If money is borrowed on a credit card it can be very expensive and for anyone with multiple credit card balances the repayments can be exorbitant. If the credit card user is just paying the monthly interest it can be challenging to clear the outstanding balances.

A few ways by which a credit card owner can improve their credit history are:

Look out for these when selecting a credit card

The first thing is to consider the APR and look for fees for transferring any balances on other cards. If it is offering zero interest what is the time limit for it. Also, check what would be the applicable APR after the zero-interest period ends. Also, look at the credit limit offered. While zero interest is ideal getting a lower rate is also fine as it can help to repay any large balances on the card before a higher rate is applied.

Look for a lower rate card

There are balance transfer cards available with zero interest for a specific period. If you can move all your other cards balances or at least the most expensive cards balances, it will help to save on expenses. Switching to a card with a zero-interest period will make it easier to clear balances and possibly close the costlier cards accounts.

Shop for the best APRs

Instead of applying for a new credit card, you could try to get the best offers on your existing card. Unfortunately, interest-free deals are only available on new credit cards. However, because of the intense competition between credit card companies, they can be willing to offer special deals to existing customers. Call them to enquire if they can offer a better APR and raise your credit limit so that you can transfer balances.

Repay the balance of the most expensive cards

If you own multiple credit cards and have overdrafts clear the latter first as they are the most expensive. Look at the balances, the APR (annual percentage rate). Clear those with the highest APR at the earliest.

Pay the minimum dues on time

Missing minimum due payments do not only impact credit score they can add up to the full balance on the card. While clearing the balance is ideal every month, if you are unable to clear the balance at least repay the minimum dues on time. Missing monthly payments also increase the risk of losing out on introductory offers. Have a direct debit so that credit card repayments are done on time.

You could consider snowballing

If you have several card balances that need to be cleared a method known as snowballing could be applied. In this, the minimum is paid on all every month and the one card that has the highest balance is cleared every month. Choose the one with the highest APR whether an overdraft or credit card. This will help in reducing the amount spent on interest payments. Clearing the card with the largest balance first will help to pay less interest every month. The same process could be applied with any other card with large balances.