Credit cards

• Always start by analysing how you will realistically use your card. Analyse how you have used your credit cards for the last 12 months. DO NOT fool yourself into thinking you will pay it off in full every month if you have been unable to do this consistently in the past. You would be better considering a deal that is going to work for the way you use it.



• Look carefully at the loyalty or promotional offer and choose something that benefits you. Taking a card that offers 0% interest on a transferred balance and then transferring a very low amount may be less beneficial than a card that offers cash back for money spent?



• Even if you don’t think you need a credit card it may be worth considering one and clearing the balance in full every month. This means you can build up benefits like reward points, air miles, cash back and take advantage of other benefits like insurance on purchases or emergency cover on travel at no cost. If you are sure you will clear the balance every month it can pay to take a card that charges a higher rate of interest but offers lots of benefits that you can use.