4 ways to make credit cards work for you

Credit cards can do so much more than simply generate profits for your bank. When used properly, you can use them to your advantage without it costing you a penny. To get you started, we've compiled a few ways that you can use your credit card to do just that.

1. Credit Rating

Using your credit card is one of the easiest ways to build your credit rating, which can pave the way to cheaper loans and mortgages in the future. Start by regularly using your credit card to make small or large purchases, before paying off your balance in full before the month is up. If you're super-organised, you can use your bank's mobile app or online portal to pay off your card as soon as you spend, ensuring you never see an interest payment.

2. Free Protection

One of the biggest bonuses offered by taking out a credit card is the protection that it provides when making those bigger purchases. If any goods paid for by credit card that cost between £100 and £30,000 fail to arrive or turn up in a bad condition, the credit card provider will claim the expense of repair or replacement on your behalf. Most credit cards operate under section 75 of The Consumer Credit Act 1974, but it's best to take a look at the specific payment protection plans of your credit card provider just in case.

3. Balance Transfers

A credit card can be a really great way to deal with monetary strains and stresses. A balance transfer credit card gives you the option of transferring existing debt onto a credit card with 0% interest for a fixed period of time. This will give you breathing space to sort out your finances by relocating them to one, stable location. There are dozens of deals on the market, some of which are offering 0% interest for more than two years.

4. Special Offers

Most credit card providers offer valuable deals to incentivise customers to take out one of their cards. When researching the best rates available, make sure you also take into consideration the sorts of bonus offers that come with signing up for a certain company's card. Some credit card holders provide extended warranties on electronics or other big purchases, while others run in conjunction with points schemes like Nectar or British Airways. These special offers are a great way to cut your other household costs, with points redeemable against the likes of food shopping and holidays.

To track how much you're saving with credit cards and keep on top of your balances across all your accounts, sign up for our free Money Dashboard budgeting software, giving you access to all your information in one place.

Back to blog home


All content is for informational purposes only and is the opinion of the author. Nothing on this website should be interpreted as "advice". Money Dashboard Ltd make no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions or any damages arising from its display or use.

Related articles

Download app
Important Information: Money Dashboard Neon and Classic mobile and web apps are now closed as of 31/10/2023. Please see our FAQs for more information.