Think you can save money on your credit cards?

24 September 2008

If you have a number of credit cards you could be spending more than you need to. If you have several credit cards, you are probably paying several annual fees, several different interest rates, and you may be missing out on beneficial reward programs. But before you apply for a balance transfer credit card, remember to do your homework and find out all the details first.

Whenever you apply for a new credit card, remember to ask yourself the usual questions, such as how often you plan on using the credit card.

Benefits of a balance transfer credit card include:

Only one annual fee.
A low interest rate.
A better rewards program.
Introductory periods with low interest rates or zero interest rates for the length of the introductory period.
Offers of interest free periods.

One of the benefits of zero interest introductory periods is that you can pay off your owing balance and not be charged any interest on the amount. By placing all your credit card debt into one credit card account, you can keep track of your spending and save money as you aren't paying any unnecessary interest or fees.

If these features appeal to you, ask information from your proposed new bank. Be sure to find out:

The standard interest rate after the introductory period ends.
If the introductory interest rate only applies to the transferred balance, or does it apply to all purchases and cash advances.
What your credit card limit will be once you transfer your balance over to the new bank.

If you have any concerns, be sure to ask before you sign the dotted line. Discuss your options with a professional finance advisor if you still feel unsure.

Compare credit cards and find the right balance transfer credit card for you. Some to consider are the Woolworths credit card, the Woolworths Everyday Money credit card, or the Aussie MasterCard credit card.

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