Save Money On Your Credit Card Bills.
Pay early and pay less! You can save on monthly finance
charges if you pay your bill before the grace period
begins. We have listed some of the ways that you could
save some money on your credit
card bill. These money saving tips
will like to help you to reduce your daily expenses.
look at how credit card companies make money.
Interest charged on outstanding balances
The number one money-maker for credit card companies
is interest charged on outstanding balances. Credit
cards charge far higher rates of interest than
most other types of loans.
If you pay your credit card bill late, you can
get hit with a penalty fee for late payment.A
survey of 140 credit cards this year by Consumer
Action found that 85% of the banks raise interest
rates after customers pay credit card bills late.
for exceeding your credit limit
If you charge more to your card than the credit
card company has allowed, you may find that the
charges go through but you get hit with a penalty
fee for exceeding your credit limit.
Some credit cards charge an annual fee. They get
that money up-front, before you start using the
Money on Your Credit Cards
Because credit card companies make money from
people using credit cards, they encourage their
customers to spend. For many people, that means
that credit cards encourage them to overspend.
Overspending means at best that you don't save
enough, and at worst that you get into debt.
are some ways to do prevent over spending:
1 Keep a running tally in writing of your weekly
or monthly spending versus your budget, and update
it before each purchase.
2. Limit your credit card use to certain categories
of spending. Use your credit card to pay only
when there's no risk you will overspend. So use
it for regular bills, groceries, and expenses
where you trust yourself. For areas where you
suspect you overspend or spend on impulse, use
more than the minimum
more as you can. At $180 a month, it'll take about
four years before you're free of that $6,000 debt.
But at $300 a month, you'll be done in two years,
if you pay all new purchases in full. To see how
long it will take to get out of your credit card
hole, use the calculator at bankrate.com.
money by paying off your credit card balance each
Pay your credit card bill the day it arrives.
That way, you won't forget and you won't rack
up interest charges. When the statement comes,
don't move it to your "current bills"
pile. Get out a stamp and write a check, or take
care of it instantly online. Alternatively, arrange
to pay the bill automatically from your bank account.
Avoid paying by phone; there's often a fee.
own more than one rewards card.
Rewards cards are tricky. If you choose a card
with an annual fee and pay interest, it will probably
cost you more than the value of the rewards. Airline
cards charge higher rates than general-purpose
Visas and MasterCards, so they're a bad choice
for people who carry balances.
one no-annual-fee rewards card. Pay the bill in
full each month and the "gifts" will
be truly free. Read the fine print, so you'll
know which purchases are eligible for points.
Unless you're a travel bug, choose a cash-back
card, giving you a rebate of, say, 1 percent or
more of what you charge. That's a no-hassle payback.
for no fee credit cards
Look for no fee credit cards (be sure to consider
all the other factors such as grace period, interest
rate, etc., as well). Even if you are charged
an annual fee, you can may be able to get the
fee waived by calling your bank and asking them
to remove it.
Your Credit Card Bill
Consolidating your credit card bill may save money
by reducing your interest and helping you pay
the debt off faster. It will definitely simplify
your debts because you'll only have one bill to
you're considering consolidating your credit cards,
you have several options. Before you make a decision,
carefully consider the costs involved and whether
any of these methods will reduce both the total
interest paid and your current expenses.
money from credit cards
Credit cards offer great rewards for spending
money that you would have spent anyway. Rewards
are generally tied to how much money you charge
to your credit card. Some credit cards offer air
miles, other cards offer cash refunds.
card purchases are protected under the Fair Credit
Billing Act. This law gives the consumer the right
to withold payment for damaged or poor-quality
goods purchased with the card. The consumer must
attempt to resolve the disagreement with the merchant
before asking the credit card company to withold
smart about transferring your balance to a bargain-rate
When you get the new credit card, drop it into
a drawer. Make payments toward your transferred
balance each month, but keep shopping with your
old card, which now carries no balance. If you
pay the bill in full at the end of the month,
you'll incur no new interest charges. So wait
to switch to the new card until after the bargain
period is up, which is typically in six to 12
months. At that point, your card payments will
usually get applied to your new purchases first.