OK, lets get right to the point. Credit card companies don’t want you to compare credit card interest rates. They want to get you locked in with a card and have you make the minimum payments possible each month, because that is the way they make their money. But if you do compare credit cards with other providers, you can potentially save yourself thousands in interest over the space of the year.

Did you know that in most credit card contracts there is a clause that means your card provider can raise the amount of interest you are paying if you simply miss or are slightly late with only one payment? You may think you are on a great low interest rate credit card account, but if you are slow in making a payment, your rate may jump to 20% or higher overnight.

Obviously, if you have had this happen to you, the best thing to do is to transfer the outstanding amount for that account over to a new specialised balance transfer credit card account which can even have zero interest for the life of the transfer amount. What this means is that you can be paying 0% interest instead of the 20% or even more you might have been paying up until now.

This strategy will not be effective if you use your card for spending, as balance transfer credit cards only have low or zero interest on the transferred amount, and usually have a very high interest rate attached to further spending. And this is how the credit card provider will make money from you. If you need a card for buying groceries and other shopping there are some great rewards cards that have low interest for everyday spending often with quite a long interest free period after the initial spend and rewards associated with the amount you spend.

With any credit card you need to make sure you keep up with, at the very least, the minimum monthly repayment. If you use it regularly, it is recommended that you only spend what you already have in cash and can afford on the card, and pay this amount off fully each month. This way you still benefit from the rewards for spending, but you will not get behind and owe interest on top as well.






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