Avoid using credit card cheques

If you receive credit card cheques from your card company, the best advice is to rip them up and put them straight in the bin as the interest charges for using them are immense.

The APR charged on credit card cheques is much higher than the standard APR, you're quite likely to face interest rates of 20% or more if you use them. Furthermore, the standard 50 days plus interest free period on normal card purchases does not apply to cheques, instead you'll be charged interest from the moment the cheque's cashed.

The Office of Fair Trading and consumer group, Which? have recently criticised credit card firms for sending out unsolicited credit card cheques to customers, particularly ahead of key spending periods, such as Christmas or the school summer holidays.

The Office of Fair Trading is calling for a change in the law which would force card companies to make the costs of using credit card cheques clearer.