How Credit Cards Saved Me Money, NOT Put Me in Debt

How do you save money on credit cards?

That doesn’t make sense to many.

But as you may know already a credit card can be a double edge sword.

It can help you or hurt you.

We all know how it hurts you but if you're smart and pick the right credit card and use it wisely, it can save money. Here's how:

0% Balance Transfers

If your current credit card has a high interest rate, you can transfer the balance owed to one with a low-interest or no-interest at all. There are credit cards that offer you a 0% interest for a certain period. Be aware that there is still a fee which varies with each card. Assume you have a credit card with a balance of $5,000, 20% interest rate, paying $100 a month, it would take 107 months to pay that off. If you transfer that card to a 0% interest rate (+ 3% of balance from fees), paying $100 month, it would take only 52 months, saving you hundreds of dollars in interest in the long run.

Rewards Program

Now, if you use your credit cards frequently and pay it off full every month, you might as well take advantage of credit cards with rewards. Note that they have may have an annual fee but it is well worth it. This can save you money. There are cards that give you mileage, points (where you can use to buy goods), and even cash back. It is like a built in discount card.

There are even cash rebates up to 5% when you use the credit card at certain gas stations, convenience stores and groceries.

First Time Discounts at Stores

There are many stores such as Macys, Target, or Wal-Mart that offer their own credit cards. There is a good thing about them and bad thing. The good thing is they offer a first time discount right when you open them as much as 20% if not more. So if you're making a big purchase from them take advantage of their credit cards and open one up. The bad thing is it's only the first time discount, after that it's not worth using the card anymore because of the high interest rate it usually has.

The advice: 1. Open it 2. Make a purchase the first day to get the discount 3. Pay it off in full (to not be charged interest) 4. Never use it again