Quantcast
Channel: Take Charge of Your Money » Finance
Viewing all articles
Browse latest Browse all 10

The Things Credit Cards are Best for

0
0

Some people swear by credit cards, others swear at them and stay away. Out of the first category, some people use them wisely and gain a real financial benefit while others use them poorly and end up paying more interest than you have to, possibly even damaging their credit score in the process.

Credit cards are better for some purposes than others. Some of the best ways you could make use of them to enhance your finances instead of hindering them include:

Spread Costs With 0% Only

Sometimes we don’t want to spread the cost of a large purchase because we can’t afford to make it all at once. Sometimes it’s just nicer to pay in instalments rather than hand over all that money at once. The problem is that paying in instalments almost universally inflates the price tag, as it is essentially a loan. This means you can’t spread the cost out of convenience without paying for the privilege, and if you actually can’t afford to pay all at once then you are stuck with paying more. This is where the plethora of 0% offers on the market come into their own. They are a great way to spread the cost without paying any extra in the long run, whether it’s because you need to or just because you want to. Use a comparison site to find the best 0% deals, and see if the lender’s website offers an eligibility checker that won’t harm your credit rating before you apply.

Improving Your Credit Score

Improving your credit score can be useful for obtaining anything from a mortgage to a small personal loan or even just a better credit card. Having a card is one of the more useful ways to improve your credit score, or to build one up in the first place if you have never borrowed before and have very little credit record. The main way that companies judge your worthiness for credit is to look at previous borrowing, and without credit card the only way to really pull this off would be to take out a loan of some kind and then pay interest on it just so that lenders in future could see that you made the repayments. With credit cards, you have a ready source of borrowing in your pocket which can be used on a whim in a normal shop. Rather than borrowing a large sum of money, you can borrow enough to pay for your weekly shop, a bigger purchase you would have bought anyway, or even the odd little item. Then pay it back promptly with no or negligible interest, and build up your credit record ready for that mortgage you really want to take out.


Viewing all articles
Browse latest Browse all 10

Latest Images

Trending Articles





Latest Images