How to Make Your Credit Card Work For You

Owning a credit card does not mean that you will land in debt one fine day. If used wisely, credit actually can work for you. If it always seems like your credit cards have the upper hand. There are a number of ways you can benefit from owning a credit card, and ways you can actually make your credit work for you.

Pay It Off

If you want your credit card to work for you stop the interest you paying. Even if you pay 20 percent that is a big amount thrown away to make purchases. Try and look for a good strategy that would serve a better purpose for your credit cards, but first address your interest payments by paying down the debt and finding a new card with a lower long-term rate.

Use Interest Free Periods

Most credit cards will have an interest free period, where purchases you make on the card don't accrue interest for a certain number of days. By using the interest free days on your credit card, your credit can work hard for you, and help your money work harder too. Using your credit card in the month also saves you transaction fees for all the purchases and withdrawals you would normally make from your transaction account.

Rewards Card

If your credit card doesn't offer you reward points for your purchases, then change your card. Don't pay for an annual fee that credit cards charge you, but do find the rewards program that suits your lifestyle. When you pay your card in full and avoid interest charges, the credit card company is essentially paying you to use their card.

Pay Your Balance With Points

If you have a card with cash rewards or your points can go towards the merchandise, say no to spending those rewards. Try and put your rewards points towards your balance. By doing so you are increasing the value of the rewards points because they are not only paying down the debt but they're also reducing your interest burden. Make those points work for you by paying off debt.

Pay Balance in Full Every Month

It takes credit to earn credit. Avoid using credit card every small purchase. Use your credit cards only for purchases where using a credit card will make your purchase much easy. Small purchases tend to sneak up on you on the end-of-the month statement. And pay off your balance in full every month. Don't put off your credit bills at any cost.