which will mean that we can take advantage of it without having to pay for the privilege. It is perfectly within the rules of the card as well.

Always repay the Full Balance – the first thing we need to do is to always repay the balance that we owe in full. If we do not do this, we will be charged interest and this can be pretty expensive. Rates of interest on credit cards can be pretty high and therefore it is a good idea to try to avoid paying it if we can. Therefore, when the statement arrives pay back everything you need to by the date shown. If you need motivation, look at the interest that will be charged if you do not repay and calculate how much would be in a year. It will a significant sum of money and it might help you to see that it would be a good idea to repay the card in full. To make this really easy, you can set up a direct debit, so that the card issuer will take the money form your account each month. You will then not have to remember to do it, which will make things a lot easier. However. You will need to make sure that you keep a track of how much you are spending on the card so that you can be sure that you will have enough money to be able to afford to repay it when the time comes.

Take Advantage of the Security it Provides
A credit card can be good for using when you are shopping online a sit is more secure. Although it does mean that you will be handing over your card number and if someone gets hold of that they could spend money on it, it is more secure than you bank account details. With your credit card you can quickly put a stop on it and the money spent will be refunded to the card. If they get your bank account details they could steal money that is actually yours rather than loaning it on the card and it may not be so easy to get it back. There is also insurance with a credit card, so if you buy something online and it does not turn up or you cannot get a refund even if it is damaged or whatever, you will be able to get the money back through the credit card. Therefore, it can be very handy to have one.

Try a Reward Card
There are credit cards which give you rewards for using them. These can be really great, but only in certain circumstances. The cards can be more expensive than standard cards, so if you pay interest then it is better to stick to a conventional one. They also might encourage some people to buy more things. It is okay to use your card for more things, as long as you are buying the same amount but just using your card to pay, rather than other means such as cash or a debit card. Then you will get more rewards as they tend to be a percentage of what you spend on the card. You will need to monitor it closely though and make sure you will definitely be able to afford the repayment. Keep checking the balance and ensure you keep money back so that you can afford to repay the card.

By Bailly

I really enjoy finance writing because it is something that I know a lot about. I was in a tricky situation and so did lots of research about finance. It really helped me, not only then but ever since and it is really great to be able to have the opportunity to be able to pass on what I have learned to help others. I therefore try to explain different things in the articles that I write and give various tips in the hope that others will be able to make some of the changes that I did in order to get their finances in order.

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