Why Paying Your Credit Card Bill By Direct Debit Can Save You Money
Want to avoid late fees, extra interest charges and never-ending credit card bills? There's a simple four step solution that can save your time, money, worry and possibly your good credit standing.
Step 1: Gather your credit card bills and check the due date on each of them. It's the same date every month.
Step 2: Log onto your online banking account or visit your local bank branch.
Step 3: Set up a direct debit payment for each of your credit cards each month to be made in advance of the due date.
Step 4: Make sure that the money to make the direct debit payment is in your account each month.
It's that simple. By ensuring that each of your credit card accounts are paid on time every single month, you'll avoid running up extra interest on the account balances. More importantly, you'll avoid one of the biggest expenses of having a credit card ? late fees and penalties.
That's only one way to save money on your credit cards and accounts. There are many others, staring before you even apply for a credit card. Here are half a dozen tips to help you get the most out of your credit cards while paying the least.
Shop around when you decide to apply for a credit card. Don't assume that the best credit card is the one with the lowest APR. Instead, compare credit cards by important features to find the one that is best for your purposes. Moneyeverything.com can help you compare credit cards against each other to find the best credit card for you.
When you compare credit cards, be certain that you're comparing similar cards with each other. For instance, compare balance transfer credit cards with other balance transfer credit cards if you're looking to apply for a credit card to help lower your monthly bills.
Speaking of balance transfer credit cards, they're an excellent way to reduce the interest that you're paying on your other accounts. If you're carrying a balance on a high APR credit card, you may be able to save the monthly interest fees by transferring the balance to a low interest balance transfer credit card. Be sure to compare credit cards by how long the low interest rate applies and what conditions you have to fulfill in order to keep it.
Keep more than one credit card in your wallet, but pay attention to which ones they are. There are several different kinds of credit cards, each offering unique features and advantages. You should have one good rewards credit card for everyday purchases, and one low APR credit card for purchases that you'll pay for over time.
Watch the due date on your credit card accounts. Late payments can hurt you in more ways than one. Most credit card issuers will charge a one-time late fee for a late payment, which is added onto your balance. Others are harsher. A single late payment can raise your interest rate by as much as 20% APR.
Take advantage of the grace period between making a purchase and interest coming due on it. If you pay off the purchase in full before the grace period ends, you'll pay no interest on it at all.
Pay off your accounts in full each month to avoid interest charges. Only carry a balance on your lowest APR card, and be certain to pay more than the minimum amount due on it each month to bring the account balance down as quickly as possible.
The key to saving money on your credit card payments is to understand all the terms and conditions. Read the fine print, do the math, and use the right credit card for the job, and you'll be surprised how handy they can be.