Credit cards ‘are a handy way to make purchases’

When used properly, credit cards can prove to be an extremely effective spending tool, it has been suggested.

The numerous benefits of using a credit card have been highlighted by one writer.

Stating such products are “a very handy piece of plastic”, Rachel Robson points out the wide-ranging benefits attached to credit cards. And they can be particularly effective, she reveals in a lovemoney.com article, for those looking to fund major expenses.

Indeed, should people have an event such as a birthday or holiday coming up and they already know they will be unable to meet such costs straightaway, a 0% purchases credit card could be “a sensible way to pay”. By funding expenditure this way, consumers will find they benefit from an interest-free period “giving you plenty of time to pay off the debt”.

And those looking to compare accounts in order to get the best deal possible may be interested to hear her points that the Halifax All in One Credit Card offers 0% purchases for a nine-month period, while the Tesco Clubcard Credit Card does not charge interest on purchases for a year.

A cashback credit card could also be advisable for those who pay for day-to-day goods and services on their plastic but manage to pay off what they owe at the end of each month. Indeed, by using such a credit card Ms Robson points out that borrowers can earn back a percentage of what they spend, with the American Express Platinum Cashback Card an especially effective product for this. However, those who are unable to clear off their balance each month were reminded they will face a “hefty interest rate”.

Meanwhile, people who they have amassed significant debts may wish to consider shifting money owed on existing cards to a 0% balance transfer credit card. And as seeking out 0% credit card deals means consumers will not be charged any interest on money owed, she states borrowers will have the opportunity to make headway into clearing their debts.

The benefits of taking advantage of 0% balance transfers were recently highlighted by Neil Faulkner in an earlier lovemoney.com piece who claimed such credit cards are “an extremely cheap way to borrow”.

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