What are a few tips that can help you save thousands... - Other Questions


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Credit Card Applications » Questions » User Questions » Other » What are a few tips that can help you save thousands of dollars on your credit card?

What are a few tips that can help you save thousands of dollars on your credit card?

Answered on | Updated on August 2nd, 2010
The content is accurate at the time of publication and is subject to change.

Many people regret opting for credit cards because of the debts they incur over a period of time. They end up losing money hand over fist because of the various charges levied on their accounts. Finally, unable to bear the brunt, a vast majority end up closing their credit cards. However, closing cards is not the right answer. The right answer lies in choosing the right credit card and using it wisely so you can remain in the good books of the lender for long. If you are wondering if this is going to be really difficult, then, you are in for a surprise. Saving money on your credit cards is not rocket science. There are a few simple tips that you need to keep in mind so you can save a lot more than expected.

First of all, if you hold credit cards whose interest rate is over 12%, then, you are surely paying more than most of the others around you. There are innumerable banks that offer credit cards at rates lesser than 10%; it is these types of cards that you should opt for. Do you groundwork well before you decide on the bank and the type of card from the bank you intend to apply for. This will help you save up to $1000 a year.

When you incur debts that are way above what you can currently repay, consider taking out a part of the money in your savings account to clear off the debts on the credit cards. Remember, the credit card lenders will charge you between 9% and 15% on the debts on your credit cards; however, the bank will pay you only 1% interest on the amount that you have saved up. Hence, take a part of the money and clear off your debts. It is important to remember not to empty your savings account since you never know when you might need it again. This will enable you to save up to $500 a year.

Finally, when you apply for cards, go in for the ones that have great promotional offers. You will be able to save a lot of money during that introductory period. Also, find out details of the duration of the promotional offers and the rate of interest after that. This will help you save at least $50 in the first year.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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