We make use of credit card on a daily basis. I've recommended in my previous posts on money management to avoid credit card on day-to-day purchases to spend less. We can still make the optimal use of credit card to earn rewards in the form of cash back. Choose credit card to cater your needs - Use gas credit card if you travel long distances for work, use credit card with best deals on flight, motel deals if you travel a lot.
This post gives details on 0%APR. This is the best way to save money on your interest. Lets say you own $10,000 debt in credit card A. You pay 11% APR on this credit. Now lets say credit card B introduces a balance transfer offer. They charge you 3% on balance transfer. You pay 0%APR for 1 year. In this case if we do a balance transfer from credit card A to credit card B we save -- 11-3 = 8%APR as a whole. This comes around $10,000 * 8/100 = $800. This is a huge saving. So, look out for such deals to save big on credit card interest.
This post gives details on 0%APR. This is the best way to save money on your interest. Lets say you own $10,000 debt in credit card A. You pay 11% APR on this credit. Now lets say credit card B introduces a balance transfer offer. They charge you 3% on balance transfer. You pay 0%APR for 1 year. In this case if we do a balance transfer from credit card A to credit card B we save -- 11-3 = 8%APR as a whole. This comes around $10,000 * 8/100 = $800. This is a huge saving. So, look out for such deals to save big on credit card interest.
