Top 10 Ways To Save Money On Credit Cards
Author: Jeremy Zongker

The following tips are basic principles about obtaining and
using credit cards that can save you some serious cash and keep
you out of debt.

10. Have at Least One Credit Card for Emergencies – While we
highly recommend having a rainy day fund for emergencies rather
than relying strictly on credit cards, having a credit card with
a low interest rate "just incase" is a good idea.

9. Rewards are not so Rewarding – Rewards can be a good thing,
but only if used correctly. Rewards cards typically have a
higher interest rate than regular credit cards, with the value
of the rewards justifying the extra expense. The rewards are
not usually as valuable as you may think. Typically the value
of the reward is around 1 cent per dollar charged and often the
rewards expire at the end of the year if you don't use them. If
you pay off your balance in full each month and charge a lot
they can be worth while, otherwise you're better off with a
non-rewards card.

8. Have Two Credit Cards – If you do plan to take advantage of
rewards, we recommend you carry two credit cards. The rewards
card for making your daily expenses that you will pay off in
full each month and a second card with the lowest possible
interest rate to cover any emergency expenses when you won't be
able to pay off the balance in full by the end of the month.

7. Shop Around – Don't apply for the first "pre-approved" offer
you receive in the mail or any for that matter. Do the research
for yourself. There are plenty of sites such as CreditorWeb.com
that allow you to compare hundreds of credit card offers with a
simple search. You'll get the best deal by shopping around.

6. Read the Terms – The terms and conditions are the equivalent
of the disclaimer you hear on car lot commercials. It cuts
through the hype and reveals the true terms of the credit card
such as what happens when you miss a payment and what you're
really getting from the rewards. Most terms are not that long,
usually around one full page, it's worth your time to read
them.

5. Ask for a Better Rate – Once you have been a credit card
customer for a few months call them and ask for a better rate.
They won't laugh at you, they get hundreds of these calls every
day and if you've been a good customer it usually will work.
Credit card companies work hard to obtain you as a customer and
they will work hard to retain you.

4. Pay Off Full Balance Every Month – All credit cards have
high interest rates compared to other types of loans. You
should never plan to carry a balance on a credit card. If you
must make a large purchase that you do not have the money for
at the time, obtain a loan or a revolving line of credit from
your bank. You will save a bundle on interest rates.

3. Work with Retention Department – If you ever feel you are
being treated unjustly by your credit card issuer, a simple
threat to leave will get you transferred to the retention
department. This department will be MUCH more helpful to you
and will usually do whatever it takes within reason to get you
to stay.

2. Do not get a Cash Advance – This is the second worse thing
you can do with a credit card, short of missing a payment is
getting a cash advance. The cash advances usually come with a
very high interest rate. What makes it worse is the fact that
with most companies this higher rate credit will not get paid
off first, or even in the order that you took it out. They will
apply your payments towards all the lower rate purchases and
will only begin paying off your high interest cash advance will
all other items on that credit card have been paid off.

1. Never, EVER Miss a Payment – This is the absolute worse
thing you can do with a credit card. Not only will you incur a
late fee, but your interest rate will also skyrocket. In
addition it will be a negative blemish on your credit report
which can cause the rate on any other loans or credit cards you
have to increase as well as insurance rates. It also makes you
less likely to get approved for future credit.


About The Author: This article provided courtesy of
CreditorWeb, http://www.creditorweb.com .