Credit Cards Top Tips

1. 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 expensive so only use them if you qualify for some special deal or if you can afford to pay off the balance before the interest starts to be applied.
2. Try to avoid using credit cards for cash as the interest rate is likely to be higher than if you use it to purchase goods.
3. Check out the interest free period between buying goods and interest starting to become due and try to clear your balance before that happens.
4. Use your credit card for any purchase over £100. If you have received unsatisfactory goods and services paid for with your credit card, or the supplier goes out of business, then you can also approach your credit card company for help, as they are jointly liable under the terms of the Consumer Credit Act.
5. 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.
6. 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. The increased limit is not an excuse to go out and spend a fortune that you don't have.
7. Pay more than the minimum payment every month otherwise your balance will take a long time to go down. Just because your credit limit is £3000 doesn't mean that you have to maintain a balance at that level.
8. Set up a direct debit to make your regular monthly payments to your credit card. That way you will not be liable for late payment charges. If you want to make extra payments then you can still do so at other times.

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