5 Desperate Hacks to Save Money through Credit Card
Credit cards are common anywhere in the world. All walks of life at one point in their life has seen one, or even use one in their life. For some, a credit card is an answer for their temporary cash need. For the others, they simply use credit cards to avail of its freebies and benefits offered.
Credit cards should be used properly. Failure to do so might stick you to a long fight to indebtedness. The wise credit savvy ones know how to benefit from a credit card and saving their cash for the meantime.
Is this really possible? Here are some guidelines on how to save money using credit cards.
Research before Choosing a Credit Card
Many financing companies may offer you their credit card products carrying different freebies or rewards. As much as possible, do not focus on just one credit card. Inquire as many as you can and compare the rewards. Align what you will choose the lifestyle you have, and according to your priority.
For example, if you love to travel and you’re planning on getting a credit card that might help you save on travel costs, pick the one that converts your purchases to travel points. But do not be mistaken to those who claim they offer miles points, where in fact, they’re just a credit partner to selected hotels and travel agencies. Choose the one that really partners to an airline of your choice.
Depending on your need, there are credit card products that are tailored-fit to your preferences.
You can check the internet for credit card companies who have an easy application and even has a consideration even if you have a bad credit record just like this website - https://www.firstchoicefinance.co.nz/bad-credit-loans-nz/. Just read and understand the terms and conditions before signing up.
Win With Credit Card Rewards
Rewards are one of the best marketing strategies of credit card companies to lure customers in getting their products. Aside from allowing you to stop using it, there are also discounts or cash backs offered that can help you save more money.
Some credit cards also have e-credit cards where purchases online are discounted when using their shop portals.
Be mindful of the interest rates imputed to your credit cards. This might have the benefits or an added costs. Some credit cards, although imputing higher interest rates, offers cash back rewards or discounts in various shops or groceries. When you compute for the total savings, it ended the same as your other credit cards that offered low-interest rates but lesser rewards.
Pay on Time and Beyond Minimum
There are two dates you should be familiarized when using a credit card: one is the cut-off date, and the other one is your due date. The cutoff date tells you what days are included in your bill. The due date is the period you should pay your bill. The due date usually comes a month after your cut-off date, though not all credit card companies follow the same pattern.
To avoid extra charges and penalties, never missed out on your monthly credit card payments. It’s most favorable if you always pay in full, but if you weren’t able to cover the whole amount, at least pay above minimum so that your principal can be reduced.
Some credit cards even offer rewards for those who always pay in full, or might give you an additional credit limit because you are tagged as a good payor.
Ask your Issuer to Lower your Rates
If you pay your card bills on time and often in full amount, you might be entitled to a lower interest rate. The key to getting one is asking.
Asking for lower interest rates require much persistence on your part. Chances are, you might not get a favorable response the first time you asked for it. Just keep on pushing your lack and who knows, the next time you call, you’re already approved of low-interest rates.
Here’s how: Before calling or writing to your credit card company, study carefully the rate you want to have. Of course, do not ask for a too good to be the true rate, just align it with what you think is reasonable for you. Once you have spoken to an employee and your request was not granted, try to call again some other time and make sure the next time you call, you’re speaking directly with the supervisor who can decide more on your account.
Don’t Rely on Credit Cards During Emergency Situations
Rule of thumb: Always have savings strictly for emergency purposes. Never rely on credit cards for these type of expenses, not unless you are left with no choice but to use one.
Swiping your credit cards for huge emergency purposes like huge hospital bills may lead to prolonging indebtedness as even the minimal amount due might be above what you can pay in a month. As a domino effect, this will leave you no choice but to pay more on penalties or late payment charges. Try looking for another type of loan during these times. But if the only resort is your credit card, ensure that you’ll be able to pay it on a shorter term.
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