How To Use Your Credit Card To Really Save You Some Money

Posted by Nick Niesen on October 29th, 2010

Today it is very common to think of credit cards as one of the major causes of so many people getting in debt. While that certainly is true for some, it may come as a surprise to you to know that by using a credit card in a certain way, that you could actually get sizable savings. Here are some tips for getting the maximum benefits of your credit card.

Get A Card With 0% Interest

If you have had your card for some time, then you have already passed the limit of getting 0% interest on it. Of course, if you regularly pay your credit card bills in full and on time, then you already are practically getting 0% interest. When you get a new credit card, you often are given a promotional benefit of getting the 0% interest for up to 15 months. After that, you either want to make sure you pay every bill on time, or get a new card.

Balance Transfers

This is another fantastic feature of a good new card. By putting the balance from other cards that you are paying a higher interest on, onto the new card, you can save a good deal of money from the interest. Before you sign onto the new card, however, check to see if there are any balance transfer fees, and how often you can make a balance transfer. Some credit card companies take away some of your potential savings by charging you as much as 4% for any balance transfers. Other companies will only allow you to use this feature when you sign up for the credit card.

Rewards

Apart from the other items that have been mentioned, here is where you can get a lot of savings, too. The key here is to know exactly what you can get rewards for. If you are looking for a new card, then make sure that you get rewards for the things that you buy the most. For instance, if you are a businessman or businesswoman, and you have to travel a lot, then you want to get a card that gives you a good percentage of rewards for either your air miles, your gasoline, and / or for your hotel and restaurant usage.

Daily Uses

Most credit cards also give you the opportunity to get a percentage back of your daily necessities. This includes things like your groceries, your prescriptions, and your gasoline. The reward amounts range anywhere from about 1 to 3% on this type of purchase.

The Key

As with any credit card, you need to pay off the entire amount in full each month. This is where many go wrong with their cards. Remember that unless you actually do this, then it is costing you much more for the credit card than it would if you use cash. By paying off your bill each month, you not only enjoy the convenience of not having to carry cash with you, but you could also see monthly rebates or reward checks coming to you. This is where it could start getting exciting, and you might actually start looking forward to getting your credit card bill in the mail.