Saving Money on Credit Card Interest Rate and Not Rate Only

The statistics of 2007 shows that the average credit card debt in a typical US family equals to over $ 7,000. Not that shocking, you say? But what would you say if you learnt that wise credit card usage can actually save you up to $ 1,500 a year?

Now count how many years you have to go until your retirement. Say, 30. That will be $ 45,000. Impressive, huh? And if you invest this money, the sum can be even more impressive. Here is a manual for you to become a savvy card holder and save money for your retirement time.

When you choose a credit card deal, compare rates and fees on different offers, you know that the rate at which you get the card today, about 9%, for instance, can increase to 12-14% or higher in a couple of years. But this does not necessarily mean that you have to change credit cards every several months. There are ways to save money using one and the same plastic.

Here is what you can do. You can ask for a lower interest rate. Just contact your credit card issuer and try to negotiate better terms. As you understand, this does not work in 100% of cases. But if you are a diligent, responsible, and reliable card holder, you are accurate about your monthly payments, you have a good credit score and a stainless credit card history, your request will most likely be complied with.

While talking to your lender you can resort to some tricks. Say that one of the competing credit card companies offered you a lower rate. Hinting that you might leave your creditor and go with another one is like hitting their sore spot. This little "threat" will make your lenders nervous a bit, and they are most likely to agree to your conditions.

But of course, you should not go beyond reasonable limits. The average APR today ranges from 12 to 15%. And even if your credit score allows you to qualify for excellent credit cards, you will be rejected on a request to lower your interest rate to 10%, exempt you from all fees, and give you a lavish rewards program. Be reasonable in your wishes and claims.

Another wise decision that can help you to save money is to set your priorities about credit card payments right. If you use more than one plastic, you should pay off the balance on the highest-rate plastic. The faster you will pay it off - the less money you lose on the interest. As for low rate card offers, they will wait.

In case you have some insignificant credit card debt, it might be an obstacle on your way to saving money. You can whether get a balance transfer card with 0% introductory APR and consolidate your debts on it. Or you can opt for some other favorable offer with 0% interest rate and pay off your debts during your introductory period.

And if you doubt in actual use of the above-mentioned tips, try putting all the money, you would have lost on interest, on your bank account. A couple of years later you will feel the benefit.

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