Credit Cards - Saving Money Tips

[jeffrey]

1. Although Visa and MasterCard gift cards offer convenience, they come with fees for both you and the recipient. It makes more financial sense to buy a nice card and put a check or cash inside.

2. Always pay off your entire credit card balance each month. You can end up paying almost as much in interest charges as the item actually cost if you only make the minimum payment each month.

3. Avoid taking cash advances using your credit card. Interest rates are usually much higher for cash advances than on your credit card purchases (which are already high). Furthermore, there is usually no grace period with cash advances meaning the interest starts to accrue immediately.

4. Be extremely skeptical of unsolicited email from "nonprofit" sites that claims they can reduce your credit card debt. The credit counseling industry is unregulated with plenty of operators who will take advantage of those in debt, and nonprofit claims hold little weight. Take the time to seek out a reputable credit counseling agency.

5. Be extremely wary of offers to receive pre-approved credit cards with low interest rates and no annual fees for an upfront payment. Not only will you never see the card, you will likely never see your up front payment again, either.

6. Do not staple your check to your credit card payment voucher. Doing so will prevent the document from being processed through the credit card company's automated machines. Your payment will be put aside until someone has the time to remove the staple from the voucher which may result in you being assessed late penalty charges.

7. Don't be fooled into paying extra for credit card protection. Federal law already protects credit card users, so even if your credit card is stolen and huge charges applied to it, your maximum liability is $50.

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8. If you make a credit card balance transfer to a new, lower rate card, continue to make the minimum payments on your old card while waiting for the balance transfer to take effect. Transfers can take up to 4 weeks and if you miss a payment to your old credit card issuer during this time, they will likely charge you a late fee which could also adversely effect your credit rating.

9. If you need a credit card, try to obtain a no fee card, although you need to consider other factors such as grace period and interest rates as well. If you are charged an annual fee on a current card, call the issuing bank to try and get the fee waived. Many are willing to do so to keep a good customer, but you have to ask to receive it.

10. Begin to pay off your credit card debt. Start by promising to pay more than the minimum amount due on your credit card bill every month.

11. Reducing your credit card interest rate can be as simple as making a phone call. According to a Public Interest Research Group (PIRG) study, 56% of those surveyed reduced their credit card rates simply by asking their credit card companies to do so.

12. To avoid credit card late fees and a possible increase in your interest rate, simply send the minimum payment as soon as you receive your credit card statement. Send a second payment near the due date to pay off the balance.

13. To help avoid paying credit card late fees, keep a calendar with your normal monthly payment dates listed. As your normal payment due date approaches (generally 10 days before), if you haven't received a statement you should call the credit card company for the payment due and put it in the mail.

14. When paying with MasterCard, Visa, or American Express, don't write your phone number, home address, or driver's license number on the credit card sales slip since this makes identity theft easier. All three companies require merchants to sell to you even if you don't provide this information.

15. While transferring credit card balances to a lower interest rate card is a good idea most of the time, be aware that some credit cards charge you a fee to transfer your balance. These fees can be quite hefty, so if you're planning to do so, search for a card that doesn't charge the transfer fee.

[amomof4]

Re: Saving Tips For Credit Cards

I called my credit card company to cancel the card because I no longer wanted to pay the annual fee. They waived the fee.

[AntiCost]

Re: Credit Cards - Saving Money Tips

Most credit card companies will credit any late fees back if you give them a call-- really, it's that simple! I've had this happen 2 or 3 times to me (once I mistakenly forgot the mail the envelope, the other time it was just slooow to get there).. After 5-10 minutes on the phone they had no problem crediting back the fees..

Also; I didn't see any mention of cash back cards; why not use them? If you are diligent in paying your bills monthly, there's no reason to send a check everytime. You can easily earn 1-5% back on most of your purchases by using your card. Most utility & phone companies accept credit card purchases as well.

You save: time, money, envelopes, and stamps!

[starving_student]

Re: Credit Cards - Saving Money Tips

Citi bank and american airline are offering a card that has no annual fee for the first year and give out 3 points for every dollar spent, there is also an initial 15 000 points bonus. As it takes only 25 000 points to get a free flight. It might be well worth it. I should not forget to cancel after 1 year though. Also their interest rate are very high.

[debtdude]

Re: Credit Cards - Saving Money Tips

Note that while you could go with 0% transfer cards every time your initial period ends (6-12 months), this will negatively effect your credit score because you are appling for so many cards.

I had a 0% for a year. When it was over, I called and said my other xyz card is offering a 2.9 transfer rate. Can you match that? That could only do 3.7 so I switched. While I did have transfer fees to pay, the 2.9 was still a better rate.

[jmerinka7]

Re: Credit Cards - Saving Money Tips

I asked Discover to take off the late fee because my check was late for one day. I was advised that it can be only once per year as per their regulation.

[greedy4chips]

Re: Credit Cards - Saving Money Tips

Last year I sent a letter to Citibank CEO Ken Stork requesting the additional $174 of rebates I had been told I would earn, but could not claim until this year due to their limit of $300 per year earned in rebates. I referred him to a previous call I had made to customer service so I would be perfectly clear on the rebates and how they worked.

Within 2 weeks I had a check for $174.

It never hurts to ask for anything from a credit card issuer. They spend millions every year recruiting new customers and if they have you as a customer already they will most definitely try to make you happy. But don't expect them to reverse late fees if you have been late 1 other time recently.

They will wave yearly fees, reverse late fees, and over the credit limit fees as well as process over the phone payments without a charge if you ask nicely.

Who says the big bad CC companies are so bad?

[greedy4chips]

Re: Credit Cards - Saving Money Tips

btw the customer service rep stated I would continue to earn all rebates until the end of the year, but I could not request a check for more than the $300 limit.

We now carry 2 Citicards with 5% rebates on all gas, grocery, and pharmacy purchases. At $800-$1000/ month we earn about $500 per year doing this. We also carry a card for home improvement store rebates. A card for all other purchases. We also tie the cards into Upromise's program for college tuition to earn money for whatever we can.

We don't go out of the way to earn money, its just a very nice bonus!

[jmerinka7]

Re: Credit Cards - Saving Money Tips

It is a bad sign for your credit report if you are using more that 2 creditcards. But it is a good with money return for you.

[ahutchi1]

Re: Credit Cards - Saving Money Tips

Note that while you could go with 0% transfer cards every time your initial period ends (6-12 months), this will negatively effect your credit score because you are appling for so many cards.

I would beg to differ on this point. I would advise anyone who has been told this or has been wondering this to read this article here.

I believe that the "If you keep transfering your balances your credit score will drop" is a myth to keep consumers from doing balance transfers. I also think based on the above link that one can have as many cards as they wish as long as they are not using every single card they have.

I.E. Lets say I have a total of 5 credit cards. It would not be good for my credit if I was using every single card, but it would be good if I was only using at most 2 of the cards I had available. Even better would be to have only 2 cards active and the rest available just in case they entice me enough that I would do business with them again.

just my 2 cents

[nobodyspecial]

Re: Credit Cards - Saving Money Tips

That sounds great, but most everyone has a credit card.
I suggest the Capital One® Platinum Prestige Card.
6.81 interest rate is faltout the best around with zero annual fee.

1. Although Visa and MasterCard gift cards offer convenience, they come with fees for both you and the recipient. It makes more financial sense to buy a nice card and put a check or cash inside.

2. Always pay off your entire credit card balance each month. You can end up paying almost as much in interest charges as the item actually cost if you only make the minimum payment each month.

3. Avoid taking cash advances using your credit card. Interest rates are usually much higher for cash advances than on your credit card purchases (which are already high). Furthermore, there is usually no grace period with cash advances meaning the interest starts to accrue immediately.

4. Be extremely skeptical of unsolicited email from "nonprofit" sites that claims they can reduce your credit card debt. The credit counseling industry is unregulated with plenty of operators who will take advantage of those in debt, and nonprofit claims hold little weight. Take the time to seek out a reputable credit counseling agency.

5. Be extremely wary of offers to receive pre-approved credit cards with low interest rates and no annual fees for an upfront payment. Not only will you never see the card, you will likely never see your up front payment again, either.

6. Do not staple your check to your credit card payment voucher. Doing so will prevent the document from being processed through the credit card company's automated machines. Your payment will be put aside until someone has the time to remove the staple from the voucher which may result in you being assessed late penalty charges.

7. Don't be fooled into paying extra for credit card protection. Federal law already protects credit card users, so even if your credit card is stolen and huge charges applied to it, your maximum liability is $50.

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8. If you make a credit card balance transfer to a new, lower rate card, continue to make the minimum payments on your old card while waiting for the balance transfer to take effect. Transfers can take up to 4 weeks and if you miss a payment to your old credit card issuer during this time, they will likely charge you a late fee which could also adversely effect your credit rating.

9. If you need a credit card, try to obtain a no fee card, although you need to consider other factors such as grace period and interest rates as well. If you are charged an annual fee on a current card, call the issuing bank to try and get the fee waived. Many are willing to do so to keep a good customer, but you have to ask to receive it.

10. Begin to pay off your credit card debt. Start by promising to pay more than the minimum amount due on your credit card bill every month.

11. Reducing your credit card interest rate can be as simple as making a phone call. According to a Public Interest Research Group (PIRG) study, 56% of those surveyed reduced their credit card rates simply by asking their credit card companies to do so.

12. To avoid credit card late fees and a possible increase in your interest rate, simply send the minimum payment as soon as you receive your credit card statement. Send a second payment near the due date to pay off the balance.

13. To help avoid paying credit card late fees, keep a calendar with your normal monthly payment dates listed. As your normal payment due date approaches (generally 10 days before), if you haven't received a statement you should call the credit card company for the payment due and put it in the mail.

14. When paying with MasterCard, Visa, or American Express, don't write your phone number, home address, or driver's license number on the credit card sales slip since this makes identity theft easier. All three companies require merchants to sell to you even if you don't provide this information.

15. While transferring credit card balances to a lower interest rate card is a good idea most of the time, be aware that some credit cards charge you a fee to transfer your balance. These fees can be quite hefty, so if you're planning to do so, search for a card that doesn't charge the transfer fee.

[Kewells]

Re: Credit Cards - Saving Money Tips

With regard to your credit score being affected by how many credit cards you have, NobodySpecial is on the right track. I had it explained to me that the people who calculate your credit score look at your total amount of credit available and what percent of that available credit you are currently using. Obviously, the less you are using the better your score.

[Oliver21]

Re: Credit Cards - Saving Money Tips

It could take as little effort as one phone call to lower your credit card interest rate, according to Curtis Arnold, of Cardratings.com, a site that lists the best credit card offers currently available. His one-call theory was put to the test by local Houston TV station KTRK, which hired a bunch of “card testers” to check it out, with surprising results: about half of those who made one call to their credit card company succeeded to get a lower rate. One tester, Joelle Miller, lowered her rate by almost seven percent! Before you pick up the phone, check out Arnold’s top tips on how to gab your way into lowering what you pay:

1. Get a Handle on History – Knowing your account history is step one; if you don’t pay late, tell that to the credit card company’s customer service representative.

2. Know the Score – Most consumers have a credit score in the 700-range, which is considered good. You can find out your credit score for free via FreeCreditReport.com. This free credit score is truly unique, since most of the time they cost up to US$14.95. If you have a score around 700, tell the card representative.

3. Get Tough - The average credit card rate is 15%. If you are paying more than that, tell the representative you are speaking to that you know you can get a better rate somewhere else. Ask them point blank why you are paying such a high rate. If he/she refuses to lower the rate, tell them you want to close the account. You don't actually have to follow through with the threat, but by saying it you will be transferred to the account retention department; that's the place designed to keep you as a customer. They are the ones who have the authority to make bigger concessions.

4. No Means Call Back in 15 - If your credit card rep says no, call back in 15 minutes. You'll be speaking to a different person, and that may be all it takes to get that lower rate. If the answer is still no, Arnold says find a credit card with a low rate on balance transfers, and move the balance to that new card.

[davlat]

That sounds great, but most everyone has a credit card.
I suggest the Capital One� Platinum Prestige Card.
6.81 interest rate is faltout the best around with zero annual fee.

careful if you choose Capital One... I have no experience but many said bad things about it.. One thing most people refer is they do not report your credit line.. So they can keep your ratio (balance / total credit line) lower than actual and keep your credit score lower.. So nobody offer you better deal and that is how they keep you...

[mekish]

I called my credit card company to cancel the card because I no longer wanted to pay the annual fee. They waived the fee.

lol..thats excellent. maybe next you should tell them another competitor is offering you better interest rates!