Cutting Costs with Credit Cards

The title might seem like an oxymoron, but truthfully there are ways you can save money by using credit cards. There are also ways for you to cut costs on your credit cards to make them work for you rather than the credit card company. Right now it is all about being savvy with the use of credit cards because money is tight. If you find yourself trying to make ends meet and struggle with the cost of goods because of inflation, then you need to check your habits with credit cards.

• Are you keeping a balance on your card? A lot of individuals have balances on their credit cards. The trouble is these balances aren’t doing them any good. Sure you can change cards and lower your credit score, but do you gain anything? By switching your credit card to a life of the balance deal you could potentially save several pounds a month as well as in the year. The life of the balance will still charge the 3 percent balance transfer fee, but you are paying a fixed rate until the balance is paid off. These cards are usually 1.9 to 4.9 percent.

• Can you pay the bill in full? If you can pay the bill in full right now, then you should do so. Once that credit card debt is cleared from the card you can start saving where it really counts. You can put the money you have been paying every month towards a savings account to earn you interest, or invest it in some type of stock. Now a lot of consumers don’t have this option, but even working down the bill at a greater pace without sacrificing your needs can help. Once the card is paid in full you can make the card work for you by not being charged interest.

• There are several gas rebate, fuel cards, flight mile cards, and other rewards cards that can help you. Instead of going for a card with a charity offering or helping your favourite Rugby team out, choose a credit card that works for you. The fuel card is a hot one right now because you can earn 1 to 3 percent back from purchases. It could save you around 150 pounds a year.

Credit cards are plentiful on the market. The terms and conditions may not be the prettiest, but if you are making the card work for you there shouldn’t be an issue. Consumers who have sacrificed annual percentage rate for a higher rewards programme are reaping the benefits only if the card doesn’t carry a balance. A card that doesn’t have a balance can’t be charged interest. So if a person uses the credit card during the month and pays it off before the statement due date will find themselves saving 20 to 40 pounds a month, which is upwards of 300 pounds a year. Consumers are being urged to take care in the use of their credit cards because of the credit crunch and inflation.

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