Want to Save Money on your Credit Card? Here's how you can reduce the Interest

One of the most frequently asked questions is how to save money using credit cards? Falling short on cash can be tiring but what’s more problematic is being debt trapped. Nobody wishes to fall into that situation, but definitely, credit cards can be quite tempting and give you a free hand to spend if not taken care of.

 

Though there might be many people struggling in this area, worry not, saving money on credit cards is no rocket science. One easy way you can do this is by lowering the interest rate on your credit card. But the question is, how to lower the credit card interest rate? Let’s find out:

• Ensure that you have the right credit card

This is the first basic answer to how to save money on credit cards. The very first step towards benefitting the most out of a credit card is to choose the right one. You must choose a credit card wisely and know all about it before welcoming it into your life.

• Make sure you are a step ahead in clearing dues before the due date

You may pass days over days and avoid paying the dues of your credit card. But when it reaches the deadline, it creates not only a monetary burden but also mental pressure. So, when thinking of how to lower Credit Card APR, try to pay your dues before or by the deadline. Also, there are many companies that do not charge interest on purchases. So this is one way you can reduce credit card interest. Pay the full outstanding amount on the due date and relax.

• EMIs can be really helpful

EMIs are a great way to lower credit card interest. Wondering how? Equated Monthly Installment or EMI is the gateway to affordable purchases. If you are planning to buy something costly, you can either pay the total amount on your own or count on your credit card. But that’s not all you need to do to play smart in this context.A credit card that offers no-cost EMI then probably could be one of the best available choices. With this feature, you can split the bill to several months causing no huge monetary burden and you can comfortably pay your monthly due on time and in full amount. That’s because you will have no extra burden of interest rates.

• Don’t wait for the next billing cycle

When you have the option of rolling your due amount to the next month, it might sound convincing, but wait, is that a future debt trap? Well, most probably yes! This is one way you can fall into debt and get huge dues and interest rates imposed on your due amount. This happens because, in the next month, you are charged a higher interest rate due to a higher due amount. So, how to reduce credit card interest? You can simply do so by clearing your dues on time and not rolling any due amount for the next month.

• Restore what you withdraw

Credit cards are made to help you with money needs. You can withdraw money from your ATM card anytime you want using your credit card, but at the same time, you need to keep in mind that when you take out cash on your credit card, it comes with a higher interest rate.What is important after this is the process of replenishment of the cash withdrawn. Make it a habit to replenish the cash amount withdrawn using a credit card as soon as possible. It helps you keep the interest amount to a minimum and thus reduces your burden.

 

Now that you know how to get a lower interest rate on a credit card, pick the right card for yourself and start following these simple tips and tricks to use the credit card wisely and smartly.

 

A number of credit cards are offered by Bajaj Markets, which offer you a low-interest rate. Apply for the best-suited card online now. By paying dues on time and using EMI options for larger purchases you can easily lower the interest rate on your cards. We hope, after understanding how to save money with a credit card, you must now be all set to shop freely.