If used properly, credit cards can be an excellent way of saving money. Assuming you make a controlled amount of purchases a month, and pay off in full the owing amount at the end of that month, most credit card issuers will not charge you interest. You can then use the other card incentives to your advantage.

Balance Transfers

You may also be offered a period in which you do not have to pay interest on balance transfers. With several credit cards you can use this to your advantage by moving the debt to providers that offer this service. Three credit cards each offering 6 months interest free on balance transfers gives you an 18 months interest-free loan.

Cashback on Purchases

Some card issuers offer cashback on purchases made, often between 1% and 5%. This is credited to your account on a monthly or annual basis, based on the amount you spend. Although the percentage doesn't compare to that of interest rates, it does add up if you avoid paying interest on balances.

Introductory Interest Rates

Many credit cards offer introductory interest rates to attract new customers. These rates can range from 0% to 14%, last for a single month or a whole year, and apply to credit card payments, balance transfers and sometimes even cash advances.

Other Benefits

Often card issuers will tempt you with discounts, money-off vouchers or points to collect by making purchases. Assuming you are not paying any interest on those purchases this often works out to be a good deal.