Most of us have a credit card but few of us actually make these handy pieces of plastic work as effectively for our own benefit as we could. The fact is that, managed correctly, credit cards can provide a whole raft of benefits above and beyond the convenience of credit spending and extra protection when ordering online.
However, for most people, the reality is credit-card debt brought about by poor financial management. As soon as you find yourself with credit-card debt, that piece of plastic is working for the provider and not for you. In such instances, it is best to look for balance-transfer cards at zero per cent to pay off the balance, get organized and start again.
If you have good credit and pay off your balance each month, however, some of these cards are well worth investigating. Let’s take a closer look at the cards which can work for you.
If you have an existing balance there are many credit cards with zero-per-cent interest applied for a fixed term, or a low interest level for the life of that balance. Compare these to the standard interest rates for outstanding credit balances of 25% and more and you can see the benefit. These are ideal for people with existing balances that they want to clear and also for people who want to buy a large item and spread the payment out over a period of time. For some, this approach can be cheaper than taking out a personal loan. You can even transfer the balance over to a new zero or low interest rate credit card when the promotional period ends and continue to benefit. Just remember that there are usually fees involved for the transfer of a balance, usually around 3% of the outstanding amount. It’s also very important not to spend on these credit cards. However, used well and carefully, the benefits to the customer can be tremendous.
Cash Back and Reward Cards
These are varied but some cards offer points on groceries and store shopping, some offer Air miles and others offer cash back, which can be as much as 5% for an introductory period on any purchases that you make. You might even find that additional benefits are included, such as free travel insurance or mobile phone insurance. Other card providers will guarantee any products bought with their card, which can provide extra piece of mind. Do your research and look around for the best offers and deals and always remember to read the small print. You might even be able to achieve even more savings if you buy online via a cashback site using a cash back card. It all adds up over time.
These are excellent if you have struggled with credit in the past and you need to improve your rating. You simply need to take out a credit-repair card, use it for your spending and make sure that you make your repayments on time, without fail, every month. This will rapidly repair your credit rating and help you to become eligible for better credit deals in the future.
Find the Right Cards
There are hundreds of credit cards on the market and the best deals change regularly. Keep an eye on the top performers and compare the features and benefits on offer at Money Super Market. You’ll be able to make your choice and then apply directly online via the link.
Article intended for entertainment purposes only. Article provided by MoneySupermarket.com