Ah, the fickle credit card.
Use it wisely and you’re rewarded with a powerful financial tool that can simplify your life in a bunch of different ways. Use it poorly and you’re liable to end up in a stack of high-interest debt.
Here are five simple things you do to maximise the potential of your credit card.
1. Maximise your rewards
One of the perks of owning a credit card is that you’re often rewarded just for using it. Whether it’s Airpoints, luxury goods or cold hard cash, compare credit cards in NZ to ensure your provider’s reward system suits your interests and matches your spending habits.
2. Don’t be afraid to chargeback
Unhappy with goods or services you’ve purchased on your credit card? Recover your money with a simple chargeback. As the NZ Herald reported, 90 percent of respondents in a Consumers’ Checkbook poll reported that their chargebacks in 2016 had been successful.
3. Avoid taking out a cash advance
While it is possible to use your credit card to take out a cash advance, most providers impose a fee and will immediately start charging interest from the date you withdraw the money. Unless it’s an emergency, never take out a cash advance on your credit card.
4. Set a sensible credit limit
After you’ve proven to be a responsible financial customer, many banks will allow you to increase your credit limit – quite drastically, in some instances. Resist temptation from the get go by setting yourself a credit limit you know you can pay off in a reasonable amount of time.
5. Pay it off on time
It’s no big secret, but our number one piece of advice is to always pay off your credit card on time. Fail to do so and you’ll start incurring massive interest, which can rapidly stack up and wreak havoc on your finances.
Have any questions or comments? Let us know in the comments section below.
Happy Saving!
PocketWise