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Saving More Money & Your Credit Cards By: Jonathan Bille  |
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 Most of us have at least one credit card, but how we use that card varies greatly from one person to the next. Some just use credit cards in emergency situations like flat tires on the car or when the kitchen refrigerator goes south. Others use credit cards for every purchase they make in an effort to rack up flyer miles or just to keep all purchases organized and itemized. No mater how you use them, credit cards can be costing you a lot of extra money.
First and foremost is the matter of interest on credit cards. Most people don’t seem to understand that interest on credit cards is compounded daily, not monthly. The debt on your card is refigured daily as interest is compounded on top of interest. That’s why when you only pay the monthly minimum, the balance never goes down.
Late payments cost more than additional money in payments. When you pay your credit card payments late, it can affect your credit score and how much you will pay on things like car payments. Always make sure your payments are on time.
Then there are the fees you never see. If you mail in your credit card payments and have it postmarked before the payment is due, that is no guarantee that the payment will be processed before the due date. You could be getting additional late charges that you don’t even know about. To avoid this you should be mailing out next month’s payment this month, or at the very least, make sure your payment is in the mail ten days before the payment is due.
Lower rates are available, for those who ask. What is the current interest rate on your credit card? Do you even know? Did you know that it can be raised without your knowledge? If you don’t know what your current interest rate is you should call and find out. If you do know and think that your rate is too high, you should call and demand a better rate. The credit card companies don’t want to lose you as a customer, and it’s very likely that if you call and ask for a better rate, you’re going to get one. If they don’t want to lower your rate just tell them that you’re going to do business with someone else. That usually gets them in the mood to negotiate.
The best way to make sure you’re not over paying for using your credit card is to make sure your balance is paid off in full at the end of every month.
The best policy is to not use credit cards at all, but if you must, follow these guidelines and at least you won’t be paying more than you have to.
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