subject: How Can You Minimize Credit Card Costs? [print this page] Credit card is a line of debt provided to an individual by the issuers of the credit card. The issuer is generally banks or any other financial institution. These days owning a credit cards is very easy as one can apply credit card online. Credit card provides liquidity to an individual as they can use credit card for their personal use but they promise to pay that debt at some certain date which is the credit period provided by the issuer. Credit card can prove helpful if used carefully but on the other hand if not used properly and carefully, it is the biggest debt burden as it carries high rate of interest if dues are not paid on time. Following are the ways by which one can make efficient use of credit card and can reduce their credit card costs in the same time:
Minimum payment should be avoided: Credit card user should avoid payment of minimum due. Paying the minimum amount each month makes it look like that debt is affordable but in fact with interest adding up, your debt is actually piling up. As interest rate on credit card is very high and levied daily, therefore payment should be paid in full to avoid interest charges because interest is constantly adding up. So, small amount in excess of minimum amount can make a huge difference.
Pay the most expensive card first: If you have bunch of credit cards and you use them all on regular basis, in order to decrease your cost, you should pay the most expensive debts with the highest interest rates first. Different credit cards carry different rates of interest, so paying high cost for best credit card in India can save you money in the form of interest to be paid to Credit Card Company.
Consider Balance Transfer: Transferring balance of your current card to another card offering low rate of interest can result in minimizing costs of using them. Some cards provide introductory interest free periods to pay off your credit card debts.
Choose a low interest credit card: If you are not always going to pay off your credit card each month, you can ask your credit card provider to switch you to low cost credit card with low rate of interest. This can save you some money in the long run.
One can apply credit card online, but before you apply credit card various offers and cost of credit card should be compared. To get best credit card in India and to compare various offers, policybazaar.com can be used as a medium and even you can apply credit card through our web portal as well.
