How can I manage my credit repayments?

Whether you’re an experienced credit card user or it’s all new to you, it’s always a good idea to think about how you manage your account. These short videos can help.

• Getting the most from your card
• Balancing spending and repayments
  
• Staying in control of your credit
  

It always pays to figure out the total cost of borrowing and when payments are due. Making the minimum repayment on time is a must, but paying more could mean you’ll benefit from an improved credit score, pay less interest in the long run, and have more to spend on the exciting things in life, like home improvements, hobbies and holidays.

Beyond your credit card, shopping around for better deals can reduce household bills, while keeping some money to one side in case of a broken boiler or burst pipe can prevent further borrowing and repayments.

It’s worth combining as many money management tactics as you can so you can take control of your finances and future. Late or missed payments create additional fees, which add to what you owe and can impact your credit rating.

Because banks, potential employers and other companies don’t know you personally, they rely on credit scoring to figure out what type of borrower you’ll be. So, if you can manage your money well, you’ll be more likely to get a better credit card, mortgage, loan, phone contract – in fact, all types borrowing will be easier.

Here are some simple steps to help you manage your credit repayments and keep your financial future looking bright.

Plan ahead

The best time to make a repayment plan is before you’ve even applied for a credit card. By doing your research and getting organised early on, you’ll find that managing your borrowing becomes so much simpler.

1. Find a credit card that suits you

Are you going to use your credit card to make purchases, improve your credit scoring, or consolidate multiple debts? Credit cards offer different benefits so it’s important you research the various options to find the one that suits your needs. If you don’t have a credit card and are wondering if you should get one, you can read our guide ‘Should I get a credit card?’ Or, if you have a card and aren’t sure if it’s the best one for you, you can use our card finder tool to compare options.

2. Work out the total cost of borrowing

Most of us know how much we spend on our credit cards, but it’s worth looking at the bigger picture to make sure you know what the total cost of borrowing will be. For instance, if you have a balance transfer or purchase offer, once it expires you will start paying interest. There could also be fees for making cash withdrawals. Being aware of the various costs involved in using your credit card is an important part of checking you’re getting the best deal.

Barclaycard could help you lower your cost of borrowing by transferring your outstanding credit card balance to a lower rate card.

3. Check if it’s likely your application will be successful

Making multiple credit applications in a short space of time can have an impact on your credit score, meaning you are less likely to be eligible for the best deals. You can use the Barclaycard eligibility checker to make sure you’re likely to be accepted before you apply. You can use it worry-free, as it won’t have any effect on your credit rating. When you make your actual application, other fraud and identity checks will be carried out to make sure you’re eligible.

4. Make sure you know when your payment due day is

Once you’ve been accepted for a credit card, make sure you know the exact amount you need to pay back each month and when, as late or missed payments can make managing your finances much tougher. Remember that if you can make more than the minimum payment each month, you’ll not only pay off what you owe faster, but you’ll save on interest too. Our Repayment Calculator will show you the difference a few pounds extra a month can make. You’ll also be showing the lender how reliable you are, which will lead to improvements in your credit scoring.

Budget, budget, budget

Budgeting doesn’t have to be complicated. By keeping track of your incomings and outgoings, you can keep on top of your finances and start reducing the amount you owe.

Get organised

Don’t rely on guesswork when it comes to budgeting. Work out your total incomings and outgoings each month to get a clear financial picture and don’t forget the pennies either – they all add up!

Be realistic

We all need to treat ourselves every now and then, whether it’s a brand new outfit or a tasty takeaway. Budget for these indulgences but just make sure you’re aware of how much they add up in the long run.

Shop around

Don’t be afraid to compare prices and change providers if they offer cheaper options on your household bills. According to energy regulator Ofgem, households in 2017 were typically overpaying on energy bills by £300 a year.