Do you use a credit card and if so why? Is it to help you spread the costs of payments? Or maybe it is to help build up your credit score. Whatever the reason, there are a range of benefits to putting your purchases on credit card.
Credit cards often come with a bad stigma attached to them when it comes to borrowing money and lending. There are a range reasons why putting it on plastic can be the best choice for you and here’s why:
One of the main advantages to using credit card is that you can spread the cost of a purchase if you can’t afford to pay for it in one go.
Spreading the repayments allows people who struggle to with repayments to afford to pay for it in one go.
You can get credit cards which offer 0% interest and a whole year to pay off your purchases without any incurring interest. Once the 0% offer has ended then you’ll pay an annual percentage rate.
Cut the costs of existing debts
If you owe money on an existing credit card, then you may be able to reduce the cost by transferring it over to a card charging a lower of interest. This is referred to as a balance transfer.
Cardholders who want to transfer a balance to take advantage of a 0% offer, but who also want to use their card to fund large purchases.
To earn cash back
If you pay your credit card off in full each month then a cashback card could be a good idea as you’ll earn money each time you spend on the card. It really depends on what you spend. You can earn cashback at more than 30,000 retailers and then choose to use that money when you enter your pin.
Keep your credit score clean
It doesn’t matter whether you use a credit card, keeping an eye on the market to make sure you’re carrying the most competitive card for you.
By keeping an eye on your credit file and keeping your score as high as possible, you increase your chances of being able to move to new market-leading deals.
Joanna Wilkins is a photography enthusiast and Documentary obsessed blogger. She works as an Executive for PPI Refund who are a claims company that help individuals claim back mis-sold PPI. Her idea of the perfect day would consist of walking her fluffy Border Collie whilst listening to her favorite genre of music- soft rock.