These days, credit cards give you a lot of ways to save money and get other deals at lower prices. Many people don't use them, so they end up paying a lot more than they should for things they charge on their credit card. Here are some ways you can get more out of your new credit card and make it work for you.
At first, you should look for a credit card that fits your needs the best. Choose a card that gives you rewards or cash back that you can really use. For example, if you drive a lot and your biggest monthly costs are gas, hotels, and restaurants, you should get a gas card or driver's credit card that gives you rebates on these things. If you fly a lot, you should get a credit card with air miles that also gives you discounts or points on hotel and restaurant bills. You could also get points from either of these cards that you could use to rent a car.
Other cards will give you a small percentage, usually between 1% and 3%, on gas, food, and medicine that you buy. Aside from that, you get credit for whatever the card is good for. Here's one more way to save money. You can save even more money by putting things you buy often on your card. The important thing to remember is that your savings depend on you paying off the balance every month and on time. If you don't, your interest and possibly late payments are probably eating up your savings.
When getting a new credit card, the first thing you should look for is one with a low interest rate. After the introductory period is over, this rate will be added to your monthly payment. If you regularly leave a balance on your credit card, saving just one or two percent in interest can save you hundreds of dollars each year. To get a really good rate, you will need a good credit score, though. Make sure you pay on time, too, because even one late payment can ruin your chances of keeping the introductory offer. After that, you'll probably have to pay the full amount of interest.
If you already have balances on other credit cards, you need a feature that lets you transfer those balances to the new card. Look for a card with a long introductory offer of 0% APR interest for at least a year and put your balances on that card. Avoid cards that charge you to move money from one card to another. Then, pay the same amount on your monthly bill as you were paying on the credit card before. This will help you pay down the principal faster than if you had interest on it.
Check to see if there are any fees, and get a credit card with as few fees as possible. This will require you to spend some extra time reading the small print. You might be surprised by what is written (or online) there. Then, look at all the other features of the cards you think might be good and see how they compare. After that, you should be able to get a credit card that gives you all the benefits that a good credit card should.
