Save Money On Your Credit Cards
Top tips to save money on your credit card bill:
1. Don’t withdraw cash using your credit card. If you use your credit card to withdraw cash, you will be charged interest at a massive rate! You will be hit with a cash with
drawal fee, which can range between 1.5% to 3.9% and is charged from the day you make it.
2. If you use your credit card abroad your provider will add foreign usage charge which can be up to 3%. You’ll also be charged a withdrawal fee. So if you do plan to use your credit card abroad, then it’s a good idea to take out a credit card that doesn’t include a foreign usage charge.
3. Always pay your bills on time. If, for some reason, you pay late, go over your limit or one of your direct debits is unpaid then you’re likely to be charged by your provider.
4. If you spend regularly, then cash back credit cards are great as long as you pay your credit card off in full. Cash back credit cards give a cash reward calculated as a percentage of spend, or loyalty points. These can be redeemed for high-street or restaurant vouchers. Some rewards credit cards will also offer other benefits such as free travel insurance, free flights and discounts on holidays.
5. You don’t have to take out Payment Protection Insurance (PPI). Many credit cards will offer PPI, which covers a percentage of your bill should you be unable to work as a result of sickness, an accident or redundancy. PPI, however can be expensive, so think about how much it would cost you, and how much money you could be wasting. You are not obliged to take out PPI, so make sure it suits your circumstances.
6. Beware: 0% on spend credit cards are great for a big purchase, as long as you can pay back in full. This allows you to spread the cost of your purchase without worrying that your debt will grow. If you are switching to a 0% interest card ideally do it save yourself money rather than clearing one card down so that you can then use it for further spending.
7. Don’t use a 0% balance transfer credit card for regular spending. Most 0% balance transfer credit cards order their repayments and will always pay off your most expensive transactions last. So if you don’t want to be hit with a hefty charge, it’s best to avoid any purchases on a 0% balance transfer credit card.
8. If you can’t pay back your credit card balance in full when the 0% balance transfer deals run out, then get a lifetime balance transfer deal. In the current financial times you may not be able to switch to another 0% balance transfer deal and will be hit with a hefty interest rate hike up to at least 13.9%.
9. Don’t just make the minimum re-payments each month! While paying only the minimum repayment each month sounds cheap, it can leave you in debt for years and years! Minimum credit card repayments are designed to make your debt last longer, so always try to clear your debt as quickly as possible.
10. Earn interest! If you’re planning on making a large purchase of several thousand pounds, why not pay for it using a 0% on purchases credit card, and get up to 12 months interest free credit, and then put the money you were going to use in a high interest savings account! Earning you interest on your money for 12 months! Just remember to pay off your credit card before the 0% interest free period ends.
