Smart Ways To Use Credit Cards?

Credit card companies keep offering low interest rates as a promotional strategy to keep their customers intact. At times, they even offer interest as low as 0.0%. If you get such an offer, just call your current credit card company, if it is charging higher interest rate. Tell them that you have got a better deal and you won't be surprised to see them lowering their rates too to keep you as a customer.

There are some smart customers who keep juggling credit cards to pay low interest rates. Just be careful to note when the promotional period ends because the rates go sky-high and you need to be prepared. Also keep eyeing credit cards that offer perks. It could be cash back for every purchase, restaurants discounts, frequent-flier miles, Internet access, and more

These smart tips will help you use your credit card wisely. 

Ways To Use Your Credit Card In An Effective Manner

There are different ways to use your card. First consolidate the outstanding balances on your credit cards into one loan or onto one credit card that has a lower interest rate than the ones you are currently paying. It is a simple process to do a balance transfer onto other credit cards that have low interest rates. 

Take an example; you have $100 in outstanding credit card debt and the average annual percentage rate (APR) on that card or cards is 18 %. If the outstanding balance remains at $100 then over the course of a year you would pay approximately $18 in interest charges alone. If you consolidated your credit card debt into a single loan with a lower interest rate or if you did a balance transfer onto a credit cards with a low interest rate you would save a significant amount of money. 

If the new loan or credit card had a 9% APR then you would save roughly $10 in interest charges over the course of that same year. $10 for a debt of $100, if you think about a debt of $10,000. This trick will save you $1,000 over the course of that same year. Second trick: If you are asked to pay annual card charge, tell your card company that you are quitting the card itself. There are many credit cards that don't charge a fee.

Most credit cards will remove the fee if you simply ask. But the credit cards offering you airline mileage may not budge even after your veiled threat. 

Conclusion

At times some introductory offers can save you money. Many times, credit card companies offer a low "introductory" rate that will give you a low interest rate on a credit card for only a short period of time, usually 6 months. Bur there is other side to that lucrative offer. The low introductory interest rates sometimes seems really good, but might actually cost you in the end with higher fixed interest. 

If you plan to pay off your balance before the introductory interest rate expires, credit cards with low interest rate can save you money. But if you want a credit card for longer period, a fixed low interest rate credit card might be the right choice for you.