Money Saving Tips for Credit Cards

TIP 1: CREDIT CARDS AS TOOLS

Credit card debt is probably the most common form of debt it is also the most costly. Credit card repayments are probably costing you an arm and a leg, but there are simple measures you can take to reduce the cost and keep more money for yourself.

Most people use their one credit card for a variety of purchases. You can save money, however, by using a range of cards for different purposes.

If you have a card or are looking for a new one you should shop around. Compare the rates and find the best one for you, usually the lower the APR the better. Even if you already have a card switching can help you find a better rate. Use our search engine to search over 95% of the market, and save yourself time and money.

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TIP 2: 0% BALANCE TRANSFERS

If you carry a debt on one or more cards on which you are paying interest consider switching to another card. Many card issuers will offer you a 0% on balance transferred debts. This allows you a period of time to pay off your debt with non interest, if the term runs out you can switch to another card and keep the process up until the debt has been repaid. There is, however, some precaution you should take when using these cards. Never buy anything on them while repaying your 0% debt. Chances are the card provider will insist you repay your 0% off before the new purchases meaning you’ll be racking up interest for some time.

TIP 3: 0% ON NEW PURCHASES

Many cards offer you a 0% rate on all new purchases for up to a year. These are great for debts you think will take you longer than a month to pay off.

TIP 4: CASHBACK

If you pay off your credit card debt each month but don’t have a cashback card you could be missing out on hundreds. Cashback cards are better to use than debt or switch cards for purchases as you earn a percentage of the money you spend back, which is in effect a massive saving on everything you buy.

This card is best used by people who pay their debt off in full everymonth.

TIP 5: STORE CARDS

Store cards, like Tesco and Sainsbury’s, should be avoided at all costs. They usually charge a much higher than average APR and offer little in recompense.

What they do offer can be taken advantage of to make real savings. They often offer bonus points for shopping, so buying with the card and paying the debt of immediately can help you to rack up the store points. Store cards may also offer a massive discount on your first purchase, put off getting one until you need to buy something expensive and take advantage of the deal.

TIP 6: SAVE MONEY ABROAD

The exchange rate is the most important factor to consider while on holiday. Credit cards can be the best way to spend abroad and save money through a better exchange rate. You can get a special rate because Visa and MasterCard buy currency in wholesale and pass the savings on to you.

Most credit cards ruin this saving by adding on fees and, if you take out money from an overseas cash point, charging you a percentage. There are cards that specialise in overseas spending and getting one of these cards can make you massive savings.

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