Reap Credit Card's Benefits By Repaying The Full Balance Each Month

Experts from Moneyfacts.co.uk have highlighted just how credit card consumers within the UK could benefit if they are able to use their credit cards regularly and at the same time resist the temptation to repay the balance in instalments. By repaying the balance on the card in full each month, Brits could really start to reap the benefits, actually getting rewarded for using the card rather than penalized through interest charges.

Many credit card users that only repay a portion of their balance each month have to look out for affordable interest rates as opposed to any other benefit or reward that the credit card offers. However, those that do repay their balance in full each month don’t have to worry about the interest rates charged on the card, and can instead find a card that offers a range of other benefits such a great cash back deals, reward points, air miles, and more.

A personal analyst from Moneyfacts stated: "If you can be disciplined enough to use your credit card for your day to day purchases, while keeping the money aside to repay your statement at the end of each month, then it can be a win-win situation." He also pointed out that consumers that put their money aside in order to repay the card’s balance at the end of the month would also benefit from earning interest on the money that had been put to one side each month.

Consumers that are able to repay their balance in full and want to make the most of the various rewards offered on many credit cards today should think about how they can most benefit. For instance, frequent travellers could enjoy slocking up air miles towards their airfare whereas other consumers may find that they benefit more from a credit card that offers cash back on their purchases.

Alisdair Milton
9th November 2006

More Information:

• Cash Back Credit Card - General Guide
  It seems almost too good to be true; a credit card company giving back money to the user just for spending it in the first place! However, as with all good deals, there are terms and conditions.
• Common Credit Card Mistakes
  With credit cards now outnumbering people in the UK you would be right to assume that not everyone in this country uses their credit cards either correctly or wisely. But what are the most common mistakes that credit card holders make when using their credit cards?
• How To Avoid Paying Those Pesky Credit And Debit Card Fees
  It seems that UK credit and debit card providers would like to charge us each and every time we use our plastic cards these days. While the charge for each separate individual transaction may not seem like much, add them up over a month or two and suddenly the amount has some value. So, how do we avoid having to pay pesky fees to UK credit and debit card providers?
  

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