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Play with credit cards

As we start 2022, is it time to fall back in love with a credit card? Many people shy away from credit cards, as they fear running up uncontrolled debts and facing high interest rates. However, credit cards do have benefits, including the strongest financial protection and the ability to budget costs with monthly instalments. Do you love or hate your credit card?

Credit Card

Big numbers

In June 2020, there were over 36m active credit card accounts in the UK. We owed £59bn in credit card debt in November 2020, which translates into per household, an average credit card debt of £2,133 – ouch!

Credit card pros

The advantages using a credit card:

  • Convenience of buying big ticket items and spreading the payments with monthly instalments.
  • Boosting a credit score, by proving to lenders that you are responsible spender.
  • The biggest advantage is purchase protection, if an item is lost or damaged or the company goes bust. The buyer is protected for any purchases made on the card between £100 and £30,000. Claim money back from the card provider.
  • Cashback and rewards, such as getting air miles or loyalty points each time the card is used for purchases.

 Credit card cons

 Owning a credit card comes with disadvantages:

  1. Getting trapped in debt, after not paying back what you have spent. Interest payments can be hefty.
  2. Damaging a credit rating by missing the minimum monthly payment or running up a big amount debt on the card.
  3. Extra fees, as some credit cards have a monthly or annual fee. Many providers charge for services such as a balance transfer. Miss or make a late payment and face another large fee. Check the APR (annual percentage rate) for the overall cost of a card.

The best way to use a credit card is not to run up debts. Spend within your means to keep a healthy credit score. Aim to pay over the minimum monthly repayment to reduce interest costs. Use text alerts to inform you when a payment is due, or you are approaching the credit limit on the card. Take credit control, rather than losing control. Enjoying playing with a credit card.

ChildMax pays your take home salary while you’re on 12 months’ unpaid leave, caring for a sick child. It starts from £49.50 or for easy budgeting an initial payment of £8.25 followed by 11 monthly payments of £3.75.

Visit at  or call the UK call centre 0333 323 0098 for more information.



Date: 24 January 2022 by max robinson