Save Money Credit Cards - Doesn't Make Sense But They Exist

Does it make sense that you can save money with credit cards? Seems kinda like an oxymoron when you think about it. We charge items to our cards and are charged interest, this costs us money so how the heck can a card save us money? Let's look at it from a different angle, could you be saving more money then your current credit card is costing you? Probably, but have you ever really take the time to look? Probably not, most people just accept their credit card interest rates for what they are and never think twice, how ever most people are paying twice as much interest each month on their credit card balances then they really need to. This article will look at how you can get a credit card that will save you money, and what to steer away from when shopping around.

It's all about the Interest Rates

Different credit cards have different interest rates. Why doesn't everyone have the same rate? Some of us have different credit ratings, some cards come with reward options for using it, and some of us just plain don't know any better. No matter where you fall in this description, if you're carrying a balance on your credit card each month you could be saving yourself some big dollars. Low rate credit cards can come as low as 0% as an introductory rate, of course this rate won't last forever but compared to what you're being charged now it's a heck of a difference.

The best low interest cards to save money are those that either have a very low introductory rate with a so so fixed rate or find a card that has a low fixed rate right from the get go. Cutting your interest rate in half on your credit card can effectively save you half the money in interest.

Paying off your debt faster to

Switching credit cards to a low interest option doesn't just cut down on your interest costs, in turn by doing so more of your monthly payments (if you keep paying the same monthly amount) will go towards the principle. This means you won't carry that balance for as long and can become free from the debt man faster. This may not be a goal of everyones but I assure you it is one of my goals. So this should be looked at as a big benefit to lowering your interest rate and saving money on your credit cards.

There must be a catch

I want to let you in on a couple of items to watch for when you're applying for a money saving credit card. First, read the fine print, all of it. I know it's small, and hurts your eyes, but that won't be the only thing it could hurt. Since some credit card companies offer introductory rates it's important that you know what your card interest rate will be after the introductory period. If you're trading credit cards to have a low rate for a month or two, but then will be charged a higher rate then you're already paying I wouldn't bother switching in the first place.

It's also worth while looking at what you'll pay for cash advances as well. I don't suggest you use your credit card for cash advances, but if you had to in an emergency it's good to know that you won't get fleeced on interest charges. Look for a card that doesn't charge much of a premium over the standard purchase rate for advances.

So all in all what should you be looking for? Try to find a card that is well below 10% for the introductory rate, especially if you have balances to transfer. This will save you the maximum amount of money on the balance you already owe. Also try to find a card that's fixed rate isn't over 10% either. This might be difficult to find, and the companies that offer these low low interest cards are often very picky about who they approve for credit.