There are many reasons why getting a credit card could help take your financial life to the next level.
But first, remember you always need to think carefully before getting a credit card, and ensure you plan to use it responsibly. Here are some tips to help you stay on top of your credit card repayments and avoid interest. If you keep doing this, it could help improve your credit rating.
Curve’s essential tips:
- Only use your credit card for cash withdrawals in an emergency.
- Don’t go over your credit limit.
- Always ensure you pay off your balance in full each month.
Here are 8 reasons why getting a credit card could work in your favour:
- Hotel Reservations – With bank cards, it’s not always guaranteed that the payment will go through. Also some hotels ask you to leave credit card details as a form of security.
- Your Money is Safer – It’s not everyday you find a tenner on the ground tax-free. But when we lose money, the feeling can be quite the opposite. If you ever lose your credit card, you’re usually not liable for anything spent after you’ve lost it. But remember to be quick in reporting it lost.
- Rewards – Close your eyes and imagine yourself on a beach being paid to use your credit card. Wonderful, isn’t it? This could be a real reality. Many credit card companies give you money or points for spending with them. Your bank card and physical money doesn’t do this but your credit card might. Quick trip to St Tropez? Don’t mind if we do.
- Build your consumer credit file – A great consumer credit file means great approval when it’s time to buy a house or a car and it doesn’t stop there, it also means fantastic interest rates. When you use your credit card sensibly, the world’s your oyster.
- Better than a loan – With the right credit card, you can potentially get offers where purchases and borrowing have 0% interest. No loan will ever off give you such a great deal.
- Overseas exchange rates – There are many credit card providers that won’t charge you extra when you spend on them whilst abroad. The exchange rates on a card can be better than what you’re offered if you change cash.
- Balance transfers are an option – When your balance is high and you don’t want to add to the cost of your credit card, enquire about a balance transfer. You could go from paying off the balance plus a high interest rate to just the balance. Talk about bargain lending.
- You can pay the minimum – While it’s always best to pay more than the minimum amount, it’s great to know that you don’t have to pay off everything in one go if you need the extra cash.
Check out this quick definition list for some of the most common credit card terms:
|APR||APR stands for annual percentage rate. It is the cost per year of borrowing money on a given credit card. The amount depends on the credit card’s interest rate and any other fees from that provider.|
|Interest Rate||The percentage of borrowed amount that is due per month or yer.|
|Credit Rating (or Score)||Your credit rating is a score based on your financial history. When you apply for a credit card, your rating is considered. You can improve your credit rating by using a credit card responsibly.|
|Credit Limit||The maximum amount you can borrow for a certain period. (e.g. a month.)|
|Balance Transfer||Moving existing debt from one credit card provider to another.|
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