Save Money Through Lower Rates On Financial Products
Everyone would like to know how they can save money here and there, especially in the current economic climate. With unemployment rates staying about the same for the past couple of years, gas prices steadily increasing, and housing prices decreasing one has to become a more discerning consumer and more savvy about their purchases. One of the better ways to save money is to compare the best offers on things that have become somewhat of a necessity in this modern era like credit cards, insurance, mortgages, loans, and other financial products.
Good Low Rates On Credit Cards
If you use credit cards and have a good credit score being able to find the card with the best terms is they key to saving money; be advised that not all offers from credit card companies are the same. You may be able to find many companies that offer low interest rates and their offers seem like really good deals however please keep in mind that what you do not read may hurt you. The old saying holds true, the devil is in the details.
There are five critical things to be aware of when looking for a low interest rate credit card:
1). a low interest rate is the primary reason you are shopping around for a new credit card, do not get distracted by any other marketing frills the company may be advertising. Compare rates for different companies to narrow down your choices so that in the long run you will save money.
2). Be on the lookout for hidden fees. If you have a good score you may be laboring under the assumption that you may not have to pay any annual fees or membership fees. This is not always the case; and if you do have pretty good credit you will have a better range of choices whereas if your credit is not so good your pool of available lenders will get smaller and smaller.
3). Be aware of the grace period. A grace period is the time between when the monthly cycle ends and the time when your monthly balance is due without being assessed interest charges.
4). If a rewards program is offered there may be a higher interest rate associated. As mentioned earlier do not got caught up in the frills of a card. Assess whether or not you will even use the points offered and/or the frequency because with some cards the rewards points have a shelf life and you do not want to be paying on the back end for something you will ultimately have little use for.
5). Lastly, but perhaps most importantly, be on the look out for introductory periods.Again, make sure you read the fine print because a lot of credit card companies offer amazing interest rates to lure you into changing companies but those interest rates are only temporary; meaning once that introductory time period expires so does that great APR (annual percentage rate). The benefit to this type of card is that if you know you will pay off a big purchase or a transferred debt from another credit card within that introductory time period then you will be able to save a lot of money. However, conversely, if the new card’s interest rate will balloon up to a number higher than the interest rate on your current card you may be getting yourself into more trouble. Therefore, when shopping for a low-interest credit card, weigh the pros and cons of each.
Good Low Rates On Car Insurance
Automobile insurance is another necessity that with time and research can offer consumers savings. If you have great credit and no incidences on your motor vehicle report you are in the perfect condition to get lower premiums. If your current insurance carrier has expensive premiums you may consider switching insurance carriers (be advised that you may not want to skimp on coverage for a lower premium. Research other companies to determine what your coverage limits will be.) Next, take advantage of discounts. If you do not want to go through the hassle of switching companies, contact your current carrier to see if they have any available discounts that can help you save money. Many insurance companies are offering a wide variety of discounts just to stay competitive. Consider raising your deductible as a way to save money but make sure you have enough emergency cash to pay it if you were involved in an accident. Lastly, dropping some coverages is definitely a way to save money. For example, if you have an older car, you may want to drop comprehensive and collision coverage. Also, be advised that if you are in an accident or the car is stolen, you will have to pay for all of the repairs.
Good Low Rates On Loans
Lastly, when shopping around for personal loans keep in mind that there are secured and unsecured loans available. Secured loans, which are backed by collateral (something of value) are generally less expensive in terms of the interest rate and unsecured loans, or signature loans are generally more expensive and always come with higher interest rates. If you have a good credit score chances are you can shop around for lower interest rate secured and unsecured loans. There are also, short term loans available regardless of credit; these are called cash advance or payday loans. These are more or less, emergency loans, meant to be paid back on your next pay date. Be careful with these loans because if you are not able to pay them back according to the initial terms, the interest rates can skyrocket to terms in excess of four hundred percent.
Good Low Rates On Mortgages
Many people are completely unaware that they can save thousands of dollars, over time, on their mortgage. Here are a few tips on accomplishing that. You may consider refinancing your mortgage at a lower interest rate, if you have the financial wherewithal consider a fifteen (15) year mortgage instead of a thirty (30) year mortgage; this will save you thousands of dollars in interest payments. Also, if you financially able, try making an extra payment (to be applied to your principal, that is key) each month. Lastly, but still another great way to save money on your mortgage that requires no additional financial output is by simply paying one half of your monthly mortgage payment every two years. By increasing the frequency of the payments, you are cutting back on the interest you will pay over time. Contact your bank first to make sure there systems are set up to take bi-weekly payments.