10 Tricks to Save Money with Credit Cards

With the economy in its current state, most consumers are seeking ways to save money wherever possible. Looking at your credit card expenses is a great place to start. Those fees and interest payments can add up quickly, trapping with debt that keeps growing.

1. Always make your payments on time. This may seem obvious, but with the due dates changing all the time, you can easily get caught by surprise and miss the deadline. Late payment fees can add up quickly, not to mention that your credit card company may use that as an excuse to increase your interest rate, compounding the error. Other companies may also follow suit, even if you have always paid their bills on time. Make sure your bill-paying system is organized, that you carefully review the due date, and then make the payment as soon as possible. Many companies will even let you schedule your payment for a future date, so it will not come out of your checking account before you are ready, but eliminating the possibility of forgetting the payment.

2. Review your credit history reports. All of them. If even one has inaccurate information about you, it will hurt your overall rating, making it harder for you to get a low interest rate. If you do find incorrect information, contact the agency immediately to get it corrected. Once you are sure your credit history is accurate, see if there are any outstanding items that you can pay off to clean up your history.

3. Now that you have reviewed your credit history, contact your credit card company to request a better rate. This may not be as easy as in the past, but if you have a good history with the company, it's certainly worth the effort. If you are able to negotiate a better rate, great! If not, start shopping with other companies to see if someone else will offer a lower rate.

4. The longer you carry a balance, the more interest you will pay, so make the highest payments you can afford. With credit card rates far exceeding savings interest rates, dipping into your savings a little can pay off quickly. If possible, keep enough set back for emergencies. If you do not have savings, look for cost-saving measures in other areas of your budget to free up as much money as possible for your credit card payments.

5. Take advantage of low introductory rate offers from other credit card companies. Even if you pay a small fee for a balance transfer, having 3, 6, or even 12 months at a lower interest rate will help you pay off your balance sooner.

6. Look for credit card companies who offer a reward system, but who do not have a high annual fee or interest rate in exchange for the service. If you are going to be using your credit card anyway, why not take advantage of the rewards. Some companies offer cash back based on your purchases, while others let you cash in your points for a gift card to restaurants or retail chains. You can then use these rewards to avoid putting that purchase on your credit card.

7. Consider taking a home equity loan. Your interest rate is typically lower, and it has the added advantage of being tax deductible. Of course, you are using the equity in your home, and if you can't afford the payments, you could faced with having to sell your house if you fall behind, so make sure you will be able to make the payments before taking this step.

8. Try to find a credit card that does not charge an annual fee. Sometimes this is a trade-off for other considerations such as the interest rate or grace period, so make sure you review all of the terms, but this could save you $25 to $50 annually. This might not sound like much, but it adds up.

9. If you are carrying a balance on two or more cards, concentrate on paying down the card with the highest interest rate first, while making the minimum monthly payment on the others. Once the first is paid off, turn your focus to the one with the next-highest rate, repeating the process. It's pointless to try to make high payments on all of them, when one might have a much higher rate, meaning less of your money is going to pay off the debt and more is going to interest.

10. Finally, watch out for extra fees. Your company may charge a fee to make a payment by phone. Those "free" checks that come in the mail? They're usually considered a cash advance if you use them, which can carry a one-time fee, as well as charging a higher interest rate than for purchases. Also watch out for two-cycle billing practices, where your company averages your balance for two months and charges you interest accordingly, even if you paid off the balance for one of those months or you just made a large purchase at the end of the second month.

If you follow some of all of these tips, you should start seeing your credit card debt decreasing much more quickly. Then you just have to be careful about future purchases, making sure the purchase is really worth the debt.