How to Save Money With Your Credit Card
5 Smart Tips You Should Read Right Now!
Like so many other things in life, a credit card can be your friend or your foe, depending on how you approach its usage. Although it makes perfect sense to first and foremost focus on the shortcomings of owning a credit card you should always look into different providers. Check out their potential drawbacks before you make up your mind.
Depending on the kind of credit card you choose and how you decide to spend your money with it, you can definitely save a pretty penny, make smarter purchasing decisions, and earn quite a number of perks. Let’s go over a few methods you can use to spend your money more wisely, get frugal, and learn how to save money with your new credit card for when it really counts.
1. Regular Payments are Half the Battle
You’re probably extremely happy if you can cover all of your bills in time and in full, but what about going a little bit further with your credit card bill? For starters, regular payments ensure you’ll raise your credit score, but instead of sticking to those bare minimum payments, you can add a little extra money to pay off your balance even faster.
This is a perfect preventative strategy to make sure you won’t get any penalties from your credit card provider. In turn, you’ll actually manage your finances much more efficiently. And this without overburdening your income, because a little can really go a long way when it comes to covering your credit balance. In fact, chances are that your provider will reward such steps.
2. Do Your Homework Before Applying
One of the most important steps that will make or break your money-saving efforts is the research you conduct before you select your provider. This is especially vital if you reside in areas with so many different options, such as Asia. You want to make an informed decision, and not rush into your choice. For example, if you need a cashback credit card in Singapore that is perfect for your spending habits, you should look into different options, benefits, pricing models, so that you can pick the card that makes the most sense for you.
There are unbiased and informative comparison platforms that serve you to get a clear view of your options and the necessary investment you’d make for different cards on offer. Instead of instantly jumping at the card that seems to have the best cashback program, you can actually get a better idea of all other options that you can afford and that fits your lifestyle.
3. Stick to Fewer Cards in General
Although you can typically pick and choose how you manage your finances and even spread out your spending across more than one or two credit cards, financial experts advise against such a move. At least unless you’re completely certain you can cover all of your debt and expenses effectively and not fall behind.
When you own too many cards, it’s much more likely for you to have haphazard spending habits than to have a more structured approach to how you use those very same cards. It makes more sense to use one card or two of them so that you can be smart with your spending choices, and prevent yourself from piling on unnecessary debt that can quickly become unmanageable.
4. Earn Various Rewards
Your lifestyle is unique, and different cards accommodate different lifestyles so that you can save up on the things you spend the most on. If you travel for business and always have carryon luggage, if you need frequent plane tickets, or if you eat out at your favourite restaurant on a regular basis, and always use your credit card to cover those expenses – you can actually collect all kinds of points and earn rewards.
For example, frequent flyer miles are often loved by business travellers, while earning enough points gives you the ability to redeem them in exchange for a gift card or use cashback programs. Loyalty is something that credit card providers truly appreciate, and rewards never fail to ensue, you just need to find a program that suits you the most before you pick your perks.
5. Protection for Customers
The convenience of owning and using a credit card extends to protecting your purchase decisions in several different ways. For instance, have you ever made a poor decision and bought something only to discover that it existed at a lower price in a different store?
Many credit cards offer price protection so that you can either return the item and buy it at a lower price or just return it and get your money back. The same goes for items you buy that you never receive for whatever reason, credit card laws ensure that you can get that money back if you never receive the product.
Also, some level of insurance extends towards your purchases and valuables that might not be covered by the manufacturer. So, if a product has a fault or gets broken within a certain timespan, you can get in touch with your provider to see if you can get a refund or a replacement. Although you can still carry cash for your expenses without a dozen credit cards at your disposal, one or two credit cards could help you become more frugal, save on different spending habits, and refine your money management skills.
Finally, the wiser you become with the entire credit card selection process and how you monitor your spending, the better your chances are of saving money in the long run. Start using these tips to achieve just that, and your credit card will definitely be your friend, not a foe.
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