However, Mr Chong suggested: “Research credit cards that offer rewards that are interesting to you, so you can earn back additional value while spending that you won’t get when using debit cards.”
Utilise free credit score trackers
People can gain better control of their rating by signing up for a free credit score tracker like Credit Karma or Clearscore, to work out where and if they may need to improve.
Mr Chong said: “You can check your score for free without impacting it and follow their advice to improve it over time.”
Don’t apply for new credit products too often
People should be aware of how often they apply for new credit products, as regularly applying for new types of credit could result in multiple ‘hard’ checks against their credit file.
Mr Chong explained: “Hard checks on your credit score could make lenders and banks assume you are a high-risk applicant, either that you are short on cash or that you are racking up a lot of debt.”
Regularly assess finances
Sit down at the end of the month to read through credit card or debit card transactions to make sure they all look right and if anything looks off, people should in touch with their provider.
Mr Chong explained: “By staying on top of your bank statements, you are more likely to prevent overpaying for products and services that you no longer use or require, whilst also keeping an eye on unusual activity.”
He said that keeping an eye on what is in your account month to month also means people are “less likely” to constantly dip into their overdraft, which is what lenders will be “looking out for” when trying to determine whether the person is a reliable borrower.