The modern world has brought about many great advancements that exist simply to make our lives easy on a day to day basis; this none more so than credit cards.
Credit cards provided a way for people to easily and conveniently make purchases without having to worry about carrying cash on them at all times. This convenience unfortunately comes at a price though. In this article we’ll look at ways you can save money on your credit card bills.
Exercise caution when consolidating
Credit card providers love to make it easy to switch over to them from their rivals. Wherever you look you’re sure to see fantastic offers on interest-free balance transfer, sometimes over 12 months or if you’re lucky over 16. But as with most things in life, if it seems too good to be true then it generally is.
When applying for a credit card that offers interest-free balance transfer you should pay careful attention to the transfer fee you’ll incur. Usually this is around 3% of the amount you choose to transfer – this will need to be paid when you start the transfer process.
Another important point to note here is that you must be 100% sure you can pay off the outstanding amount before the interest-free period is up, if you don’t then you could end up paying even more interest than you were on your previous card.
Talk to your card issuer
If you’ve held a credit card in good standing with one particular issuer for some time you should consider giving them a call and enquiring about reducing your interest rates. In this day an age good customers are no doubt hard to come by so most credit card companies are likely to relinquish a small amount of APR in return for your ongoing custom.
Avoid credit cheques
From time to time your may receive credit cheques from your card issuer – please exercise extreme caution when using these, in fact if you can try avoiding them altogether.
This may seem a little over board but generally the interest rate on cash withdrawals and credit cheques are far higher than they are on purchases and balance transfer. On the whole is just not worth paying that extra amount for the convenience they’ll serve.