Budgeting Finance Money last year Share Tweet While credit cards don’t have to be expensive, there are definitely ways that they can cost you. Whether it is in annual fees, high interest, or in fees and charges, credit cards can end up costing you huge amounts of money. So, how can you save money on your credit card? One easy way is to switch cards! For the most part, loyalty in the credit card business doesn’t get you anywhere. New customers are the ones who get all the good deals, so why not see how much you can save by switching credit cards today? Do you have a rewards credit card? Many rewards cards are actually very expensive, either in annual fees or interest charged. Unless you have an excellent deal, or you are a big spender, you often won’t get that much back from a rewards credit card. Work out how much you pay out for the card, and how much you get back in rewards, and think about whether you are getting a good return on your investment. Ho much are you paying in annual fees? Some prestige credit cards like Gold, Platinum and rewards cards can charge high annual fees. Some run as high as $900! Of course, you are getting a service for the amount you pay in annual fees, but it is important to make sure what you are paying out is less than what you are getting in return. How much are you paying in interest? Again, some credit cards charge extremely high-interest rates. If you pay off your balance each month, then the interest rate on the card doesn’t really matter. However, if you carry a balance each month, then you need to choose a credit card that has the lowest possible interest rate. Forget about fancy features and extras, get a low rate card until you can pay off your entire balance each month. Do you need an introductory offer? There are some great introductory offers out there, it all comes down to picking the right one. An offer on purchase rates is a good choice if you have a large purchase that you want to pay off with low or no interest. A balance transfer offer is great if you have balances on other credit cards that you want to pay off quickly with low or no interest. Be sure to find out how long the introductory period lasts, and what the rate reverts to at the end of the offer. Are you getting what you need from your credit card? The most important thing to ask yourself is, are you getting what you need from your credit card? Think about extra features and if you need them, think about rewards, think about offers, and think about the long term. Think about how much you are paying out, and if that is worth what you are getting back. If your card is not giving you what you need, it could be time to switch.