Most of us need to use a credit card sooner or later but how many of us have taken the time to work out what's the cheapest way to maintain our credit cards, how do we avoid credit card fees that we shouldn't be paying? Here's some credit card tips to avoid paying too much for the privilege of using your credit card.
Choosing the right credit card
The first thing we all need to do is choose the right credit card for our financial circumstances. Incentives such as free flights because of all the frequent flyer points on offer sound great? But if you're not going to spend a lot of money on your credit card then all those frequent flyer points on offer are never going to be claimed. That simply isn't the card for you. Going to college or university is a dream and a necessity for many people. But it is not so easy financially. There are specifically for this purpose to help fund education.
So, we need to work out how often we are going to use our credit card and how much will we be spending on our credit card. Now we can narrow down the credit card options available to us.
How to take advantage of credit card features
The main feature associated with the vast majority of credit cards is the 'up to 55 days free interest' on any purchases made.
This is one feature that we should all be able to take advantage of even if our payday doesn't coincide with the due date on our statement. How do we do this if we don't have any money in our bank account and the due date on my statement is about to arrive?
Very easily. We can apply for a second credit card. A low interest that we use for emergencies to make sure that we can always make our payment on time. The money we save in not getting charged interest will offset any fees involved with our cash advance to make the payment until our payday arrives.
Having trouble paying off my credit card
If you are having difficulty paying off your credit card then it might be time to enquire about a balance transfer. Banks want your business so they now offer customers the opportunity to transfer an existing debit balance to them and the bonus for you is that many of them offer you this service without charging you any interest on the amount you owe.
That means that when you make your monthly repayment, the whole amount will come off your debt and it won't seem like your just paying the interest.
Be sure to shop around with financial institutions offering varying terms and conditions. Some banks and building society's will offer an interest free term for the life of your outstanding debt while others will offer you an interest free term for the first six months.
If you are interested in a balance transfer credit card then please visit the credit card comparison chart to find the best terms available for you.
Using your credit card at ATM machines
It's not always convenient but try to only use your credit card at your own bank automatic teller machines. By using another financial institutions ATM machine, you will be charged for the service when using your own bank machine is free of charge.