How credit cards work – things to consider | ASB

Credit cards are now much more than shopping accessories or short term loans. They can give you access to complementary services and rewards, or even be tools to manage your money. There are different types of credit cards for different types of spending – so it’s best to work out in advance exactly what you need from your card, in order to find the right fit for you. You might want a credit card for everyday purchases and intend to pay it off every month. You might need it for a big ticket item, like a holiday. Or you may just want the security of knowing you’ve got extra cash if you need it. Each month, you’ll receive a statement detailing your previous month’s purchases, any accrued interest and applicable fees, along with the full amount owing and the minimum amount to pay. You can build a positive credit rating by paying your credit card bill on time, staying within your allowable limit, and paying off more than the minimum amount each month. Planning how you’re going to use your card is important. A little bit of forethought can help you stay on top of your spending, stay within your limits and give you a number of added benefits to get the most out of your card. For other ideas, check out more ASB money tips.

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