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Having a Good Credit Card Can Save You Money

GirlwithrivermarkcardConsider for a moment how you feel about your credit card.

If it charges high interest rates, socks you with hefty fees and gives you nothing special in return, you probably don’t feel that good about it.

A good card, one with bonuses and low interest rates, can leave you feeling financially savvy, though. That’s because it can save you money, usually in more ways than one.

Low interest

The golden rule for credit cards is to pay your balance in full each month to avoid interest charges on purchases. This isn’t possible for all cardholders, all the time. At the very least, pay the minimum due on time each month.

When you do carry a balance on your card, having a low interest rate can really pay off. Here’s how:

An average daily balance of $2,000 over the course of a 31-day billing cycle will result in a finance charge of roughly $30 for the month if your interest rate is 18%. Carry that average balance for the entire year and you will pay around $365 in finance charges.

On a card with a 9% interest rate, however, those charges drop to around $15 a month and about $186 for the year.

A Rivermark Visa Platinum starts at 6.9% APR, so you can save even more.

Fees

In addition to interest charges, many credit card issuers tack on fees. A lot of fees.

Some cards can charge consumers as many as 12 separate fees, including one to open the account, transfer a balance, take out a cash advance or return an item. Those may be in addition to monthly and annual service fees.

Selecting a card with minimal fees from a lender such as Rivermark can save you thousands of dollars over your time as a cardholder.

Rivermark charges no annual, balance, transfer or cash advance fees on Visa Platinum.

Bonuses

Card issuers may sweeten the deal for consumers by offering a large one-time bonus if you open a new card or transfer a balance. Just be sure to understand whether there are any costs involved, such as a percentage of the amount involved or a flat fee. Taking advantage of deals like these can help you save money, or even make money.

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