- Watch your limit
- Pay on time
- Lower your rate
- No annual fee
When you watch your limit closely you will know when a potential purchase could push you over the limit. When you go over the credit limit on your card you can be charged with a hefty over limit fee. The credit card company also reserves the right in most cases to dramatically increase your interest rate instantly. This ends up costing you more and more money over time.
This one is simple. Pay your card on time…..that is, schedule the payment way in advance of the due date. This will ensure that the payment gets in on time and you do not get stuck with late fees and a potentially higher interest rate.
If you do have a high interest rate and have been a good customer the credit card company may offer you a small grace period. You can request that this be in the form of a lower interest rate if possible. If the company does not automatically offer you a lower rate you can call them up and request that your rate be set to a lower amount. The worst that can happen is that they say no, in which case you call back in about 4 months and ask again.
One of the easiest ways to save money on your credit card is to get a card that does not have an annual fee. You can get cards with no annual fee from a number of companies, including but not limited to Discover, American Express, Capital One and HSBC.