Borrow without being hit by high interest rates
If you’re looking to get a credit card for the first time, the sheer range of products and providers can make the process seem a little daunting. While it’s always worth shopping around for a good deal and a preferential interest rate, it’s worth knowing there are ways to completely avoid paying more than you’ve spent. It all depends on how you use your card and how organized you’re able to be with your finances.
If you can manage it, then it’s always worth paying off your bill in full and on time every month to avoid interest rates. Of course, you may not always be able to cover the full amount, but ensure you cover the minimum repayment as missing it all together can cause a blot on your credit file or see you hit with a late payment fee. When you haven’t been able to pay off exactly what you’ve spent the leftover sum will be carried over, plus interest, to the next month. So for this reason it’s always wise to compare credit cards to find the lowest APR and a suitable credit limit, regardless of how you intend to use your card each month.
Savvy borrowers will always read the terms and conditions carefully to avoid being hit by charges and pay their bill in full whenever possible.
Making money from your card
If you find you’re regularly able to meet your credit card repayments and want to make a little extra cash then you could try credit card stoozing. There are a number of step-by-step guides to stoozing available for those who feel organized enough to give it a try, but it’s worth firstly being aware of what it is and how it works.
Firstly, individuals will need to apply for a credit card with 0 per cent interest period and use this for their typical day-to-day spending. In the meantime the money saved can be transferred to a high interest saving account, while they only pay off the minimum amount needed each month. At the end of the interest-free period the savings can be used to pay off the outstanding balance, while a little extra should be left over. While this is a great way to get something for nothing it does require a fair amount of organization and as such should be avoided if you’re not particularly on top of your cash flow.