That big bad term ‘credit card’ gives me the heebie-jeebies even just typing it. For so long they’ve been embraced as a convenience in an increasingly commodified world. But are they really worth it? How can we get maximum benefits out of them with minimum costs?
PREVENTION
Don’t be so credit card happy. It’s easy to get lost in a mindless routine of flipping over your CC for daily purchases. Use a debit card for more control over your finances, linking your own purchases to your own money.
LOOK OUTSIDE CC COMPANIES
Building societies, credit unions and independent brokers usually offer competitive rates. It is useful to browse the options available to you to maximize the benefits and to customize a credit card plan that suits and rewards you.
INTEREST-FREE DAYS
If you have strong affiliations to your credit card, and the thought of life without it is unfathomable, learn to use it with ‘interest-free’ days to get the most out of it and avoid accruing bank fees. Try to pay the majority of your expenses of these days and pay your monthly CC off in full using only one of the free transactions to optimize usage and saving on fees.
KEEP ON TOP OF THOSE REPAYMENTS
Daunted by paying anything more than the minimum repayment? Try it. You may be surprised at how much debt you avoid by paying more than the minimum and avoiding added interest and fluctuating rates.
REPAYMENT OPTIONS
Good with repayments? Choose a credit card that rewards you for paying it off efficiently. Rather than using a credit card that fluctuates rates, choose the 0% balance transfer offer and be happy that the dent in your pocket disappears more quickly.
BALANCE CHECKS
Revert to the phone, the Internet or ATMs to regularly check your balances and avoid going over the limit. Maxing out the CC is an easy thing to do and the banks can make a fortune from penalties arising from this.
MULTIPLE CARDS
For some, even the thought of more than one credit card can result in stressful body compulsions. However some may enjoy the benefits of using multiple credit cards by choosing which ones to use based on the lower interest rate offered at the time. While this can get complicated and involves keeping three eyes on your daily bank affairs, it CAN work and save you money at the end of the day!
With a bit more research, you can retrain your brain and eager hand to think twice about which card to play. Information is readily available online, so browse the banks, reassess your accounts and you may just find you’re usually carrying an ace up your sleeve.
