Get The Most Out Of Your Credit Cards

Many of us use our credit cards on a regular basis, but out of the people who do, not many do so for the right reasons. Before using your credit card, think to yourself, what am I getting out of this? Credit cards are now at a stage where the providers are offering brilliant rewards every time you use their card. Bearing this in mind, how many of you can actually say you reap the rewards your card offers? My guess is not many. I will try and detail how you can get the most out of your credit card.

Have your own business?

For those of you that have your own company, have you considered a business credit card? Business credit cards offer flexible spending to company owners, whilst allowing them to easily monitor company expenditure. They allow businesses to easily build their business credit, helping to build the company’s credibility. Business credit cards also come with a lot of rewards; many offer business discounts on supplies and various travel rewards. For those business owners who are worried about protection when using your card, business credit cards offer advanced levels of security; including identity theft protection, purchase protection and misuse insurance. If you decide to get a business credit card try and compare as many as possible to make sure you are getting the best deal.

Love shopping?

Shopaholics could be missing out on big savings by not using purchases credit cards. Purchase credit cards typically give you a certain time period (e.g. 12 months) where all your purchases are interest free; you could save hundreds in interest payments. They also offer various reward points depending on what card you use; for example, if you have a specific store card, they may offer you 1 reward point for every $1 you spend; these points can later be redeemed in store.

Love being rewarded for your spending?

If you want a card which simply offers more rewards then any other, then you can go for a rewards credit card. Rewards cards sometimes don’t offer the flexibility of a 12 month interest-free period on purchases (it may only be 3 months) but the rewards you receive when you spend will be greater than any other. An example could be to receive 5% cashback on all purchases within the first three months of your card, then 1% cashback from then on. If you use your card on a regular basis you could save a lot of money.

Enjoy going travelling?

If you consider yourself to be a frequent flyer, have you considered using an airline credit card? Airline credit cards give you the opportunity to build up air miles to use at your leisure. Many of the top credit card providers offer these cards, but the way they let you build your air miles can vary. Many offer build as you spend rewards, where you can build 1 or 2 air miles whenever you spend a $1. Others can offer big blocks of air miles if you spend a specific amount in the first few months of receiving your card, an example of this could be 20,000 air miles if you spend $500 on your card within three months. These are just two examples, credit card providers are clever and they often try to differentiate themselves from their competitors, so when looking for an airline credit card, make sure you compare as many as you can.

The examples above are just a taster of how your credit cards can benefit you, make sure you ask around, read reviews and choose the perfect card to suit you.

This article was written by Andreas Nicolaides, a personal finance and credit card expert from MoneySupermarket.com.