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With credit cards now, there are so many providers that it’s almost impossible to pick the right one. There’s likely to be some kind of offer with many, such as free gifts and discounts. Make sure you shop around to find the best deal for you.
There used to be a time when credit cards were shunned. But nowadays they can make perfect sense, especially when you need to pay a large upfront cost for something. This can typically be the case when anything goes wrong around the home, such as your boiler.
Credit card debt affects many people around the country who end up stuck in a continuous financial circle of trying to pay off what’s owed. If you want a credit card it’s important you understand the responsibility that comes with it.
To start with, you need to compare credit cards and get the best one for you. Credit card rates will vary, so this is a great place to begin. Some providers will offer a 0% interest for the first 12-24 months which is pretty handy. Just make sure not to miss your payments.
Also be aware of having too many credit cards, especially if you want to get on the property ladder later down the line. Credit cards can be a red flag for mortgage providers and could cause you some problems.
Switching your credit card balance
If you already have a credit card then you may want to know about the little tricks that’ll help you save quite a bit of money. This is known as the balance transfer game, but make sure you know what you’re doing when switching credit cards.
Effectively, the idea is to transfer your credit balance to another card that offers 0% interest for a certain period. So, when you get your first card it’ll come with 0% interest for say, the first 12 months. Once this time has expired, if you still haven’t paid off the debt, transfer your balance to another card offering 0% and cancel the original card.
You can continue to do this as much as you want, thereby avoid interest rates on the money you’ve borrowed and saving quite a lot in the process. Just ensure you know when the 0% deal ends and give yourself plenty of time to set up new accounts.
Another thing to look out for is balance transfer fee charges, because you could end up paying 3% on the balance you wish to transfer. Some will offer free transfers and even if a charge applies, it could still be a lot cheaper than the pending interest rates.