5 ways to keep your credit in check
Store cards are great as long as you use them in the correct way. By that I mean not just thinking WOW I have money to spend, it’s not coming out the bank, then before you know it your card is maxed out. The final cherry on the ugly cake is you need to pay it all back, most likely with high interest.
So here are 5 tips to keep your store cards in check:
1. Think before you spend.
Before you splash out on that new item just think, do you need it now or can you wait for a couple of weeks till you can save up to buy it outright? In the long run it might not only save you a few pennies in interest but you might find the next day you wake up thinking; well I’m glad I didn’t buy it as I don’t really need it at all.
2. Shop around.
Different stores often charge different interest rates and more often than not, the items sold inside them differ in price as well, so make sure if you are spending on credit that you are at least getting something that will last a while.
3. Check your credit score.
There are a number of different websites out there where you can keep on top of the credit information held about you. This will give you an idea of what creditors are seeing when you apply for anything and also means you can quickly deal with anything should the unthinkable happen and your ID is stolen.
4. Pay of more than the minimum.
When it comes to your monthly payments, if you can’t afford to pay in full at least try and pay more than the minimum, many cards will have you paying off just the interest + a small amount of the balance (if any), which can lead to more pennies going out as you spend longer paying it off.
5. If the worst happens.
Sometimes we all forget to listen to our rational side, so if the worst happens and you have a store card with a big balance, then look to transfer yourself to a 0% interest balance transfer credit card. This can help you pay off the balance quicker and at a more reasonable rate.
So next time you’re tempted to spend on credit just take a few minutes and stop and think, could you get it cheaper elsewhere or do you even need it. You never know how much you might end up saving.
What’s your top tip for keeping your credit under control?
*Written in collaboration with TSB.
i have to agree store cards and credit cards are deffo a no no for me , i really do believe in if you have it then spend it if you dont then dont lend it to get in more debt
Great tips thank you. Being stung at an early age with Credit Baron, I tend to steer clear. I buy what I can afford. Only putting the manager things on Credit.
Thanks Sarah x
Unfortunately, most credit shopping is done impulsively and emotionally and the reasoning comes after the deed has been done in my case :-). So we decided not to have credit cards anymore, as the payments were dragging on forever and the temptation was always there to spend, spend, spend!xxx
Some great tips here, I always try to keep these in mind when it comes to financial things
Good tips! I’d always stay away from store cards personally, they seem more hassle than they’re worth!
Laura x
Great reminder! Thanks a bunch! 😉
Only paying the minimum amount is something I’m guilty of I have to admit. Some great tips there though!xx
These are really lovely tips I wish I had taught this to myself 5 years ago but I have learnt my lesson no more credit cards nor store cards, if I do have it I dont spend it.
So important to keep an eye on yoru credit scoring, I checked my record just the other day. Mich x
Great tips and many of which i am putting into practice
I won’t have a credit card at all now – got myself into trouble as a youngster and still paying it off now. I am now a big believer in saving up for whatever you want. My only loan is our mortgage
Great tips. Always pay what you can affords and never take out a store card
Some really handy tips included within this post, it can be all too easy with so many tempting offers.
Some great tips. I have a spreadsheet with a list of everything going in and out of my bank account to keep track of things.
Some really good pointers here lovely, it is so easy to get it so wrong x
It’s hard to say no when they make it sound so easy and offer you a discount off your shopping but store cards have such high APR that you pay way more than you saved if you forget to pay it in full straight away x
I spent a lot in my 20’s on store cards and credit cards. These days I just keep a card for an emergency and I tend to shop online for items so I panic buy less and I can see if I can get a discount code or pay through a cashback site.
Always good to have a reminder of good practise when it comes to credit
These are really good tips. It’s so easy to get sucked into debt, so many stores try and entice you to open up a store card with savings off your first spend, sometimes it’s hard to say no!
We try hard to avoid debts apart from the mortgage. It makes life a lot less stressful.
Having struggled briefly with debt after the breakdown of my first marriage, I have now been debt free for 15 years! I only use my credit card occasionally and that i just to make sure I have some sort of credit record!
I haven’t had a store card or credit card for about 10 years now and life is so much better without them. I only spend what money I actually have, saves me getting into any unnecessary debt x
I don’t really use store cards but these are great tips for those that do.
Great tips, I think once you are in debt it can be hard to get yourself back out, but there is light at the end of the tunnel.