Save Money on Your Credit Cards: Surprising & Easy Tips

September 19, 2013, BY

Save money on your credit cards with these easy and surprising tips. These money saving tips are so easy you'll use them every day!

Sometimes we choose credit cards for the wrong reasons and we can get into trouble, for more information on this, check out our blog on how to pick the right credit card for you.

save money on your credit cards

Pay Your Balance in Full

By paying your balances off in full every month every time, you won't have to worry about paying interest. And as many of us know, the interest fees can be incredibly high.

Another great idea is to pay off your balance right after you charge your card. While your credit card balance might take a few days to show up on your online banking, you can see the adjusted credit limit immediately after making a purchase.

You will also get the extra rewards your card offers that could definitely come in handy. From points to benefits, paying your balance in full will make your credit card work for you, not the other way around.

Know the Interest Rate on Your Credit Card

It always amazes me when someone is carrying a balance on a credit card that they don't know what their interest rate is. Find out what the rate is and find a way to pay less interest.

Whether you look for a balance transfer promotional rate, ask for a lower rate on your card, find a different product to carry your balance or pay it off faster, you will help yourself by saving money in the long run.

Whether you look for a balance transfer promotional rate, ask for a lower rate on your card, find a different product to carry your balance or pay it off faster, you will help yourself by saving money in the long run.

Use Balance Transfer Promotions at the Right Times

Balance Transfer Promotional Rates can be a tricky thing to manage but once you know how they work, they can be very helpful at reducing your interest costs so you can pay your debt off faster.

If you find an offer for a balance transfer at a great rate and want to take advantage of it, here are a couple of things to keep in mind.

  • First, make sure you ask what the rate is, for how long and what fees are associated to do the transfer. You may find out that paying off your Line of Credit with a Balance Transfer isn't worth it after all is said and done.
  • Second, make sure you pay your minimum payment on time every month during the promotion (and always, really) because sometime promotions can be deactivated because of delinquency.
  • Thirdly, make sure you don't mix retail spending and your balance transfer on one card. Often you will find that you will end up paying interest on your purchase, when you planning to pay them off in full.
  • Fourthly, make sure you pay off your balance by the promotion end date. Sometime Balance Transfers can have retroactive interest if this is not done, or the new interest rate could be much higher than what you were paying before.

The moral of the story is to make a plan. Figure out what your goals are and how you will deal with your debt once the promotion is over.

Ditch the Retail Credit Cards

One of the first things I learned about retail credit cards is that their interest rates are about as high as you can get on credit and offer very little benefits. These are cards you do not want to “credit and forget it” for a new big screen TV because that can end up costing you a lot of money.

Plus, if you collect points or cash back on your everyday credit card, you’ll earn rewards on these larger purchases. So you'll save money on your credit cards and get extra rewards.

Don't Make Cash Advances

Cash advances can be tempting but these advances come with a hefty price tag.

There is no interest-free grace period on cash advances on your credit card, so interest kicks in the day you borrow the money until the day you pay it back. Often credit cards will charge a higher interest rate and sometimes fees for these kinds of advances.

save money on your credit cards

Know When the Bill is Due

Missing your due date is an easy way to break your interest-free grace period and force you to have to pay interest when you may have intended not to.

Don't wait until the due date to pay, save money on your credit cards by paying it right when your statement comes in.

Reduce the Number of Credit Cards You Have

The more cards you have the higher the chance you can get into trouble by forgetting a due date or charging more than you can afford to pay. Reduce the amount of cards you have to only the ones you need and can manage.

Make sure every card has a purpose, i.e. Online Card with a small limit, Daily Spending Card, Balance Transfer Card and maybe an International Card.

Lower Your Credit Limit

Credit cards will always try and approve you for as much as they can, so if it’s too much for you, call and reduce it. If you know you’re the kind of person who will spend all the credit available to you, it’s probably a good idea to have it reduced. Save money on your credit cards by limiting the amount you can actually spend.

Stay Under Your Limit

Don't reduce your limit too much though, because going over your limit can have costly consequences. Overlimit fees range from $20-$35, so make sure you save money on your credit cards and stay under your limit.

Watch Out Of Country Spending

With most credit cards, if you are using a different currency (US, Euros etc.) there is often a Foreign Transaction fee associated with your purchases. It is typically 1.5-2.5% off your transaction and there is no way of getting around it.

Look for a card that doesn't have an FTF or minimize your spending on a credit card when you are outside of the country or shopping online in a different currency.

Using a credit card doesn't have to cost you money, it can actually make you money through its reward programs and benefits. You just have to use it and pay it in full every month by your due date and you can make it work for you!   

Save Money On Your Credit Cars By Using Them

It may seem strange, but using your card can actually help you save money on your credit cards. According to Save.ca, you should use your card to make occasional purchases to ensure it stays active.

Inactive credit cards are considered dormant after not being used for a year, and can sometimes be charged account maintenance fees

More Ways To Save

Want more ways to save money? Check these other money saving tips:




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