Are you thinking of getting a credit card but are afraid that you might come under debt instead of being able to save money from the different incentives and benefits offered? Or maybe you simply have got a new credit card and are wondering how you can save money by using it. Well you seem to be in the right place because this write up will ensure that you learn a few tricks on how you can turn your credit card into a powerful tool to save money!
Reward Points vs. Reward Cards:
Almost all credit card providers have their reward points system on which you accumulate reward points by simply making purchases via your credit card. These points can be later used to get discounts if redeemed at various places which have partnered with the bank. However be aware that reward cards usually carry a higher percentage of interest. Hence if you have opted for a reward card for commodities such as fuel or grocery, make sure you pay your complete dues on time rather than just the bare minimum otherwise you will end up losing more money in terms of paying interest rather than saving. Also only get a reward card if you really need one because the discounts and cash backs are reserved to a specific service only.
Select The Right Card:
This is very essential. There are some incentives that you just can’t get on regular cards. For e.g. if you are a frequent flyer, then you should get a travel card which gives you air miles on spending on your air tickets and hotel bookings. The accumulated air miles can be redeemed upon your next trip. Not just that, you also get free access to VIP lounges that you might be paying for otherwise. If you travel in your personal car a lot, then a fuel card is a must have and if you have a big family then a grocery card could help you save your money by purchasing through the relevant card.
Keep An Eye On Offers:
It surely annoys getting spam emails/messages and even phone calls at times from your credit card provider. While running after such offers can land you into deep waters(read: hefty debt), however don’t ignore all of them too. Credit card providers usually have some good offers in the holiday/festive season apart from the usual offers that you get with your credit card.
Make Timely Payments:
A credit card will only help you save all those rupees only if you keep paying off your due balance on time. To make sure that you aren’t charged interests or late payment fines,make sure that you always pay more than the minimum if not all of your amount within the grace period. This will also improve your credit rating and you would be able to get a higher tier card easily or apply for another card from a different provider. In case you don’t pay your credit card bills on time, things can get pretty ugly.
Don’t Withdraw Cash:
Emergencies can happen anytime where you might be in need of cash urgently. While you can withdraw cash from an ATM using your credit card, it’s not a good idea at all because the interest starts accumulating on the withdrawal right from that very moment because there is no grace period. Also the interest rates are sky-high and you could end up paying huge amounts for the sake of convenience. A better idea is to always keep some cash handy.
We hope that following these smart tips, you will also be using your card to save on your monthly expenses and regulate your finances to your benefit!