Five tips to get the best from your credit cards

Credit cards are a great method of payment offering many benefits compared to the traditional bank debit card. If you are using your credit card properly and understand how it works you will have a pleasant experience with a credit card and will find it very useful in your daily life.

Here are my five tips when using credit cards, what to consider before agreeing to a credit card and what to do to ensure you get the best use from a credit card.

1. First of all think about your borrowing needs, credit cards are an option if you are looking to borrow money however standard rates can be higher than going for a loan. On the upside many providers offering fantastic introductory deals like zero percent interest, sometimes for both purchases and balance transfers. So it is possible to transfer any existing credit card debt you have to a new card and have a period were you can work on clearing existing debt. If you use credit cards simply as a method payment then you can opt for a cashback card which will give you money back on everything you spend.

2. Many department stores offer store cards and incentives like 10% off your purchases for signing up there and then in store. While it is fine to take advantage of introductory offers don't use these if you are likely not to clear the balance, they have very high interest rates with some above 30%!

3. Even those that clear their balances every month can occasionally get distracted and forget to pay bills. Ensure you set monthly direct debits to pay at the least the minimum repayment as the credit card provider will charge you late payment charges.

4. Don't go to your bank for a credit card without checking out other offers. The credit card market is highly competitive and there are many providers who are likely to offer much better deals. As your local bank has high street presence they often aren't offering the best deals possible. The advice is shop around.

5. Always check your credit card statements thoroughly and your credit record regularly to reduce your risk of fraud. Important to shield your PIN number when using it as well.