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Using a credit card - Text Version
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Using a credit card
Getting a new credit card is a bit like getting super powers.
With great power comes great responsibility.
Well said, superbrummie.
Yes, used correctly you can do some pretty amazing things.
But they could also be used in a slightly dubious manner too.
So, how do you make sure you're using your new credit powers to your full advantage?
By following these 3 super-tips.
Know your credit limits.
Yes, whatever you do, keep within your credit limit
This is the total amount your credit card company is willing to lend you based upon their scoring of your application.
Go over it and you might have to pay extra charges.
Know how your powers work
Yes - as you probably know, you can use a credit card to:
Transfer balances from other credit cards.
And get money from cash points.
However, you will normally be charged different rates of interest on these.
And most card issuers use your payments to pay off the lowest interest balance first, and the highest last, which will cost you more.
Know your PIN
Your PIN is a 4 digit Personal Identification Number that you need at cash points, and in shops, to verify who you are.
You will never need to use your PIN online, and like a secret identity, you should never tell anyone what it is.
I'm from Dudley