Credit cards are an important part of how we pay for things these days, and there are ways in which you can really take advantage of them.
We all need them from time to time, so why not make sure you make the most of them and get the best deal possible.
There is a range of ways in which you can do this, with the 10 ways to select and use a credit card below among the best.
First and foremost you should think carefully about the card you want and when selecting a potential card you should understand everything about it from reward features to credit limits and discounts.
There are dozens of options available so research, research, research is the key.
Benefit From Sign Up Offers
When signing up for a new credit card, many will give you an offer as a welcome. This can range and even include giving you a cash bonus after a number of months. Some of the best credit card bonus offers to offer up to $500, while many others will offer extra points which you can later turn into dining vouchers or air miles.
The likes of Capital One, Chase Sapphire and Bank of America all regularly have great offers for new customers, so they’re well worth checking out.
Earn While You Spend
If you are offered reward points every time you spend, use it.
They’re there to be taken advantage of, so pay for day-to-day goods and services using your credit card. In some cases, you may even find cards team up with retail chains and restaurants to offer bonus points or discounts.
In the long run, you’ll pick up some brilliant discounts, gift vouchers and if you’re a big spender even the likes of cars and holidays.
Claim Your Points
What many people do is collect points but in fact, never use them. As well as your points you’ll find other benefits offered to cardholders and you should make the most of them. Don’t let them pass you by and make a point of claiming them, whether that be by ringing the card company up to get them applied or by claiming online.
In terms of points building up. Once they’re at a good level which can be useful to you, use them.
Pay In Full
If you’re going to make the most of your credit cards, you’ll ensure you pay your bills in full each month. If you end up paying the minimum balance you’ll find you end up being charged heavily in interest. This can make it more and more difficult to pay.
In this case, you aren’t benefitting from a credit card at all, but rather finding yourself in a bigger hole as ultimately all you will be doing is paying interest and actually very little of your card.
Benefit From Balance Transfers
If you take out a credit card offering 0% interest over a set period of time. If the time comes and you haven’t paid off your card, you should consider transferring your balance to another card in which has a 0% offer on.
This way you can keep paying off your bill and make the most of paying no interest on the balance. You may be required to pay a charge for the transfer itself, but following on from that on a month-to-month basis you won’t face charges until that promotional period runs out. In that case, you could transfer a balance once more.
Use It To Protect Purchases
Big purchases are always worth placing on a credit card, not just because you can pay the sum off in stages, but also because it adds an extra layer of protection to them.
Section 170 of the Fair Credit Billing Act helps customers fight any problems and will allow swift chargeback. Credit card companies generally do what they can to help you, mainly due to the competitive nature of the market and the need to provide the very best service.
This is particularly useful on purchases such as holidays when airlines and travel agents go bust. It can save you a real fortune and give you a refund much quicker than you would through a debit card, which can be a long and frustrating process.