11 Ways Your Credit Card Can Save You Money
Do you believe credit cards can save money for you? Yes, it’s true. You can actually save money while using credit cards if you can relate to the tips mentioned in the article.
The most credit savvy among us has been able to use credit cards to their benefit in order to wisely and optimally save money even while charging on their cards.
Most advice about credit cards warns you about the dangers, the risk of getting into debt, and the potential for paying hundreds of bucks in interest and fees.
With my experience of using a credit card, I fall into category one. I can see that because of the below reasons.
Use Interest Free(0% EMI) purchase.
There are many cards that offer 0% interest fee if you want to convert a big purchase into EMI’s. These offers generally come during festive sessions on most of the online websites.
Sometimes the interest is waived off by vendors and sometimes this comes from Credit card companies.
I bought an iPhone 7 plus with a discount price less than ₹6000 on its real price using HDFC bank’s credit card.
Use Credit card aggregator App for earning voucher codes
Do you know you can actually save money while paying credit card money?
Yes. You can actually save money while paying via credit card by using CRED app.
There is no reason to miss the extra cashback & rewards that come by just paying the bills through the app.
You are anyways going to use net-banking to pay your credit cards, why not to double the benefits.
CRED is the only app in India through which you can earn reward points by paying your credit card bills.
I have also written a detaild benfit of using CRED in this article:
Apply for a credit card with a sign-up bonus
There are many credit cards with sign-up bonuses on the market. Bonuses range from cashback to free hotel stays and points you can use for airline tickets or buy itmes from categories like electronics, fashion etc.For example, if you sign up to American Express credit card with this link and spend ₹5000 in first 90 days you will get 2000 bonus points which is equal to ₹500. Additionally you will get zero annual fee for first year.
Always try to get a new credit card by using someone’s refferal link it alwaya gets you more benfits.
Redeem your cash for a gift card
While cash may be the more versatile reward, you can maximize your rewards if you redeem them for a gift card with the credit card issuer’s rewards partners. For example, you may be able to redeem 750 bucks in cash rewards for a ₹1000 gift card of Amazon or Flipkart.
Also you can buy some products from their store that can have better price compare to market rate.
Pay total Outstanding and pay on time!
Follow a descipline in payment if you want to maximize your benfits from credit cards.
By simply practicing good payment habits, you’ll avoid exorbitant finance charges and penalties levied upon your account.
It’s best to pay off your outstanding before 2 days(at least) to avoid any late fees or finance charges. Use an app like CRED to see a consolidated view of all your credit cards and their payment due dates.
Avoid relying on credit cards to cover an emergency.
Some people I know of don’t plan for emergency funds and end up relying on their collection of credit cards to bail them when an emergency arises.
Also, they love to rotate money from one credit card to another credit card. However, credit cards should only be used when there is an advantage or extra benefits not for the emergency.
I plan for payments for the outstanding credit card bills before using it.
Talk to your card issuer about your Annual Fee Waiver
If you’ve got a good history as a cardmember, you may have some leverage here. When you’ve been a customer for a while, give your card company a call to discuss the possibility of cutting you a break on the rates. They’re more amenable to this type of request than you think since card companies would love to hold on to their good clients.
I have negotiated to waive off my annual fee with American express card worth ₹ 4500.
Don’t use your card for cash advances.
Avoid withdrawing cash amounts from credit cars. There are many credit cards that provide withdrawing cash amounts from ATM’s. But there are fees involve it.
Try not to use your card for any form of cash advance — it’s not worth what you’ll pay for the convenience.
Earn Cash Back
Cashback is one of the hottest trends nowadays, especially among online wallets and online websites.
But did you know that credit cards have been offering this benefit, since the beginning?
While only a few credit cards in India offer direct cashback (e.g. Standard Charted MANHATTAN Platinum card), a number of them provide the facility of easily converting reward points into statement cash credit.
The rate of cashback offered also varies for different credit cards. Some offer cashback on all purchases while others give extra benefits to select
spendings like those at supermarkets or departmental stores. For example Standard Charted MANHATTAN Platinum card offers you direct cashback of 5% when you swipe your card on departmental store like Bigbazaar- after all who doesn’t like a credit on their monthly statement.
Improve Credit Score and Save Money
Credit cards can affect your credit score or credit history in several different ways, and that process begins as soon as you apply for one (even if you’re denied). The main principle you need to follow is to use your cards responsibly by always paying your bills on time or before 1 day, but there’s more to successful credit card management than that.
Get a Card With No Foreign Transaction Fee
The fees for using your credit cards in other countries can really add up. To save money on those, get one (or more) of the many credit cards that charge no foreign transaction fees. Using these is also cheaper than using the local currency because credit cards tend to have the best exchange rates.
Click here for a discount link.