Tips to know about credit cards

A little bit of research can allow you extra cash in your budget.

10:19 04 May 2013

Reduced public spending could leave many people trying to bridge the gap left behind, and turning to credit cards to help them stay within their budgets and pay all their bills. Here are a few ways to ensure that you get the best deal from among the plethora of credit cards available with tempting introductory offers.

 

What should you look at first when searching for credit cards?

 

• Interest rate—people may try to tell you that this is not the most important part of a credit card, but it is most assuredly one of the most important factors to consider, although comparison of competing offers is essential.

 

• Annual fee—find out if the credit cards charge an annual fee and how it is charged. Some will charge it once per year, while other companies will break it into quarterly or monthly amounts.

 

• Introductory term—finds out the length of the introductory term, and what conditions must be met in order to retain the offer. Sometimes a late payment can negate your eligibility for such an offer.

 

• Balance transfers—there’s no reason to avoid transferring a balance, especially if you’re trying to get out of debt. Even transferring smaller portions at a time will allow you to eventually pay off larger debts much faster as long as you have a good interest rate, and low balance transfer fees.

 

How can you use credit cards to help your budget?

 

This can be a sticky situation depending on the status of your budget. Each person’s situation is unique, so there is not one easy solution, but here are a few suggestions that could help you through some rough spots.

 

• Avoid using for groceries and other similar expenses
• Reduce interest by transferring balances
• Use to pay recurring payments if it reduces the minimum amount due