3 Genius Credit Card Tips That Could Save You Money

Credit cards can provide a flexible source of credit and if used carefully, are a safe and secure way to spend. However, there can be pit falls to borrowing in this way.

To help avoid some of these problems, here are some credit card tips that could save you money:

Pay your debt off early

Credit card issuers can make their money from the merchant and the cardholder. They will take a % commission from the merchant for every purchase you make on the card and if you are the card holder you could be charged interest on your purchases.

According to the Money Advice Service, around 60% of people who have credit cards pay off their total balance each month. If you are lucky enough to be able to do this, you won’t be charged interest on your purchases.

If you cannot pay off your full balance, your card issuer will ask you to make a minimum payment each month until the debt is cleared. It is worth noting that the minimum payments may seem easy and manageable to pay off but in reality, you will be mainly paying off interest and clearance of the full debt could take many years. If you fail to pay off debts it can lead to a turbulent family life that may leave you needing assistance from chicagoareadivorcelawyers.com.

Move between credit cards

It is always worth looking for the best deal, so don’t be afraid to switch credit card providers. Try to find a card that offers 0% interest on balance transfers. Most of the major players will offer this feature, so check out how much you would be allowed to transfer and how long the 0% offer lasts.

Some will last for as long as 21 months without adding any interest to your debt, so make sure you do your homework before switching. Then, keep your eye on the calendar because you may decide to move again once the offer is over. Remember that most card issuers will impose a balance transfer fee so take this into consideration when choosing a new provider.
There is one very significant drawback with switching credit cards; you may not be allowed to do so.

If you have a poor credit rating, then you may be refused some of the best deals. What’s more, with every credit card refusal, your credit rating will take another hit. So, go for the best deals, but if you start to get refusals, you may have to adjust your goals or look for another alternative.

Getting credit can help you to get more credit

Being refused a credit card may damage your credit rating, as can having excess credit; but having no credit at all can also work against you. This is where a ‘credit builder’ card may help. They are particularly useful if you are looking for your first credit card or if you are trying to improve your credit rating. Some providers also offer 0% balance transfer deals but be mindful of all the pros and cons of credit cards before embarking on your credit journey.