Using credit cards to improve your finances

Not everything about credit cards is negative; check out some of the ways they can actually benefit you.

06:59 29 August 2013

Credit cards often receive a bad reputation, but in reality the problem is how credit cards are used and not the credit cards themselves. In fact, you might be able to use credit cards to help reduce debt and regain your financial security. Here are a few ways that credit cards might be more helpful than you imagined:

• Check balance transfer rates and available credit lines for any and all of your existing credit cards. Make sure to also find out about regular interest rates and introductory rates in case balance transfer rates or other rates are only temporary. If you are paying more interest or have a more uncooperative bill that needs to be paid, it might be a good idea to put it on one of the credit cards as long as the minimum payment is affordable.

 

• Choose one or two credit cards with the best interest rates, credit limits and flexile repayment options. You probably already have a pretty good idea about which company you prefer to do business with. Work on paying your other cards off first to reduce the amount of accounts you have opened, or pay down the company you want to keep and see about transferring balances from your other accounts. Once you’ve done that, it’s probably a good idea to close the unwanted accounts.

 

• Using credit cards wisely and making reliable, timely payments can actually help improve your credit rating. It shows that you have budgeted for your bills and are mindful of the due dates.

 

• Credit cards may also come in handy if you have a business idea that you’ve researched and want to implement, or if you’re faced with an emergency that would otherwise cause financial disasters.