High credit card interest rates can be crippling. Admittedly, credit card debt is sometimes a necessary evil, but the accompanying high rates aren’t. Keep reading to learn how you can save money on your credit cards, reap better credit rewards and reduce your overall credit card debt.
The cash advances
First of all, avoid all sorts of cash advances if you know what’s good for you. Most cardholder’s agreement statements contain terms where card companies will charge rates as high as 10 or even 20% for cash withdrawals, which is way more than the usual purchase rate. That does sound like a scam to anyone, so keep your distance from any mention of it, especially the underhanded ones.
Credit card interest rates
Of course, you would want to use the card with the lowest rates, but that is easier said than done. A lot of people have been hit by interest rates as high as 20%, which is insane considering that there are those that offer 10% interest rate. That piece of plastic is not really a status symbol more as it is a surrogate for whatever you have in the bank, whether you are rich or not. Using a credit card is more of a symbol saying that you are a responsible adult who can control his desires. Heed this unwritten rule and get the one that you can deal with best.
But then again, beware of promises that are too good to be true. The credit card industry lives and profits on your money, so you have to be careful whenever you meet up against really low introductory rates. Those are merely set as such because they want you to apply. Some credit card companies, once they have you in their clutches, they will make use of convoluted reasons and excuses in order to get off the hook of defrauding you with unsound financial tactics. Always read the fine print and learn your way around all that confusing banking jargon. Ask for help from people who understand banking language better than you do. There should be no shame when your money is involved.
Your credit score
Once you do have your credit card, maintain a good rating and do not stray from it. Splurging sporadically is as good as having explosive diarrhea, and splurging consistently is even worse. Always pay your credit card bills on time and keep balances to one-third at most, which is a good rule of thumb. Show the bank that you are a responsible and honorable customer so that they will keep serving you to the best of their abilities. Nothing says “irresponsible” and “felon” than an unpaid credit card bill.
Finally, you can also go for a reward card if you actually can make use of it. There are those who have a great aversion to cards of any financial nature, and that is understandable. The rule here is to stick to what you are comfortable with. Since reward cards have slightly higher rates, make sure that you can actually afford it before getting one. But once you do, you can avail of these rewards through the points you can earn with your card, which is not a bad deal at all.