Credit Card Solution

Credit cards are a popular financial tool that is used by millions of people across the UK. There are many reasons to consider using your credit card on a regular basis. This article looks at some of the main ones: whether you use interest free credit cards or a balance transfer card, it’s definitely worth thinking about using your card regularly.

Purchase protection

One reason to use your credit card when making purchases – especially significant purchases – is because you benefit from purchase protection. This is something that credit card companies are required to do under the 1974 Consumer Credit Act, and it means that if you make a purchase on your card but then don’t receive it for some reason, you will be able to claim back the money you spent on it from your credit card provider. This is in contrast to using debit cards or cash, which would make it much harder to claim back your money.

Positive payment hierarchy

Credit cards also operate on a positive payment hierarchy. This means that any outstanding balance with a higher rate of interest will be paid off before the balance with a lower rate of interest. For example, if you had a balance transfer card with a ₤500 transferred balanced charged at 0% interest and an additional ₤200 charged at 16.8% interest, the ₤200 would be paid off first. This helps to minimise the amount of interest you have to pay, which can help to pay off your balance more quickly.

Additional rewards

Also, using your credit card regularly can bring you additional rewards. For instance, if you had an air miles credit card, the more you used the card, the more air miles – and therefore the more rewards – you would be able to enjoy. Similarly, if you had a charity credit card, the more you used your card, the more you’d be able to benefit your chosen charity, meaning that it’s definitely something worth taking into account when deciding how to use your credit card.

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