Why you Should Switch and Save with Your Credit Cards
Credit cards can be a very useful financial tool. They can be great for consolidating debt, handy when travelling, ideal for building up your credit rating and they can offer great rewards if you use them for your everyday spending.
In fact, credit cards come with a host of benefits and providing they are used correctly, they can offer big advantages over using your debit card.
Many credit cards come with introductory offers that allow you to avoid paying interest for a set period. Some cards offer interest-free periods on balance transfers, making them ideal for debt consolidation. Others offer 0% periods on spending - great for funding a large purchase that you intend to pay off before the promotional rate expires. Some credit cards even allow you to earn cashback or rewards as you spend. But you must pay off your balance in full each month.
If you use your credit card to buy goods, your purchases will also be protected under Section 75 of the Consumer Credit Act. This means you can claim back your money if the goods are faulty or don't arrive, providing they cost between £100 and £30,000. The Consumer Credit Directive boosted this protection further in 2011 and allows you to claim back up to £60,260.
Credit card providers are constantly competing to bring out new and better products, so it pays to take advantage of these offers and switch your credit card. Doing so could save you a lot of money.
It's worth remembering though that every time you apply for a new credit product, a search is made on your credit file
. Too many searches can have a detrimental effect, so be sure not to switch too often. Waiting until the end of a promotional rate should provide sufficient time between applications.
You can maintain a healthy credit score by avoiding applying for several products at the same time and closing down any cards that you're no longer using.
Check out our stats below on why you should switch and save with YOUR credit cards
, and how you can use credit cards to your advantage.
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