We are constantly being told these days that credit has some major pitfalls, and indeed some of you reading this will most likely have found that out the hard way. I.e. it is way too easy to get into debt that beyond our means to pay off.
On the other hand when we manage our credit, especially our credit cards, properly it does work for our advantage. For example if we pay off the credit card in full each month we can make purchases up 56 days before having to pay for them. However it is important to remember that the lenders will try to find any way they can to add additional charges to the account so make sure you are always up to date with their Terms & Conditions, and abide by them.
Does it really cost your lender that much to cover the administration of a late payment? Nope! it is just another way for them to make additional profit, so don’t give them the opportunity.
To make your credit card work for you, you must pay the balance off in full each month, which is exactly what your lender does NOT want you to do, they would much rather you pay of the minimum amount each month that way they can charge you interest, and you will never be paying the debt off.
Each time you use your credit card keep a running total of how much you have spent on it that month so that you know when to STOP using it, which is when you get to a point where you know you will not be able to pay the balance in full when it is due.
By living off your credit card sensibly and paying it in full each month your credit rating will soon start to go upwards and you will then get better terms from your lender, do not be tempted to accept an increase in spending limit on the card unless you can really afford to pay that much back each month.
Hopefully this will help you to manage your credit in a way that is in your favour and not the lenders.