Credit card advice from ASDA Finance
How to use your credit card
Credit cards offer fantastic flexibility for consumers. They mean you can buy goods and spread the cost – and there’s the added bonus of not having to carry large amounts of cash. If you’re interested in applying for a credit card then take a look at the Asda Credit Card, you can apply online in 3 minutes.
Cards can also be used to improve your credit rating, and protect your purchases. But use them thoughtlessly and you may breach your credit card limit, or run up large debts which you may struggle to pay off.
The following simple hints and tips can help you to use your card to your advantage...
Hints and tips
- Try and pay more than the minimum repayment each month or interest can accrue and make your debt more difficult to manage.
- Try and pay off your credit card bills on time and in full to prevent accruing interest and/or late payment charges, which can damage your credit score.
- Avoid wherever possible withdrawing cash using your credit card - interest starts accruing almost instantly and the rate is often high.
- Avoid applying for too many cards and switching too often as this can affect your credit score.
- If you're refused a card DON'T keep applying for more as this also damages your credit rating. You can apply to see your credit file by asking the card provider which credit reference agency it uses and retrieving the information from the agency. Check everything is correct on your file and challenge anything that isn't. If you were once in debt but aren't any more you can add this to your file and it may help. Other things that may cause your card application to be rejected are incorrect information, a poor repayment history or court judgments.
Credit card purchase protection
When you buy something with your credit card, you make a contract with both the trader and the card issuer.
Credit card consumer protection means they have equal liability if something goes wrong, under Section 75 of the Consumer Credit Act.
So you’re protected if you use a credit card to buy something for above £100 and below £30,000. This protection can be invaluable if goods sent by post arrive damaged, or fail to turn up.
Draw up a budget – and stick to it
If you’re using a credit card for the first time, you may be tempted to spend without thinking about how you’ll repay the debt.
Put simply, you need to spend responsibly. One way to keep on top of your finances is to use an online budget planner to work out your incomings and outgoings.
A simple internet search will bring up a variety of budget planners and step-by-step instructions. Fill it in and see how much money you have spare each month.
How do I pay off credit card debt?What if I get into debt trouble?
If your credit cards debts become unmanageable contact your card provider to discuss your problem. Ask for interest to be frozen or inquire whether repayments can be reduced for a set period. Do not increase your credit limit - it is likely you will get into more debt.
If you've got a series of credit cards and can't afford to pay them all off each month then ensure that you meet the minimum repayments. Focus on the cards that are costing you the most each month and pay off more on these.
More information on credit card debt repayment is available from help groups such as Citizens Advice, National Debtline or the Consumer Credit Counselling Service.
