How to Make the Most of Your Credit Card

11th February 2017

Credit cards can be very useful. It gives you the flexibility to make big purchases conveniently without having cash on you. It evens out your cash flow by allowing you to pay for these purchases over a longer span of time. With most things in life, you need to know how you can extend the value of what you have. The case is no different when it comes to credit cards. When applying for one and using it. You need to determine how you can make the most of your credit card. Read on to find a few tips which can help you do so.

Tip 1 – Make the Most of Your Credit Card

If you have more than one credit card, know which one to use when. By being flexible with your cards and knowing which to use when shopping at certain shops, you will be able to avoid surcharges and maximise the reward points that can be earned.

Make the Most of Your Credit CardTip 2 – Make the Most of Your Credit Card

Always spend within your set credit level. If you aren’t happy with your credit limit or find it difficult to stay within it, you have the right to request an increase.  A higher credit level will enable you to spend more and have the peace of mind of knowing that extra funds are available if they become needed.  If you have more than one credit card, switch between them to ensure that you don’t overspend on one of them.

Tip 3 – Make the Most of Your Credit Card

Another way to get the most out of your credit cards is never to let the balances pile up on them.  Make sure that you make monthly payments every month. By doing this, you will avoid unnecessary interest. To always end up on top you should try to pay more than the minimum repayment.

Tip 4 – Make the Most of Your Credit Card

Most of the big banks offer apps which enable you to have access to internet banking. An app can help you stay in control of your credit cards by watching out for any extra or unrecognisable charges, being able to monitor your card use, etc.

Tip 5 – Make the Most of Your Credit Card

Understand how grace periods work. These are periods of time when repayments of purchases can be made interest free. The most important thing to remember about this is that the balance should be paid in full by the end of the grace period for it to be taken into account.

Tip 6 – Make the Most of Your Credit Card

Some credit card institutions offer 0% intro rates which enable you to make purchases and to pay it back at a 0% interest rate for a selected period. Be sure that you take advantage of this! You can make big purchases and pay them back interest-free later on. Also, make sure that you understand all the terms around this offer and that you don’t overspend on something that you won’t be able to pay back later.

Tip 7 – Make the Most of Your Credit Card

Use your credit card to build your credit history. Never miss payments, even if it is just the minimum per month. Try to keep the balances as close to R0.00 as possible.

All info was correct at time of publishing