How to Take Advantage of Credit Cards

Credit cards are something that people can really take advantage of. There are some people which do not do this though and they end up paying a lot of money for the cards. However, there is a method of using them, where we can get interest free credit and not pay for the cards. You will need a fee free card and there are plenty of these available. Then you have to use the card very carefully.

Pay off Full Balance Each Month

It is a good idea to make sure that you pay off the full balance of your card each month. When you get the statement each month, it will let you know how much you have spent on the card and then there will be some options. You will be able to repay everything and pay no interest and there will be a deadline for this. You need to make sure that you repay it by this date and then you will have borrowed the money, from the time that you bought the items until the bill is paid and you will not have paid anything. So, this means you may have had up to a month’s worth of interest free credit.

Set up Direct Debit

It is really important that you remember to pay this every single month and the best way to do this is to set up a direct debit to do so. This means that you will never forget the payment as it will go out automatically. It is best to set this up so that it leaves your account just after you have been paid. Then it will be more likely that the money will be available for you to be able to make the payment. The card issuer will be more than happy to make the direct debit on a date that you can manage the payment best on.

Track Spending

If you want to be able to repay your credit card in full it is important to make sure that you do not spend more on it than you can afford to repay. Therefore, it is very wise to make sure that you track your spending carefully and then you will be able to make sure that you do not spend more than you can afford. You may also need to check your household finances and calculate how much you will be able to afford so that you can set a spending budget on the card. This will ensure that you will always have enough money available to repay the card and also have enough money left to cover the cost of all of your other bills as well.

So, if you always repay the card in full, it means that you will never pay any interest. You will be able to take advantage of the fact that you can get interest free credit. You will also be able to take advantage of the other benefits of credit cards as well. This is the convenience of being able to use the cards in shops instead of cash which is quicker than paying by cash. You also have some free insurance cover with credit cards which means that you will be able to claim back money if you buy something online and it never arrives or is not as described and the seller refuses to help you. This can give you a lot more confidence with online purchasing. Credit cards also tend to be more secure when buying online compared with debit cards. This means that if you do experience fraud in any way it can be easier to make sure that you do not have money stolen from you.