7 Cost-Effective Ways to Save on Credit Cards

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Statistical reports prove that Americans are in love with credit cards. Almost 81% of American households have at least one credit card. They find these plastic cards as the most convenient tool for shopping and paying utility bills.

The credit cards make payments and expenses so convenient that the average credit card balance Americans have amounts to $8,000. That is, without a doubt, a great amount of debt.

So if you want to avoid debts and save more on your credit card bills, try to cut back on your expenses and follow the rules on how to save on credit cards.

1. Choose the best credit card

Not all credit cards are made equal. There is a specific credit card that will suit your needs. Getting this type of card will give you the rewards, services, and interest rates that will suit your needs.

For example, if you want convenient shopping but can’t afford to go the extra mile in shopping expenses, it is best to get a credit card that can offer you with reasonable credit limits. In this way, you will not be tempted to max out your card and accumulate debts you simply can’t afford to pay.

2. Get the reward credit cards that suit your lifestyle

Not all rewards are worth your time and money. Don’t get a credit card just because it can provide you with several rewards.

For example, if you aren’t a frequent traveler, a frequent flyer’s rewards credit card may not be useful. But if you are a frequent traveler, getting a flyer’s reward credit card can give you discounts as well as points that can be converted into tickets. This will be a saving considering the prices of airline tickets these days.

3. Go for the lowest interest rate

Consumers may not be aware of this, but one of the reasons why debts are getting higher is based on the interest rates.

If you think you can’t pay your credit card bills on time but are willing to pay your balances in another period, it is best to get a credit card with lower interest rates.

4. Keep a record of all your expenses

Credit cards are convenient to use but it doesn’t necessarily mean that you simply neglect your responsibilities. One of which is to keep a record of all your expenses.

In this way, you will be able to identify which purchases weren’t necessary at all. So the next time around, you will know what to avoid.

5. Ask for a lower rate

Surveys show that almost 55% of those who participated in the survey were reported to have trimmed down their interest rates simply by requesting their bank or their credit card companies to act accordingly.

If you have been a loyal customer and pay your bill on time, it wouldn’t hurt you to call your bank or your credit card issuer and ask for a lower rate. With lower interest rates, you can save more.

6. Do not keep balances

Never let your balances stay on your credit card bill statements for long. This means that if you have accrued balances for the month; try to pay them right away.

Paying your minimum balance only won’t do one any good. This might trigger further debts. Besides, interest rates only apply whenever you’ve got balances. And interest rates are additional expenses for you. If you pay your balances monthly, you will not be charged with interest rates, so you get more savings.

7. Be wary of cash advances

Never take cash advances on your credit card, if it isn’t an emergency. Financial experts say that cash advances reap higher interest rates compared to the ones that you have on your credit card purchases.

A combination of these two will certainly bring you to debt problems. Besides, cash advances don’t take on certain periods, so that means the charges will happen instantly. That would be very hard if you are not prepared to pay off your balance immediately.

In Conclusion

All of those things are catered to assist you to cut back your expenses and save more on your credit cards. These things have been proven effective. It is now up to you if you’ll heed this recommendation or not.

Just remember, your actions will always tell you the kind of life you want to live, so better make good choices and start saving now.