Using your credit card sensibly
Why do so many of us not read the small print? Here is some essential reading for understanding the fees and charges that are often included in your credit card bill.
Using your credit card
Credit cards often carry hidden costs - application and processing fees, late payment fees, transaction fees, exceeding your credit limit fees and balance transfer fees.
The best way to avoid fees and charges:
- Read your terms and conditions of your credit card agreement – the terms and conditions outline all the charges you could be susceptible to.
- Make sure you know what your introductory interest rate is and when it will end.
- Pay the full balance each month to avoid penalties and interest.
- If you're planning on making a large purchase for several thousand pounds or more, another way to get the benefit of a 0% credit card would be to move the cash you would have used to a high interest saving account.
Once the interest free period has come to an end you're card may resort to a higher interest rate. Just try to remember when the interest free period comes to an end.