Points credit cards

When using a credit card, it’s best to pay off your entire credit card balance every month if you can afford to – this way you won’t pay interest and you can avoid building up debt. If you can’t afford to pay off the full balance, pay off at least the minimum monthly payment – ideally more.

Also avoid missing payments – credit card providers will often charge a penalty when you do, but more importantly, you risk harming your credit score.

Setting up a direct debit could be a good way to ensure you pay off at least the minimum amount of your credit balance each month. 

Each time you make an application for a credit card, it leaves a record on your credit report. Too many applications will make it look like you are in desperate need for credit and as a result, your application may be rejected.

Some credit cards have extra benefits that reward you when you use them a certain way. While some of them can be tempting, it’s better to get a credit card that will give you rewards for the way you spend already. For example, an airmiles credit card is only going to be useful if you’re a regular flyer, no matter how tempting lounge access might be – but if you’re a regular shopper at a particular high street store, there might be a credit card that gives you cashback for shopping there.

If you’re planning to use your credit card overseas, check whether or not you’ll be charged for doing so. Many credit cards charge foreign transaction fees, so it can be a good idea to look for a card that won’t charge you for using it abroad.

Some cards will charge a fee if you use it to take cash out of a machine, and on top of that you’ll be charged interest from the moment you receive your money. So avoid using your credit card for cash withdrawals unless it’s an emergency.

Credit card fraud, like any fraud, can be very serious – you should always take care when using your credit card, and be careful where you keep it. Never tell anyone your PIN and regularly check your statements to make sure there are no surprises.

If you’re applying for a credit card, you might be able to find a better deal if you look through offers from different providers before taking one out. With MoneySuperMarket you’ll be able to search through multiple credit cards and compare them by a range of factors, including their interest rates and any benefits and rewards they come with.

All you need to do is answer a few questions about yourself and your financial situation, and our Eligibility Checker will show your chances of being accepted for different credit cards. This won’t affect your credit score, so you can run a check without any worries.

Once you know which card you want, you can normally apply by phone, online, or in person if the provider has a high street branch. However, when you do apply, the provider will usually run a hard credit check – which will show up on your credit report – to confirm whether they’ll give you the card. If you’re accepted they’ll tell you your credit limit and interest rate, and soon you’ll be ready to start using your credit card.