How To Use Credit Cards – The Good the Bad the Ugly!
Disclaimer I am not a financial adviser I’m just someone who writes about this for fun.
Most of what I’ve learned is by trial and error and finding tips online.
How to use credit cards to your advantage.
A credit card can be a very useful tool and also a terrible idea. As a teen I was always told doesn’t get a credit card you’ll get into debt and debt is a bad thing.
I remember hearing all these horror stories about people getting into terrible debt with huge amounts of credit and an eye-watering apr! You may have heard some yourself!
From my exposure to credit card dramas, I feel I have learned a lot and I’d like to share what I know with you. Maybe it will help you improve your credit score or choose the right credit card and have a powerful tool at your fingertips!
First steps – check your credit score!
I like to use a clear score for my mine or check your credit file and Experian. (Most are free for the first month but make sure you cancel before incurring any charges.)
The main point of a credit card is to have leverage. Buying something in advance of having the money. Secure payment in case something goes wrong and shopping online (check out section 75 for this.)
increase credit rating to be more eligible for more credit and of course a mortgage.
Which credit card should I get!?
Well, great question the most important thing is what are you going to use it for?
I’d recommend short-term purchases only to avoid high interest. If you need to borrow longer look at a loan.
However, you can get 0% on purchases and balance transfers up to 12 months and 25 months.
Most importantly how to maximise the use of a credit card.
This is determined by your spending habits.
If you spend and shop a lot or maybe you have a business.
Then look for a cashback card or Amex card when buying items 500 or over then you’ll get rewarded with cashback on your purchases.
However, if you’re a frugal friend and don’t spend a lot of money I’d recommend getting a points card with your local Tesco, Asda or Sainsburys.
To be honest two of the best cards I’ve used have been the Sainsbury American Express I was doubling my point which paid for about £100 worth of Christmas food and drink.
The Second card was a 0% Sainsbury’s card which lasted for 25 months and was helpful during the pandemic!
0% cards are great for building up
Credit and not getting into debt.
For those who might not be eligible for a 0% card. Get one that gives you points back and be careful when spending.
Final tip if you have no credit at all and need to start taking a look at loqbox.
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American Express® Platinum Cashback Everyday Credit Card
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