What is a credit card? It is one of the most preferred medium of financial transactions among consumers today. They are like a short-term debt you may use to carry out your daily expenses and pay them off in the form of a monthly bill. As long as you pay your bills on time, you don’t need to pay any interest. In fact, if used diligently, the best credit cards can even help you save money. Wondering how? Here are a few ways.
- Make Use of Reward Points
Credit card issuers have reward programs that users can redeem to get attractive benefits. Reward points have a value that you may use to avail gifts, gift coupons, special discounts, or other rewards. Some companies even allow you to turn reward points into real money. To make the most of your reward points, study your card’s reward point structure carefully and understand how the reward points work. The key is to pick the best gift coupons according to your needs. Remember, reward points have an expiry date, before which you must redeem them to get the items you want.
- Catch Up the Good Offers
You must be receiving several emails in your inbox that you ignore most of the time. However, some of them may actually help you save money, especially the ones that you receive from your bank or credit card company. Credit card issuers run different offers from time to time, especially during the festive time. That doesn’t mean you must run behind each of them and avail any opportunity that comes your way. Instead, shortlist the relevant ones and use them meticulously. Some of these offers may help get heavy discounts on dining, shopping, and availing of other services.
While browsing through the discounts and offers, avail only the ones you would have taken anyways. Don’t increase your expenses just because you are getting a deal on it. You will spend more rather than saving by doing that.
- Select the Best Card According to Your Lifestyle
Credit card companies offer different cards to suit different lifestyles specifically. Whether you are a frequent traveller, online shopping enthusiast, or a movie and dining lover, choose the best credit cards that are the best option for your requirements. You may also use a cashback card to get cashback on your dining, movies, or online shopping. You may use the cashback to make other purchases, thus saving money.
Don’t take a credit card only because you are eligible for it. You may save money by looking for sign-up bonuses. Ranging from cashback to free movie tickets, you can use this bonus to save money.
- Use the Right Card While Shopping Online
Many online retailers have tie-ups with credit card companies and banks. You are eligible to get an instant discount if you use a specific company or bank’s credit card while shopping on their site. You can easily find such credit card offers on e-commerce sites. They can help you save big while shopping online. Therefore, the next time you visit your favourite online shopping portal, don’t forget to check the credit card offers announced for the day. If you happen to have that particular card, you may get an extra discount on your purchases.
If you are not in a hurry to buy something, you may wait for a week or two. Credit card offers on e-commerce websites keep rotating. So, if there is no such offer on your credit card, it may come up in a few days. The money you will save is worth waiting.
- Save on Air Travel
Opt for a travel-oriented credit card if you frequently need to fly for business or leisure. It can offer you significant incentives on your flight tickets. Many airlines also offer frequent flyer programs, which you can avail to save money on flight ticket booking. You accumulate points with your bookings. You may swap them for your future trips to get discounted flight tickets. Besides the discount on flight tickets, you also get additional perks on your air travel, such as lounge access, free meals, etc.
If you travel abroad frequently, you need to pay a foreign transaction fee for transacting in other currencies. These fees may quickly add up and cost a lot. Therefore, it’s worth looking for a card that waives this fee.
None of these ways will work if you carry your balance and spend the saved amount on late-payment charges. Therefore, pay your credit card bills on time, in full, each month. Otherwise, the interest rate and the late-payment charges may cancel out all your savings and rewards. Not only this, paying your credit card bills on time will also help improve your credit score, which is highly crucial for your credit health and credibility.