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Top 10 credit card tips
Pick a credit card - or cards - according to your spending habits. If you clear your balance each month, look for a cashback card or one with loyalty points. If you won't be able to pay it off straightaway, opt for a low or 0% interest rate card.
Before travelling abroad, check the charges your credit card firm will make. You may find it makes sense to take out a card that doesn't apply an overseas loading charge.
Steer clear of store cards: the interest rates are extortionate so you'll get better value from an ordinary credit card. Many retailers will offer you 10% or 20% off your purchases if you take out a store card - it's fine to take advantage of these offers just make sure you pay it off immediately otherwise the high interest charges will quickly wipe out your savings.
Set up monthly direct debits to pay at least the minimum repayment off your card. This avoids late payment charges.
Always pay more than the minimum balance - otherwise it could take 25 years to repay a £2,000 debt.
If you have a 0% card make a note in your diary when this rate is due to expire - if you haven't repaid your debt or shifted it onto another card in time, you'll start paying interest.
If you can't repay the debt in that time and think you won't get round to switching again go for a card with a low rate for the life of the balance (rates vary between 4% and 5%).
If you do transfer debt onto a new card, don't spend on it. Credit cards prioritise the debts you repay and so you'll more than likely be stung by a higher rate of interest on new purchases.
Don't leave yourself open to fraud - always check statements thoroughly and check your credit record with a credit referencing company like Experian. If you suspect foul play contact your card issuer immediately.
Keep a watch on your credit card spending - if you find yourself in the situation where you need to put regular expenses like bills and food on your credit card, then it's time to make cut backs and review your financial situation.
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