20 Tips To Save Money On Your Credit Card This Christmas
Posted October 14th, 2009
and last modified July 2nd, 2010
Featured Shopping Credit Card
Save money on your credit card this Christmas with a St.George Vertigo MasterCard which features an introductory offer on both purchases and balance transfers for the first 6 months. This is truly the ultimate low rate shopping credit card
- $55 annual fee
- 12.49% p.a. on purchases
- 2.99% p.a. for 6 months on balance transfers
- Cash Advance Rate of 21.24%
- Up to 55 days interest free on purchases.
Click here to read the St George Vertigo terms and conditions
1. Don’t buy on credit what you cannot afford in cash. Plan ahead and save rather than rely on your credit limit to take care of the purchases. Cash purchases may also open the way to a little haggling on price, as the vendor will not have to pay any credit card fees.
2. Make sure you have the correct credit card for your spending habits. If you do not intend to pay off the whole amount when your January statement arrives, make sure your credit card has a low rate of interest.
3. Check if your card provider will waive its annual fee if you spend above a certain amount annually, but don’t stretch yourself to reach this if it means going beyond your means. That is called a false economy, as you will only lose out in interest rate charges in the long run.
4. Take advantage of store card offers, providing they don’t entice you into spending on things you would normally shun.
5. Check out the introductory low interest rate offers from other credit card providers if you already have an outstanding credit card balance. Just be aware that any new purchases will not be subject to the low rate, and indeed may be subject to a higher than normal rate of interest.
6. Aim to pay as much as possible off your debt each month – not just the minimum amount. The sooner you pay the full amount, the more you will save in the long run by avoiding interest charges.
7. Try paying the full balance each month to take advantage of the interest-free period on purchases, assuming your card has such a feature.
8. Understand the implications of any reward scheme offered by the card. Reward schemes are not always free, so you may be better off avoiding such a card and instead find a cheaper purchase or flight online. Certain affiliated airlines may not even travel the routes you want to use.
9. You may pay higher interest to enjoy the benefits of a rewards scheme. Don’t let such factors as points accumulation influence what you buy or where you buy it, if you end up losing out in the long term.
10. Use your credit card when making purchases online. It is easy and much safer should anything go wrong, because credit card providers guarantee online purchases.
11. If you are going to repay your card in full each month, then this will be cheaper than cash withdrawals from an ATM if your bank charges per transaction.
12. Consider a combined credit/debit card, linked to your savings account, so you only use your credit facility when absolutely necessary.
13. Do not be tempted by store cards just because no one will give you a credit card. A higher rate of interest is the price you pay for the relative ease of getting a store card.
14. If you wish to cancel your card, let your provider know. They will have no idea if you take your scissors to the card, so any fees attached to the card will continue until it is officially terminated.
15. One-off exception fees apply to late payments on credit cards where the minimum payment has been missed. This may also affect your credit rating.
16. Although store cards by major retailers may give you such things as discounts and extended warranties, they will usually charge higher interest if the card is not paid in full each month.
17. Do not allow any additional cardholder to run amok with your credit. Check with your provider regarding recent purchases and cancel any card being abused.
18. Make certain you know where your credit cards are at all times. Cancel any lost or stolen card immediately to avoid unwanted purchases. The first 48 hours are critical.
19. Do not assume that your monthly credit card statement is accurate. Check it against your credit card receipts and query any discrepancies.
20. Don’t forget the annual fee when weighing up whether a new credit card is financially viable. A high fee can offset a low rate of interest, and if you settle in full each month, then a high fee may be just money down the drain.
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Editor's Choice: Our Top Credit Cards
| Credit Card | Card Details | Interest Rate (p.a.) | Cash Advance Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual fee | Interest free days (up to) | |
|---|---|---|---|---|---|---|---|
 HSBC Credit Card |  Editor's Choice:0% for 6 months Balance Transfer & No Annual Fee Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010. | 16.99% | 20.75% | 0% for 6 months | $0 | 55 |   |
 Suncorp Clear Options Standard Visa Card | A great 12 month balance transfer offer, combined with a low annual fee and a good interest rate on purchases. | 12.24% | 17.99% | 1.9% for 12 months | $39 | 0 | |
October 14th, 2009 at 2:22 pm
I never really thought of point 11 before. But then, looking back, you’re right