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Credit Cards vs. Car Insurance


How often do you get credit card offers in the mail? I actually receive fewer parcels than I used to, but when I was in college, I was getting a new credit card offer every couple of days! It was kind of fun to receive all of those offers back then – it kind of made me feel important. Some company out there believes that I’m grown up enough to have one, and they trust that I’ll pay back the money that I’m borrowing.

Comparing the Interest Rates

When you get those offers in the mail, what is one of the first things that you do? I bet you start scouting for the interest rates. If you see that the card has an interest rate of 25%, you most likely throw it in the garbage. However, if the interest rate is somewhere below 12%, you start to think that maybe you should send in the paperwork to see if you get accepted. After all, the percent is pretty low compared to most credit cards. If you’re accepted, you’d really be a premium customer.

Why is it that we consider the interest rates on our credit cards? After all, we should all be paying off the balance each month, making the interest rate completely irrelevant! I suppose that one of these days we could get into a jam that would force us to keep a balance on the card for a month or two, but for the most part, that interest rate makes no difference, and we all compare the rates before we commit to a card.

What Should We Compare?

If we like to spend time comparing two different companies, why not spend the time on something that actually matters, like car insurance rates?! You could spend as little as 20 minutes performing a car insurance comparison and get 3-4 different quotes for your autos at home. By putting in this minute amount of time, you could save as much as $20 a month, which equates to $240 a year. That’s like getting paid $720 an hour!! Who wouldn’t take the time to drop their insurance rates?

Are you overly focused on credit card interest rates, or are you more concerned with your car insurance?



My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. Well said. A great way to save money is to shop around, as each car insurance company will carry a different risk profile. A good example with your reference to credit is someone with a poor credit score will likely be rated differently between multiple companies. By receiving several quotes it will be easier to find the company that views your credit the best.

    • It’s amazing how much varience there is in those car insurance quotes! It’s always a good idea to get a new quote once in a while, just to make sure you’re not giving your money away!

  2. Ola! Lifeandmyfinances,
    Neat Post, If you have bad credit, you may be finding that getting a good deal on your car insurance is not an overly easy task. In the world today, more and more people are finding themselves in serious financial trouble and bad credit is dramatically on the increase. It is restricting people’s lives and it often causes them to get into deeper financial trouble, as the cost of things such as their car insurance goes up.
    Keep up the posts!

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