CashPanda's Credit Card Guide

Money is a big topic. Specifically, as a student, it’s vitally important to budget plan, think of funds as well as plan just how you use your money. Whatever your concerns, there are different ways that you can manage to do the important things you like, consisting of credit cards. They can be a frightening possibility but used well they are a truly powerful financial device that can actually aid you both currently as well as in the future.

Here is our credit card guide from is your trusted loan partner for short-term loans, payday loans, Personal loans and emergency loans.

Overdrafts V’s Credit Cards

The payment of overdraft accounts is, usually rising, while with credit cards they have a tendency to supply a wider range of benefits which include:

  • Ability to spread expenses
  • Enhancing your credit score
  • Can avoid rate of interest or fees

Credit cards are a fantastic way to spread costs or to boost your credit history, which is really helpful for the future when it comes to purchasing a car on finance, obtaining a home mortgage or other types of finances.

Here are 5 Top Tips for Utilising A Credit Card Well

If you utilise it sensibly, a credit card can be truly advantageous for your finances, budgeting as well as future planning. Comply with these top suggestions and you will really take advantage of your credit card!


1. Know How It Works

Before you get a credit card, let alone begin using it, you need to ensure you completely recognise exactly how they work. This develops the foundation for using it well!

Credit cards are a kind of financing. You invest cash on credit score recognising that you are after that going to pay it back at a later date. Unlike a regular loan, there is no fixed day by which you have to pay the money back so it’s an excellent means to handle larger settlements.

This does not imply you ought to spend whatever you desire. To utilise a credit card well, you must just spend money you recognize that you can manage to pay back without issue later. This is because you will be charged rate of interest on any kind of money you borrow that rolls into the following month.

Rate of interest

Different credit card firms, and various cards supplied by a single business, will charge various quantities of interest on the credit report you utilise. The rate of interest indicates that, at the end of the month, you will be billed a certain percentage of the debt you’ve invested and not yet paid back. This is credited your card.

If you have actually paid the card in full that month, you will not be charged anything.

Minimum Repayments

Every card will certainly have a minimum regular monthly repayment. This is the quantity you have to repay on your card every month, otherwise you’ll incur fees. This could be a defined quantity, just ₤ 5, or could be a portion of your debt.


Every credit card will also have a limitation. This is to help keep you secure from borrowing way too much money. Your initial credit card will have a smaller limit that will certainly increase in time when you verify yourself to be a trusted borrower. If you discuss your credit line, you will sustain added fees.


2. Know What You Want It For

There are numerous reasons why people may get a credit card and also this can alter while you have your card, but starting knowing what your aim is truly essential as it will certainly aid you utilise your card a lot more carefully.

Spreading Fee

Credit cards can be used to spread the cost of much more expensive settlements, anything from event tickets to a brand-new laptop. Credit cards have a minimum payment, however or else do not have a time frame on when you require to repay the cash you borrowed on credit report. This can assist make expenditures more budget-friendly, yet remember to budget for the payments, taking rate of interest right into account, so you do pay the cash back with time. Otherwise you can get into more debt.

Building Credit

You can utilise your credit card for the objective of developing credit. It can be truly handy to have an excellent credit report even if you do not require it now. It takes time to develop your credit history, so the earlier you start the better.

To use your credit card to construct your credit report, you need to make small however frequent purchases with your card as well as always ensure you pay them back completely. This assist to steadily develop your credit file, showing that you can be trusted with borrowing money.

Short Term Borrowing

As opposed to dipping also a little into your over-limit, you can use your credit card to borrow small amounts of money if you are instantly in a pinch. This is most efficient when you recognize that you will have the ability to pay it back within a couple of weeks yet require a means to cover an unanticipated fee in the meantime. It is important, nonetheless, that you consider the minimum monthly payment if you are most likely to do this as you do not intend to incur extra charges.

3. Repayments

The very best way to use a credit card effectively is to make regular repayments, factoring these into your budget. Establish automated minimum payments so you do not need to fret about mistakenly obtaining additional charges.

If you are utilising your credit card to develop your credit report, then most cards will certainly permit you to establish automated complete payments. This makes certain that you do not obtain charged rate of interest on credit report that you’re simply utilizing to aid improve your credit rating.


4. Claim on Lost or Damaged Goods

By legislation, credit card business themselves are liable if something you have spent for on credit scores (between ₤ 100 and ₤ 30,000) goes missing out on, arrives damaged or isn’t supplied, consisting of a product or a solution. This means that credit cards offer you added defines on things. If something goes wrong, ensure you make an insurance claim to your credit card company.


5. Utilise an App

A terrific suggestion to use your credit card wisely is to take advantage of apps that credit card business supply. These aid you to keep on track of what you have borrowed, how much you need to repay, interest and other details. They make it truly quite easy to make monthly payments and to stay in control of your card.

If you have a bank account and a credit card from the exact same business, then it can typically all be integrated into the one app so you can see all your monetary info in one location.

Credit cards can be a superb monetary tool when used well, assisting to build your credit rating, spread payments and stay in control of your finances. Our greatest leading tip is to guarantee that you always go on top of repayments. 

Missing, or not also making, payments can get you right into financial difficulty. If you stay on top of what you use, credit cards can be extremely helpful in everyday life and planning for the future. 

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If you are considering applying for a loan or a credit card please make sure you can afford to repay it back in time. Late repayments can cause you serious money problems. For help please go to Money Helper, your trusted partner to help you with the loan you need.