0% Credit Cards in the UK
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Are
Credit Cards good for other things? |
Financial planners advise people who have gotten into credit card debt to get rid of all their credit cards and live within their means. Sometimes, however, we all need a credit card for certain things. If you are going on holiday and want to rent a car and book a hotel and airfare, you must have a credit card. If you want to buy something through a catalog or on line, you need to have a credit card. If you want to use your credit card for these things, that is fine. However, what you should do is make sure that you have the money in the bank to cover these expenses at month end when the statement comes. If you must, advises a financial planner, write a check to the credit card company at the same time you make the purchase. Put the check in an envelope and hold it until your statement comes. This way, you will have the money to cover the charges you are making. You
also need to have a credit card in order to keep a good credit rating.
This sounds backwards, but it isn’t.
Your credit score is based on how much credit you have and how
well you pay it back. You
need to have a credit card to show that you can pay off the balance, or
close to it, each month. Your credit rating affects the interest rate
you pay for everything you buy on credit including a home, a car and credit
cards. You should always
try to keep the balance on your credit cards at about 50% or less than
the amount of credit available.
In other words, maxing out your credit cards will not only cost
you a lot in interest, it will hurt your credit score as well.
In
general, you may want to keep one or two credit cards that you use for
travel and emergency purposes only. Try to keep your use of them down
to a minimum and pay off as much as you can each month to keep your credit
good.
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Copyright 2008 0% Credit Cards UK Guide Articles
By Kate Spencer. All rights reserved |
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