Money Saving Tips - Credit Cards
Simply NOT USING a credit card or Shop is probably going to be the simplest way of reducing it's costs as not only are credit card interest rates high, they also encourage impulse buying for things that you don't really need.
However, given that there are a few occasions when having a Credit Card is useful, here are some money saving tips for credit card and Shop card users.
Stop Impulse Buying
Credit cards encourage impulse buying and give you the impression of providing a source for money, but this is wrong - They are a source of DEBT. Whenever you are considering purchasing something on your credit cards, STOP! and ask yourself "Do I REALLY need this?" and "Is this the best way to purchase it?". Stemming unnecessary expenditure will make huge savings.
Select the Right Credit Card
Make sure you select the right credit card for your purpose. Take a look at Choosing the best credit card for more details.
Maintain Good Credit
In order to get the very best credit card deals you need to make sure that you maintain good credit. That means no late payments and a high level of financial dicipline. You need to be honest with yourself, if you don't have strong financial dicipline - do not use a credit card, period.
Never Carry a Credit Card Balance
Always pay off your balance as soon as you receive your statement. This way, as long as you selected a reasonable credit card deal, you should have no interest to pay. This will save big time.
Pay off Your Credit Card Debt
If you are carrying credit card debt, consider paying it off completely if you can. There are much cheaper ways of borrowing money. Have a look at "Eliminate Credit Card Debt Now" for a strategy to pay off your cards.
Pay more than your Credit Card Minimum Payment
If you are carrying credit card debt but cannot afford to pay it off, always pay more than the minimum. Pay as much as you can each month, have a look at our Credit Card Debt Calculator to see how much diference just a small increase in your minimum payment will make to the interest you pay and how long it takes to pay off your debt.
Take Advantage of Credit Card Rewards & Incentives
Many Credit Cards offer incentives and rewards to the users of their cards. Cash-back, discounts, air-miles etc. Fully utilizing these benefits can save some money.
Transfer Balance to lower rate
Take advantage of beneficial balance transfer rates and fees to make big savings on interest.