6 Ways to Save On Credit Cards

Most of the credit savvy among us has been capable of using credit cards to their advantage to optimally and wisely save money even when charging on their credit cards.

If you use your credit cards carefully, you might attain much by using them, instead of when you just stick to using cash.

Here are the actual strategies you can use to come out ahead by using credit cards:

1. Use award cards only if you can pay your balance fully

Award cards have higher interest rates compared to regular credit cards.

For example, it can only make sense to get American award cards if you can fully pay your balance every month, with no exceptions

If you cannot commit to that kind of schedule, it is preferable to opt for lower interest cards.

2. Pay on time and pay more than the minimum amount

By simply exercising excellent payment habits, you will avoid excessive finance penalties and charges imposed upon your account.

It is the perfect way to pay off any monthly balance fully, but if you cannot swing it, then being able to pay more than the minimum amount will help you save a bit in interest over the longer-term.

Also, some specific credit cards will award you for this kind of good behavior.

3. Carefully consolidate your credit card arrears.

Many customers use a common method to cut what they owe on their credit cards

They utilize balance transfer cards, which give over zero percent or lower APR on the amount moved over, though for a limited introductory period. Ensure that you do a cost-benefit analysis before implementing this strategy. Most credit cards nowadays have a balance transfer charge (normally around three percent of the amount you owe) that you will need to repay when you do the transition.

You ought to also check if you will be able to clear your arrears fully before the promotional zero percent rate period is over to avoid any rises in the credit card rate.

If you cannot make this one function, it might still be worth performing a balance transfer if the new credit card carries a lower APR than the older one.

4. Take care when contributing to credit card arbitrage systems

Since today is more limited on credit card set up, it is now more difficult for shrewd cardholders to implement any cash making systems using their credit cards.

In the previous years, it was relatively easy to create money with cards by simply taking borrowed money and channeling them into a higher interest savings account that led to an attractive yield.

Since savings account no longer earn such huge returns and the balance transfer cards with excellent terms and conditions are now dwindling in number, this plan is not anymore as lucrative as it was before.

However, they are individuals who still play this game, but it is a game that needs top-notch structural skills since any late payment can cost you more than you would earn from this strategy.

5. Always carry an extra credit card

Here is a wonderful compromise: if you want to take advantage of credit awards, you can still possess an awards card but utilize it only for those items that you will be able to pay for each month entirely.

6. Avoid depending on credit cards to serve as an emergency

Some individuals do not have emergency fund and end up depending on their collection of cards to bail them out every time the urge arises.

Nevertheless, with no savings, you are likely going to retain your balance as soon as you utilize it for any unexpected costs- and retaining your balance means paying additional cash in interest.

So, bear in mind that while relying on your credit cards as a backup is a bit tempting to do, it will be costly in the extended run when you charge up a storm.

Credit cards can sometimes be a bit hand.

Pop things on the card, make sure you pay it off at the end of every month. But at times, it is not easy to clear the whole balance.

Credit Card interest can be excessive, and abruptly the amount gradually starts increasing.

Thus, grab the bull by its horns. Trim the expenses.

And watch the payment dwindle. Handle a knock-out blow to your arrears and be able to save huge amounts of money.

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