Using Credit Cards Wisely
Credit cards offer a lot of benefits, from convenience to increased security. But if you’re not careful, credit cards can also become a financial burden.
The Office for National Statistics (ONS) has detailed inflation is at its highest in the UK for 30 years. With the increase in inflation on living costs and the ease of using credit, people are turning to it more.
If you use credit cards more you will also need to be able to use them more effectively.
Here are some tips on how to use credit cards wisely:
- Keep an eye on your monthly statement. Whether you use mobile apps, online banking or paper statements always make sure you know the extent of your spending and have a plan to repay the amounts utilised.
- Pay your balance in full each month. This will help you avoid interest charges and keep your debt under control.
- Pay over the minimum. If you cant afford the full balance then you might want to pay just over the minimum payment to reduce future interest charges.
- Don’t skip payments. Missing a payment can damage your credit score and make it harder to get approved for future loans or credit cards.
- Don’t have an abundance of cards. Having too many can be a sign of financial instability and make it difficult to keep track of your spending. Stick to one or two cards that you use regularly.
- Use cards wisely by shopping around for the best rewards programs and benefits. With responsible card use, you can enjoy the many benefits that credit cards have to offer while staying in control of your finances.
- Keeping an eye on your credit score. It’s important to keep track of your credit score because the way that you manage it can impact all aspects in life.
