How To Use A Credit Card

Do you own a credit card or are you thinking of signing up for one? Make sure to make an informed decision. Credit cards play a big part in the world of loans and interest and of course a credit card is nothing but a loan with a card attached to it. There are credit cards that need to be repaid every month. This means that the purchases made with the card have to be paid back at the end of the month.

Other credit cards can be seen as a loan on which you make repayments on a monthly basis but you do not have to repay the full amount that you spent in the same month. These credit cards often come with very high interest rates. An interest rate of around 19% is not unusual and the amount of money that you pay extra on interest on a yearly basis can be alarmingly high.

It is wise to compare credit cards properly before you make any decisions on getting one. Comparing cards is not only about interest rates but also about the small print on a credit card contract. The best card to get is one that has to be repaid in full every month. This type of card will stop you from spending more than you can really afford which is a big danger when you are carrying a card.

It is best to make sure that you do not always carry your credit card around with you. Carrying the card in your purse at all times will make it easier to overspend on items that you do not really need in the first place. It is great to use a credit card for something if you really need it of course, but take your time to think about purchases.

Keep your credit card safe at all times. Keep it in a place that only you know about and never let anyone else carry it for you. Check your credit card statements every month. Don’t just put the in a drawer but stay on top of your spending. Make sure that you know your credit rate and keep on top of your repayments. Comparing credit cards is all about knowing what you want and what you can afford.
Compare credit cards So what should you look for when you are comparing credit cards?

Check the interest rates on every card that you may be considering.
Find out if you can make additional repayments to pay the credit loan back quicker.
Find out if your credit card company insures the goods that you purchase automatically.
Don’t be tempted into getting a card based on gifts that you may receive when signing up.
Stay on top of your repayments and don’t spend more than you can afford.
Don’t use your card to buy a holiday if you can’t afford it. You will be repaying the holiday for years after you’ve returned.