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How to Save Money on Credit Cards

Posted on | January 26, 2012 | No Comments

Many people have a great deal of credit card debt. Credit cards and their fees are one of the biggest drains on an average American’s budget. Fortunately, there is a way to save money on high interest rates AND save money on credit card payments. Below are 4 tips to do so!

1. Negotiate

Don’t be afriad to negotitate with a lender! Sometimes, individuals can save themselves a great deal of money negotiating with their credit card companies for a lower interst rate. One can call the lenders directly to ask for lower rates. Some people have good luck with this particular technique, and can save themselves thousands of dollars of interest. The worst thing that’ll happen is that someone will say no, and you’ll hang up and never speak with them again!

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2. Pay On Time

ALWAYS pay a balance on time. Late charges on credit card bills can run as much as 30 percent, so the wise consumer will pay their bill as soon as it arrives. Better yet, never carry a balance if you can avoid it. For those who have credit cards that offer reward points, cash back, or airline miles, this probably isn’t wise. Always take advantage of a credit card incentive, but either go home and cancel the credit card RIGHT AWAY or pay it off, if you know that there will be more rewards in the future. This way, you may be able to have the card companies paying you for your patronage, rather than the other way around.

3, Shop Around
Always look around. You never know where you’ll find something better. Even if you’ve heard something about a particular company, each company has many different cards. Look for cards with reasonable interest rates online (google a company plus + low interest rate, or try out forums). Do you do a lot of international travel? Some cards are better than others for this. Do you need a lot of money for the Holidays? Some double their rewards over this season. Some credit cards will give you rewards on gas, movies, food, but you have to do the research to find out what’s out there!

4. Low APR

Look for a credit card that has a consistently low interest rate and APR. Sometimes, consumers are suckered into cards that offer a zero balance interest, only to have the interest rate skyrocket after an introductory period. Don’t be one of those who ends up paying a high rate card six month or one year down the road. Do your homework, and settle for a credit card with a reasonable interest rate.

5. Pay Fast

The other way to save money on credit cards is to pay your credit cards as soon as they are due, rather than waiting until the last day (because if your computer freezes, power goes out, the server is down, or you type in the wrong date, you’re S.O.L). Sometimes, you can get rewards by signing up for an automatic debit each month, and then this wouldn’t even apply to you. Look into this!

Cameron Warner likes to write about personal finance and save money at www.dentalinsurance.net.

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Category: Credit Card Debt, Credit Cards, Credit Information, Finance

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