Save Money – Credit Cards – Part 2

Cont …

• Beware of Rewards Cards. Rewards cards sound a big deal either in earning airline mile or cash back offers. Even cards advertise 5% cash back in actual terms when you look at you receive 1% cash back or equivalent rewards that majority of cards offer. In turn these cards indulge you to spend more and in turn you are on credit / debt. Also the interest rates in these rewards cards are generally higher than the normal credit cards. Go for these cards provided you are certain that you will pay the balance on time and no balance is left at end of the cycle.

• Balance Transfer Credit card. If you are keen to settle your debt in credit card go for a balance transfer credit card. Go for a balance transfer credit card which has the longest 0% interest. There is a huge benefit if you are paying a year or year and a half 0% interest rate, which allow you to pay off the capital in a faster pace.