The average credit cardholder spends more than $1,000 per year on credit cards, but there are ways to get around that.
Here are a few of them.1.
Choose the right card for youFirst of all, it’s important to consider the card type you’ll be using.
Most cards are one-time use.
They don’t come with monthly payments, so you won’t have to worry about it if you decide to cancel it.
If you want to buy something regularly, however, it pays to choose a card that allows you to buy at a lower rate than your typical cardholder.
For instance, you could use a card with no annual fee and pay the difference between your regular and annual fee when you pay your bill.2.
Choose a card to protect yourselfMost credit cards have a grace period of up to three years.
This means you’ll need to apply for and pay off your card after three years of inactivity if you want your money to stay on the card.
The longer you have left to pay off, the higher the interest rate will be, and the longer you’ll have to pay to have your funds returned.
If your interest rate is higher than the 3-year grace period, it may be time to rethink your options.3.
Know what your credit score isIf you’re worried about the risk of losing your money, you might consider the credit scores of other cardholders.
These can help you to determine whether a card is worth your money.
Most credit card companies offer a credit score to help protect your account.
This helps you to assess the level of your creditworthiness.
Some cards have annual fee ranges, which are calculated by dividing the interest you pay on the account by the total amount of your annual payment.
You’ll also want to compare the credit reports of different companies to get an idea of which cards might be the best for you.4.
Check for hidden feesSome credit cards offer a low interest rate and a lower annual fee, but they still have some fees.
The average cardholder will have to shell out an extra $50 for a service fee or additional fees.
Most of these are typically hidden fees, which can vary from a few cents per statement to up to 10 percent of the total cost of the credit card.
Some companies have waived fees.5.
Consider what you can get for your moneyThere are some perks to using a credit card, but most of the time the savings are only worth the cost of borrowing it.
For example, if you borrow $100,000 with a 5% interest rate, you’ll pay $1.75 for every $1 you borrow.
If the interest is lower, you can earn $0.25 per $1 borrowed.
This doesn’t include any fees.
But remember that you’re borrowing a small amount of money that you can use later to buy things, so it’s best to use your card responsibly.