Choosing The Right Credit Card To Make Your Online Purchases Can Save You Money

Did you know that you are probably wasting money by using the wrong credit card for purchases online. Yep that is the truth. According to an online survey that I read it seems that seventy five percent of the people that shop online and use credit cards think they are using the right card. They are not wrong they are just misinformed by the credit card companies themselves. Lets take a look at some of the features that these companies offer.

The low interest rate card for instance is a great card to have if you plan on carrying over a balance from month to month right? Nope that is usually wrong. What the credit card companies know is that when they send you the bill with the low minimum payment odds are that is the payment you are going to make. They have done massive amount of surveys to figure this out. What you are thinking is that you will pay off the balance the next month. Guess what that never happens, you end up using the card again and again. Your balance goes up and all of a sudden you can't make the minimum payment. You miss a payment and your interest rate goes through the roof.

What about those cards that promise you a free laptop or a free IPod if you sign up and do a balance transfer from another card. They even offer you no balance transfer fees and a low interest rate for six months. Nope that is another bad card to have. After six months the interest rate goes up very high to make up for the six months of no interest and they lock you in for a year or even worse two years. I fell for this one so I know all about it. I got a new Dell laptop that was worth $700.00 and got locked into paying 17% interest rate for 18 months on the $6000.00 that I transferred over from my discover card. I don't even want to add up what I actually paid for the laptop that is now out of date.

Speaking of Discover card they give you a cash back percentage of your purchases. That sounds great in theory but does it really do anything for you. Not in my opinion, the 3% cash back that you get is lost in the 12% interest rate that you pay if you carry a balance. If you pay it off each month that is not a problem.

The best card to have for online purchases is a card like American Express where you have to pay off the balance at the end of the month. This type of credit card will keep you from getting yourself in over your head. Of course it won't help you if you overuse a credit card in the first place.

The whole idea around saving money on internet purchases is not to over spend so why would you have a credit card that doesn't help you when you find a bargain. click here to see more of our Bargain tips.