The document provides tips on using credit cards, emphasizing their potential benefits and risks for managing credit scores. It highlights the importance of regular payments for improving creditworthiness, the safety of credit cards compared to cash, and the financial consequences of missed payments or choosing to pay only the minimum balance. Additionally, it advises consumers to monitor their credit activity and check their credit reports regularly.

1. Credit Cards: 5 Top Tips!

2. But First…
 Credit cards enable consumers to
make purchases on credit, i.e. the
card issuer pays the business on
behalf of the consumer and bills
the consumer to repay the
amounts on a specified date the
next month.
 While banks are known widely to
issue credit cards to their
customers, there are some
retailers and independent
providers that also issue credit
cards.
 You need to be aged 18 years and
above to be eligible to apply for a
credit card.

3. # 1
The Good
 If you are good at making
regular payments, then
using a credit card could
actually be good for your
credit score.
 This is because it shows that
you have a high level of
creditworthiness, i.e. you
can be trusted in taking out
credit as you will return it in
good and proper time.
The Bad
 Making late payments, or
missing payment due dates,
or switching credit cards
within a short period of
time can indicate low levels
of creditworthiness to
potential lenders.
 These can show up in your
credit report and affect your
credit score negatively.
Your credit card can affect your credit score
in both good and bad ways

4. # 2 Credit cards can be safer than cash!
 If your cash is stolen, it’s gone, but if your
credit card is stolen or lost, you just need
to call your credit card issuer to cancel it.
 If you happen to make a purchase from a
business that shuts down soon after, you’re
most likely to be protected by your credit
card – i.e. your money is reimbursed to you
by the credit card company, as long as it is
within a certain limit.
 Check the terms and conditions that come
with the credit card for these provisions
though before you sign up to it.

5. # 3 Miss a credit card repayment – and it could
hurt your purse!
 Do remember that if you
are unable to clear the
balance that you owe to
the credit card provider,
you are likely to pay high
interest and surcharges.
 If you miss even one
payment, the interest will
start to pile on and you
will end up having to pay
more than you had
initially borrowed.

6. # 4 Paying the minimum balance due
can also be costly!
 Your credit card provider may
give you the choice of paying
the balance off in full at the
end of each, or pay a minimum
amount.
 If you choose to pay the
minimum amount, you will
probably end up having to pay
interest on the rest of the
balance owed.
 This can make it longer for you
to clear the total debt that you
have on the credit card!

7. # 5 Your credit card activity is reflected in your
credit report!
 You would need to undergo a
credit assessment, where the
lender would run a credit check
to see what your credit score is
and may even check your credit
report to see what your credit
activity is like.
 Before this happens, you can
check your own credit score and
credit report to see for yourself
how healthy your credit activity
is and whether you need to
make any improvements to it.
 Checking your own
credit score and credit
report does not affect it
in anyway, by the way!

8. Check your credit score and credit report
today at
!
.co.uk !