Have you got a credit card but you’re not sure if you’re using it to its full potential? Don’t worry, we’ve got you covered! The Credit Savvy team have compiled a list of five great credit card habits to help get you started.
# 1. Choose the right credit card for you
It’s hard to know which credit card is right for you. Do I go with a low rate, low fee, or rewards card? Help me choose! While there is no “perfect credit card”, the right card for you will depend on your individual circumstances. To help you understand the different cards out there in the market, we’ve broken them down in our article: What credit card should I get?
# 2. Pay your credit card bill on time
This should just be a given. Pay your credit card bill on time, every time. Set up a reminder or a direct debit so you never miss a payment.
As part of Comprehensive Credit Reporting, your repayment history can now be included in your credit report and might impact your credit score, so it’s more important than ever to make sure you pay your bills on time.
# 3. Know your rates and fees
Are you paying interest on your credit card and don’t even know the interest rate? What’s your annual fee? Are you charged a fee for making purchases overseas? These are all very important facts that you should know about your card. You could be paying over 20% p.a. in interest or a $300 annual fee for a card you don’t use!
Do your research and see if you’re getting a good deal on your card. If you’re looking to switch or you just want to start comparing, check out Credit Savvy’s credit card comparison service for the latest offers.
# 4. Use the extras
Lots of credit cards come with complimentary extras that you may not know about or have simply forgotten. Extended warranty on purchases, complimentary overseas insurance cover, even access to special offers on shopping and travel, are some of the benefits you could be receiving. Always check the terms and conditions so you know what you are entitled to and make sure you’re not caught out on the fine print. Check out our article, The hidden perks of your credit card, for more details!
# 5. Understand credit
It’s important to understand how credit can affect you. How does applying for a credit card affect your credit score? Are you able to keep up with your repayments? Do you even need a credit card?
There are lots to consider before applying. Make sure your credit report is accurate and up to date! You don’t want to be caught out by any surprises. You can get your Experian credit score and a summary of your credit report for free right now by signing up to Credit Savvy.