People often think that credit cards are one of the main reasons why so many people get into debt. Some people do think that, but you might be surprised to learn that if you use your credit card in a certain way, you can actually save a lot of money. Here are some tips that will help you get the most out of your credit card.
Get a card with no interest on it.
If you've had your card for a while, you've already reached the point where you can no longer get 0% interest on it. Of course, if you pay your credit card bills on time and in full every month, you're already getting close to 0% interest. When you get a new credit card, you may be able to get 0% interest for up to 15 months as a special offer. After that, you should either make sure every bill is paid on time or get a new card.
Transfers of Money
This is yet another great thing about a great new card. You can save a lot of money on interest if you move the balances from other cards with higher interest rates to the new card. Check to see if there are any balance transfer fees and how often you can do a balance transfer before you sign up for the new card. Some credit card companies charge up to 4% for balance transfers, which takes away some of the money you could save. Other businesses won't let you use this feature until you sign up for a credit card.
Rewards
In addition to the things already mentioned, you can also save a lot of money here. The most important thing is to know what you can get rewards for. If you want a new card, make sure it gives you rewards for the things you buy the most. For example, if you are a businessperson who travels a lot for work, you should get a card that gives you a good percentage of rewards for your air miles, your gas, and/or your hotel and restaurant stays.
Everyday Uses
Most credit cards also let you get a percentage back on the things you buy every day. This includes things like your groceries, your prescriptions, and your gas. On this kind of purchase, the reward amounts range from 1 to 3 percent.
The Main
Just like with any other credit card, you have to pay off the whole balance every month. This is where a lot of people get their cards wrong. Don't forget that if you don't do this, it will cost you much more to use a credit card than it would to pay with cash. If you pay off your bill every month, you not only don't have to carry around cash, but you could also get rebates or reward checks every month. This is where things could start to get interesting, and you might even start to look forward to getting your credit card bill in the mail.
