Five good credit card habits

1. Set up a direct debit

Whether you are paying your balance in full or just paying a set amount each month, a direct debit will prevent you from forgetting a payment and the charges and hassle that it involves.

2. Know your deal

If you are on a 0% interest balance transfer or purchase deal, make a note of when the 0% rate ends and make sure you clear the balance or switch to another card before then.

3. Check your bill

Credit card fraud and identity theft are on the increase so check your bill every month for any unusual activity.

4. Pay more than the minimum payment

Pay a fixed amount off your card each month rather than just the minimum payment, so that you clear your debts as quickly and cheaply as possible.

5. Use your card for big purchases

Even if you can afford to pay in cash, use your credit card for purchases of £100 to £30,000 to get the extra protection from the Consumer Credit Act 1974.

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