Credit cards are for many people the bane of their existence and constantly hounding them with debts and missed payments. However, living without credit cards is becoming increasingly difficult for many people and choosing a good credit card for your needs is essential to making sure you don’t slip too far into the red. With that in mind we decided to look at the key features of credit cards you need to pay attention to when selecting a card and offer some advice on how to use them.

Using your Credit Card

Whilst it might seem fairly obvious credit cards need to be used sensibly in order to get the most utility out of them. It is very easy to overuse your credit cards and end up in debt so this is the biggest caution we can give. Generally try to make credit card payments only when you haven’t got sufficient ready cash to make a purchase or when you need to avoid other debts by paying off a bill. With most credit cards it is a very wise idea to have it set so that your outstanding amounts are paid by direct debit every month. This way you know that as soon as your pay check comes in your credit card debts are paid off and you won’t have to incur interest charges. With the slight warning out the way we turn to look at the features of credit cards you need to look for.

Balance Transfer Fees

There are many 0% balance transfer credit cards available on the market and these are incredibly useful for people wishing to avoid fees when they use a credit card to pay bills or transfer money directly to their bank account. Many cards charge fees ranging from 1-7% on balance transfers and avoiding these where you can is a very good idea.

Interest Rates (APR)

The interest rates you pay on money you borrow using a credit card vary wildly and generally speaking you want to look for the lowest interest rates possible. However, sometimes higher interest rate cards will have a range of other benefits and if you can guarantee that you’ll be able to make the necessary payments every month, thereby avoiding interest, then you can choose a card with a higher rate to take advantage of other features.

Annual Fees

Some credit cards carry annual fees and if you don’t need to rely on the card for credit too often it is a much better idea to avoid these as the annual fees can be quite steep. Many cards are offered without annual fees and sometimes still with highly competitive interest rates so it is easy to shop around and find a suitable deal.

Bonuses

Credit card bonuses have become a staple of the market and using them to your advantage is a good way to maximise your utility from them. There are bonuses ranging from cash back to discounts and air miles meaning you can choose a card that will give you as much advantage as possible. Of course, with these cards you need to watch the interest rates and for any hidden fees but they can offer a lot of advantages to consumers if used wisely.

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