Most consumers apply for or use their credit cards without considering any other condition but the credit limit and the annual fee. This is a wrong practice. Not knowing the intricacies of how a credit card works may lead a user to immense debts. Know your credit card properly.  Make it work well for you instead of the other way around. Take note of the following as these would help you save when using your credit card instead of leading you to financial woes.


  • Pay the credit card balance in full every month – Do not use your credit card to pay for something you do not have the budget for. If you do not have the budget for the purchases you make on your credit card, chances are you cannot pay your statement in full on its due date. Ensuring that you credit card bill is paid in full every month will guarantee that you will not get charged for interests.


  • Look for the lowest interest rate – If you have no choice but to pay your credit card on a staggered basis, choose one that charges the lowest interest rate in the market. If you are an existing credit card holder, ask your bank to convert your account to the low interest one.


  • Say no to department store cards – Department store credit cards are very easy to acquire even for those with no prior credit history. Be warned however that these types of credit cards have the biggest interest rate and it would be best to avoid them.


  • Avoid cards with two billing cycles – There are a few cards that will trick the client with two billing cycles. Avoid them. The interest they charge is based on the balance for the previous month plus the current month. They won’t tell you this outright and chances are, you wouldn’t know they do this until you read the fine print in the application form you filled up.


  • Do not use the cash advance feature – Most credit card companies will entice you to avail of the cash advance facility. Since you already have a credit card with them and have established yourself to be a good payer, some will even tempt to with a pre-approved loan or cash advance for big amounts. The interest rates for these are very high that why they will tempt you with it.


  • Choose a good rewards program – All credit card facilities have their own rewards program. Don’t be tempted with the one that offers the nicest reward. Look into the annual fees they charge. Chances are, the annual fees they will get from their consumers will pay for the rewards program they offer.


  • Waive the annual fee – If you have already established yourself as a good customer, ask your credit card company to waive your annual fee. There’s a good chance that they will grant your request rather than lose you.