Switching Credit Cards May Prove Fruitful

Despite the downturn in the economy, most Americans are still using credit cards due to their versatility, worldwide acceptance, loyalty rewards and overall ease of use.

A handful of issuers have upped the ante on the competition, offering more competitive rates, better points systems or other inducements to get people to apply for a credit card. Balance transfers have also become important in deciding which card is the right choice.

Many people have turned to popular credit card ratings web sites to sort through the various offers, discounts and online availability. Some sites offer very basic advertisements, while others provide deeper detail, including the ability to search by FICO score, check application status and even calculate the amount of savings provided by a balance transfer.

Tools such as these can help consumers save hundreds, if not thousands of dollars over just a few years by finding the right card with the best interest rate to suit their needs.

While it's true that American consumers are paying down debt at a very rapid rate, it hasn't taken the issuers long to adjust to this shift in sentiment and respond with more competitive rates for serious savers. Naturally, one's credit score always plays a crucial role in acceptance, and lowering one's balance owed is now more important than ever. With finances in flux, however, now might be a very good time to consider switching cards or consolidating debt into one card at a lower rate.

The savings could be substantial.