Plastic Fantastic! Using Your Credit Cards Wisely

Signing up for your own credit card is a huge step. It shows your engagement with the larger financial world. While some people may boast that they’ve never borrowed a penny from anyone else, they’ll soon stumble when it comes to taking out a large loan down the line, such as a mortgage, or a loan for a large expense such as a wedding, holiday or car. After all, if lenders haven’t seen how you deal with small amounts of cash, how can they know whether they can trust you with large amounts that are not your own? Engaging with credit is essential. However, you need to be able to use credit wisely, or you can quickly and easily land yourself in a whole lot of debt. Here are a few things to bear in mind when dealing with credit and professional lenders.

Interest Rates

Every professional loan will have some kind of interest rate attached. Essentially, this is what the lender charges you to borrow money. The lower the percentage rate, the better the deal for you. So shop around before signing up to any given credit agreement. There may well be someone out there who’s willing to offer you a better option.

Repayment Installments

You will be expected to repay a certain amount on a monthly basis. This should be the largest amount that is affordable to you. This means that you will clear your debt as quickly as possible. However, don’t set your repayment rate at an amount that is too dear for you to realistically afford. Missed or late repayments not only affect your credit score but will also land you with fees and fines.

Improving Your Credit

Keeping up to date with repayments will increase your credit rating. However, this isn’t the only way to boost your lending appeal. Whether you have negative credit that you want to improve or are simply looking for some tips and tricks to further boost your standing, take a look at This page will tell you all that there is to know about the Credit Repair Organisations Act, highlights common mistakes that you may be making, goodwill letters, charge-offs, and much more.

Creating a Budget

The main reason for people ending up in credit card debt is spending beyond their means. Remember that credit cards aren’t free money. If you are using your cards wisely, you need to make a budget. This means that when you borrow money, you are making an informed decision and are completely clear on how long it will take you to repay it and how much the loan will cost you overall. So sit down with a pen and a piece of paper and work things out properly before setting your mind on making any purchase, whether large or small.

So, there you have it. Credit cards truly can be the gateway to both financial triumph and financial disaster. You want to be in the first category, so lend responsibly and avoid living beyond your means. Stick to the terms and conditions of your contract and everything should be plain sailing!

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