Guide to credit cards
Useful information on credit cards
Icon expand 1. Try to avoid using your card to withdraw cash
The interest rate is likely to be higher than if you use it to purchase goods.
Icon expand 2. Use your card for purchases over £100
If you have received unsatisfactory goods and services, or the supplier goes out of business, you can approach your credit card company for help, as they are jointly liable under the Consumer Credit Act.
Icon expand 3. Don't build up a wallet or purse full of credit cards
Pick one that offers good value and stick with it. It's much easier to budget this way. Know the APR on all of your cards and pay off the most expensive first.
Icon expand 4. Pay more than the minimum payment every month
Otherwise your balance will take a long time to go down. Just because your credit limit is £3,000 doesn't mean that you have to maintain a balance at that level.
Icon expand 5. Set up a Direct Debit
To make regular monthly payments to your credit card. That way you will not be liable for late payment charges. You can still make extra payments whenever you want.
Icon expand 6. Don't miss a monthly payment
Even if you can only afford to pay the minimum payment, this is still much better for your credit score than missing a payment entirely.