ADVICE: Credit Card Tips

Credit Card Quote Line

0845 108 0505

• Home
• Mortgages
• Loans
• Investments
• Life Insurance
• Home Insurance
• Insurance

Credit Card Tips

Advice and tips on how to save money with your credit card.

Saving Money on Payment Protection

Payment Protection insurance policies can represent poor value for money, when compared with income protection or health insurance policies.

Using your credit cards abroad

Are you aware that every transaction you make outside the UK (including online purchases from many websites) may occur an international processing fee, which may be as high as 2.75%?

If you withdraw cash from an ATM machine, you will also be charged a handling fee in addition to this.

• Read more on using your credit card abroad

Paying off Your Balance

If you have more than one card, you may save more money by paying off one card in full, rather than by paying off small amounts on each of them. Alternatively, you may be able to make savings by arranging a balance transfer between your cards.

• Read more: Paying off your credit card | Balance Transfers

Avoiding Late Fees

If you miss a payment, or go over your limit, most issuers will charge you a late payment fee, due to the extra administration costs they incur. Regular late payments will also show up on your credit file, and may make it harder for you to borrow money in the future.

The best way to avoid late payment charges is to set up a regular direct debit to pay at least the minimum balance each month. However, you should always try to pay much more than this, and ideally you should try and pay the balance in full each month. If you can afford to do this, most card issuers will give you this option.

Comparing Credit Card Offers

When looking at credit card deals, always make sure you are comparing like with like. Remember that 0% APR deals usually only last for around 6 months, with the interest rate often going to much higher than this afterwards.

• Comparing credit card offers

One At a Time

If you are rejected for one credit card, it is best to check your credit file, and then to wait a few months before applying again.

• Why you should only apply for one credit card at a time

Cash Back Reward Cards

Remember that cash back credit cards, or cards with other reward schemes such as Air Miles, usually have a higher interest rate. These cards are only good value if you pay off your balance in full each month.

• More on cash back rewards