Credit Cards – 5 Top Ways to Save Money With Credit Cards

Credit card companies have gotten very creative with their offers to consumers. This is a good thing for you because it means they are getting competitive. When companies compete against each other for your business, you can come out the winner.

It is now possible to shop around for a card that best suits your own lifestyle and shopping habits. Would you rather have a lower interest rate or see immediate savings on your bill? Are you a frequent traveler or would you rather see a rebate at the end of every month?

There are ways to save money with your credit cards and still get the features you need. The most important thing to remember is to educate yourself before filling out those applications.

Start with these 5 ways to save and as you do your research you will find many more.

0% Balance Tranfers

Compare interest rates on your credit cards. You may be able to transfer your balance from a high-interest card to one with a low-interest rate or even no-interest. Transferring from a credit card with a 19% interest rate to one with a 15.9% rate means a 3.1% difference. These savings can really add up over time.

Lower Interest Rates

Try to find the lowest interest rate card you can. This will definitely save you money in the long run. Make sure you do not pick a card just because it has the lowest rate though. Some cards have annual fees and service charges that would nullify any savings from lower rates.

Rewards Programs

Some companies have a Rewards points system. Keeping a low balance regularly frequent purchases can save you up to 5% on your shopping. Saving $ 5.00 on every $ 100 purchase may not sound like much but add that up over time.

Cash Rebates

There are credit cards that offer a 5% cash rebate if you shop at certain stores. These are typically gas stations, grocery stores and convenience stores. These rebates can be applied directly to your bill so you see the immediate savings. How many times a year do you shop for gas and groceries? At least 50 times a year, right? Spend $ 50 a week on gas and $ 100 a week on groceries and figure out the 5% rebate. At just 50 times a year that is a savings of $ 375 in one year. Add to that a 5% savings every time you shop at the convenience store and you are talking huge savings.

Frequent Flyer Miles

If you are a traveler, maybe the thought of reduced air-fares interests you. Some cards offer Frequent Flyer miles on your purchases that can be used towards your next big vacation. Put away the money you would spend for the air-fare, apply the frequent flyer miles to your tickets and you have extra money to spend.

There are many more ways to save if you take the time to compare offers and find the one that fits you.

Just remember to check the disclosure of terms and fees. If a card has a high membership fee or monthly service charge, you might not come out ahead.

Educate yourself on credit card terms, be honest with yourself about your spending habits and then compare cards to find the one best suited to you.

Source by Christine Simplot

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