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How is the year going to treat you financially in 2006? We all
use credit cards to help day to day expenses so here is a guide
to getting the most out of your card this year.
* Don't apply for a credit card if you don't need one. Don't be
encouraged into applying for a credit card just because it has a
good interest rate and you think you can buy things and pay
later. Only apply if you need to manage your finances properly.
* Take advantage of the 0% deals that are on offer. There is no
need to pay interest nowadays as most credit card companies
offer these types of deals for at least 6 months. If used wisely
you can save a fortune in interest charges. With some credit
card suppliers offering up to 9 months interest free you will be
able to transfer balances and not have to pay any interest for
close on a year. * Check the fine print as most people don't
realise that there are hidden charges when taking up the deal.
Some Credit Card companies will charge a fee for the privilege.
They can charge a % or a capped amount for admin charges. This
amounts to a tidy some when you consider the millions that will
take up these offers. * Consider life of balance transfer deals.
If you don't want to continually chase the best 0% deal when
yours comes to the end, then why not opt for a credit card that
will offer a low balance rate until it is paid off. This can be
as low as 4%. American Express' Platinum card currently offers
the lowest life of balance transfer card at 4.9%. Sainsbury also
currently offer 5.9% on the life of balances transferred during
the first six months of ownership, and don't charge a fee. *
Credit Card Insurance. Don't bother! This has to be a biggest
scam out there. What you get doesn't warrant the extra amount
you have to pay every month. The rules to claim if you do need
to are so strict that the chances of you getting paid out are
very low. If you are told this is a requirement then know that
they are forcing you as this is not. * Credit Card cheques
should be discarded the minute you get them in the post. They
are dangerous and will cost you more in the long run. This is
really cash in advance on your credit card and comes with a very
high rate of interest that will kick in the minute you use one
the of the cheques.
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