Most people understand that credit cards can be a flexible way to access extra funds when needed. But credit cards can also cause financial problems if not well managed.
Having a credit card can give you access to fund which you can then repay later.
Also, it is important to understand that getting the right credit card could save you money as well.
Choosing the right credit card and using it carefully can end up putting more than a few pounds in your pocket each month – something we could all do with in the current economic climate.
Below are the best five ways to save money with a credit card
1. Carry Out A Balance Transfer
If you’ve got outstanding balances on one or more cards and are paying a hefty interest rate, chances are you’re shelling out more than you need to. Find a card with a lengthy 0% introductory balance transfer and you’ll a little extra breathing space to get your finances in order.
2. Use Your Credit Card Abroad
Credit cards are usually the cheapest way to spend abroad, especially if they’re specialist travel cards. While debit cards can come with whacking fees and cash from the airport usually comes with an unfavourable exchange rate, a good credit card can leave you with cash to spend on the important things.
3. Get Rewarded For Your Spending
If you regularly spend in a certain store, it’s worth looking into whether a cashback credit card could save you money each month. For example, some cards offer a certain percentage of cashback a specific supermarket – meaning you’re effectively getting a discount on everything you spend in that store, as long as you pay off your balance in full at the end of the month.
4. Pay For Holidays And Big Items On Credit Cards
Although you may pay a higher fee for putting those big purchases on your credit card, it may well turn out to be the best thing to do in the long run. This is because credit cards usually offer better protection should things go wrong – for example, if a holiday firm goes bust, you’re more likely to get your money back if you paid with a credit card than if a debit card or cash was used.
5. Remember That Loyalty Is Not Rewarded
Many cards can entice you with great deals on balance transfers and rewards, but once the introductory period is over, they can become pretty expensive borrowing tools. Therefore, find out when your 0% period ends, circle the date in your diary and look at doing a switch to a better deal when the time comes.