how to use credit card to my advantage?

chadwicksmith

Hi guys,

I had a student account with Barclays for a few years, I had a interest free overdraft of £1250. The balance was near the limit most of the time.

I recently got a full time job and paid off the balance and then changed the account to a normal account and they allowed me to keep the overdraft limit but now its not interest free.

I then applied for a Barclaycard which then showed up 2 days later with a limit of £1200.

I am basically trying to up my credit limit and wanted to know the best way to use the card??

I don't really know how credit cards work and I was thinking of paying off the balance in full every month? Is this the best way to use the card??

Your advice is appreciated

DavidDebt

Assuming you have no 0% interest deal on purchases then paying the balance off in full every month is absolutely the best way to use a credit card. :beer:

chadwicksmith

I'm sure I've got this card

http://www.barclaycard.co.uk/personal/credit-cards/initial

Linda32

chadwicksmith wrote: »

I don't really know how credit cards work and I was thinking of paying off the balance in full every month? Is this the best way to use the card??

Your advice is appreciated

Your thinking along the right lines. It is without a doubt the best way to use a credit card. :T

Keep a record of every single spend on it. Keep your receipts, then as you go along, set that cash aside. When the direct debit is collected you will have the money ready.

By this I mean set up a direct debit to collect the full amount due each month.

chadwicksmith

Linda32 wrote: »

Your thinking along the right lines. It is without a doubt the best way to use a credit card. :T

Keep a record of every single spend on it. Keep your receipts, then as you go along, set that cash aside. When the direct debit is collected you will have the money ready.

By this I mean set up a direct debit to collect the full amount due each month.

The card has a purchase rate of 29%, if I wait for the statement to show up and pay the balance in full do I pay the interest too? How does that work out?

sweetilemon

You wont be charged interest until after your statement due date. You will be sent a statement with the balance and minimum required. If you just pay the min you will then be charged interest on the rest. If you pay off in full in time you should not be charged interest. Using a credit card this way will improve your credit rating. A DD is good if you are likely to forget. I like to pay it online before the due date but when i know i have enough in my account. Just don't overspend and not pay!!!

chadwicksmith

sweetilemon wrote: »

You wont be charged interest until after your statement due date. You will be sent a statement with the balance and minimum required. If you just pay the min you will then be charged interest on the rest. If you pay off in full in time you should not be charged interest. Using a credit card this way will improve your credit rating. A DD is good if you are likely to forget. I like to pay it online before the due date but when i know i have enough in my account. Just don't overspend and not pay!!!

thanks for that just what I wanted to know