Obtain up to eight weeks of free credit on your credit cards as a result of buying just after the billing date and paying in full before the due date.

Tom makes occasional large purchases with his Visa credit card.  The billing date is the first of each month.  Interest begins to accrue on the due date which may be as long as 28 days after the billing date.  Tom purchases a new stereo system for $1,000 on June 2.  It shows up on his July 1 statement and is not due until July 28.  By making his purchase the day after the billing date and making full payment by the due date, Tom receives a eight-week interest free loan. 

• If you maintain a balance owed on your card search for a bank that offers a low interest rate but no grace period.  On the other hand, if you generally pay off your card monthly or occasionally have a small balance, go for the lowest rate card with a grace period.
  
  
• If you make a lot of purchases with your credit card consider obtaining a bonus card that pays you a cash bonus based on your level of spending.   The rebate is based on spending levels and not outstanding balance.
  
  
• To minimize fees and interest paid, consider carrying no more that three credit cards as follows:  (1) a no-annual-fee card having a grace period to allow you to make monthly purchases and full payment within the grace period without incurring a finance charge, (2) a low interest rate and no annual fee card for purchases you intend to finance for several months, and (3) a low rate card for business purchases only.  Interest paid on business borrowing is generally fully deductible.  Shop the lowest rates, fees, and length of grace period by referring to Bank Credit Card Interest Rates published the first week of each month in the Wall Street Journal.  You can also order Card Track, a report that lists the lowest interest rate and lowest annual fee cards for the month.  (Ram Research, Box 1700, Frederick, MD 21702)  The cost is $5.  Money Magazine also publishes a monthly column showing the best credit card deals for people who carry balances and for people who pay their card in full every month.
  
  If you already have a card that imposes an annual fee, ask the company to waive it if you have been a good customer, you use the card frequently, and you pay on time.
  
  
• Keep track of credit card purchases by deducting the charges from the balance in your check book register.  Pay the charges off by the due date.