Using your Credit Card
Always use your credit card sensibly. If you want to borrow, check that your credit card is the most effective way for what you have in mind. A credit card can give your finances flexibility but longer–term debt can be more expensive compared to the alternatives, such as a personal loan. It is common sense that if you can’t afford to repay it then don’t spend it. Credit is not “free money”.
As with all your finances you should work out a budget and stick to it. When making purchases shop around for the best deal. Ask yourself if you can afford the repayments before you make a purchase. Do NOT use your credit card to buy goods you can’t afford or to fund a lifestyle that is beyond your means.
If you are making big purchases then remember, a credit card can be a good way to manage short–term borrowing, but for longer–term borrowing you should consider whether an alternative form of borrowing, such as a personal loan, might be better.
Think very carefully before withdrawing cash on one credit card to pay off another. Do not use one credit card to pay off another on a regular basis as, in reality, you are not paying off any of your debt at all. Seek advice if you are having trouble paying your credit card bills. Click here for advice if you are having trouble with your debt.
Lastly, look after your credit cards and keep your PIN safe. These are the basics.
