Use Your Beneficial Credit Cards To Pay Bills

It has been reported that Britain's credit-card market is one of the really competitive in the world, as credit cards have become an integral part of everybody's life due to several benefits offered by them. Most cards have no annual fees, offer attractive interest-free introductory periods, and comprise generous loyalty schemes.

However, the fact is they also charge hefty interest rates typically between 15 and 20 per cent APR, which means that that they are an inappropriate means to access funds for any period of time.

Though, if you use your credit cards sensibly, no one can stop you from availing advantage of all the benefits of credit cards.

If you don't yet have any credit-card debt and are thinking about buying something big, there are cards accessible in the market that won't charge you any interest on purchases for the first few months. First Direct's Gold Card provides 0 per cent on purchases for a full year although you have to be a First Direct current account customer to meet the criteria.

In the case of the Amex card, you will get 5 per cent on all purchases for the first three months, and then up to 1.5 per cent thereafter, which is based on your each year spending.

Other cards provide useful rewards like air miles. The Lloyds TSB Duo card, for example, pays you one air mile for every £10 you spend. The air miles that you accumulate will ultimately buy you a flight comprising taxes. However, you will need to spend £15,000 on your card to entail a return flight to somewhere in Western Europe.

By doing all the spending on the credit card every month, and put your salary into an immediate access savings account to slightly earn an interest. Then, pay back the full balance on your card every month but not until the last minute, so that you can maximize the interest on your salary. This will make you a few extra pounds in interest and provide you air miles, cashback or other rewards for just doing spending that you were planning on doing anyway.

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