Who doesn’t love credit cards? It gives you that financial freedom to buy now and pay later. Credit cards also come with many offers and rewards. Some save your money. Others provide access to lifestyle benefits.
But did you know that you can get into debt if you’re not smart with how you use your credit cards? You may as well end up paying hundreds of dollars in interest fees. But if you are smart enough, you can save money with a credit card. How? Here are 10 smart ways to save money with a credit card.
Check Out Sign-up Bonus on Credit Cards
Don’t just get a credit card for the sake of it. Get a credit card with a sign-up bonus. Many credit card companies offer perks, such as free hotel stays, cashback, airline tickets points, and shopping credits. To earn the sign-up bonus, you have to spend a certain amount on a credit card. Just remember to pay it off on time, so you can enjoy the bonus without paying any interest.
Get Cashback or Rewards Point Credit Card
How much you know about reward spending with this card will tell what you will get in the end. You are going to earn reward points for some specific types of expenditures. If you are using high-end credit cards, some of them come with benefits and vouchers. When you understand what you are entitled to with each spending, you are good to go.
Pay Credit Card Bills on Time
Paying penalties when you default is something you should prevent at all costs. When you pay your credit card bills on time, you will avoid harsh fines. When you default, bear in mind that your credit score will also be affected negatively.
Separate Your Wants From Needs
Caution in spending is another intelligent way to bring down the burden on your card. With global poverty affecting the world economy, it is important to separate your needs from wants. Spend only on necessities and ignore the desires that you can do without. Do you need that PS5? When money is tight, don’t spend unless necessary.
Transfer Balance to Cut Down Credit Card Costs
Another smart way to save money is to transfer the balance from a credit card with a higher interest rate to a lower interest rate. This step will surely save you hundreds of dollars in return.
The advantage that comes with a 0% APR balance transfer offer will keep you covered. Make sure you pay enough every month, and in a short while, your balance will come down to zero.
Avoid Automated Teller Machines (ATM)
Some credit cards allow you to withdraw cash through the ATM with your card. But this will come at a charge to your account. You can do an online transfer and get what you want without the ATM at lesser costs. When you avoid the ATM, you are saving some cash that will be useful for other purposes.
Watch Every Payment You Make
There are sharp practices that you must be on the lookout for. Before clearing any bill with your card, make sure you add up the figures. In most cases, people have been made to pay extra. The majority of today’s online shoppers are too much in a hurry and do not create time to pay attention to some minor details.
This method is a check and balance measure that might prove helpful in some instances. When you adopt this strategy, you will be amazed at the extra costs you would have paid without carrying out the checks and balances.
Examine Renewal Fees
Another smart way to bring down the cost is to pay attention to the card’s fee structure before you go for any of them. Some of the cards do not have renewal fees — they will be the best for you and for anyone for that matter. Cards that allow fee reversal when you spend a certain amount every year are also welcome.
Take Advantage of Price Protection on Credit Cards
Get a credit card with price protection benefits. It will help you save money. Price protection is a benefit that will refund your money with the price difference after a price drop of the item you bought with your credit card. Make sure to check the policy claim on the refund.
Don’t Pay Foreign Transaction Fees
You heard it right! Don’t make purchases in other currencies. If you’re traveling internationally or paying in another currency, those fees will add up quickly. But some credit cards waive the foreign transaction fee. So, make sure to check the foreign transaction fees before getting a credit card. You can save money on a credit card without paying any foreign transaction fees.
The Bottom Line
The tips above will help you save money on your credit card. You will be amazed at the magnitude of savings that will come your way if you put into practice all the steps shared above.
