We all know we should scrimp and save for that new sofa, that much-needed family holiday or that special birthday present for a loved one - but nowadays, few of us really want to wait. Let's face it - we live in a buy-now-pay-later society. Credit Cards offer an easy way of borrowing for our everyday needs. What's more, your newfound flexible friends will even shoulder existing debt for you!

You do, however, need to keep a watchful eye on your cards. Low introductory rates are just that - a low rate for the first few months, after which annual percentage rates (APRs) often shoot up. There are plenty of cards on the market, so play the field.

But you should also be careful - too much plastic can lead to credit card chaos or a blot on your credit score, while missed payments can result in heavy fines which drive you deeper into debt.

Remember, if you treat Credit Cards right, they will be good to you. Bear in mind though - it is important to manage credit effectively and don't borrow what you can't afford to pay back.

Making The Right Choice

Pick a card, but not any card!

Everyone likes to have a choice, but there is so much bright and glossy plastic out there it can sometimes make your head spin. Firstly, you should know the difference between the various types of cards.

Credit Card: Lets you borrow money and pay it back in monthly payments. It is largely down to you how much you pay back each time, but there is usually a minimum payment of £5 or minimum percentage of your balance, say 2 or 3%.

Debit Card: Is usually linked to your current account. Rather than taking cash out, a debit card means you can make quick and easy transactions, which show up on your account almost straight away.

Charge Card: Means you charge purchases to an account. Offers a monthly statement that needs to be paid off in full. Most issuers charge a membership fee.

Store Card: You will probably have been offered one of these while out shopping. They are a credit card offered by a retailer, so they restrict where you can spend. Relatively easy to get, but they charge high rates of interest on balances.

Affinity/Charity Card: Money goes to charity when you open an account, as does a small percentage each time you spend.

Cashback Card: Will pay YOU for spending on them. But if you do not pay off full balance every month, the interest goes sky high.

Spend or mend?

There are two common reasons for getting credit cards. One of these is to make purchases. With busy and fast-paced lives, most of us are rushed off our feet and need all the help we can get. And just as supermarkets can make weekly shops quicker and more convenient, pulling out the plastic and tapping in your pin number helps you to get the job done in half the time. No visit to the cashpoint, no counting out notes, no delving deep in your pocket to find the odd pennies and no worrying about the correct change.

The other reason is to mend your balance, by transferring your existing debt into one place and making it a lot easier to manage. In doing this you can also take advantage of lower interest rates.

You can also take out cash advances, although few people would advise this as the rates are very high and there is rarely an introductory period. Many companies also offer credit card cheques, which can be used to pay bills, or make postal purchases.

Name: Balli Jutt
Email: [email protected]
PH: +923006666976
Website: http://creditcardsguides.blogspot.com/