How Credit Cards Offer the Most Terrific Opportunities to Save Money
- How Credit Cards Offer the Most Terrific Opportunities to Save Money
- Take advantage of reward score points.
- Enjoy bonuses when you sign-up
- Useful when travelling
- Protect you from the price
- Reduce interest rate by transferring balances
- Insurance for car rental
- Take advantage of gift cards.
- Mall discounts
- You don’t have to carry any balance
It is no secret that credit cards get a bad reputation, whenever credit cards are mentioned, most people would think about debts. It is very easy to spend when you are using a credit card since it is easy to swipe and forget about your spending. Credit cards also cost you a lot of money when the balance accumulates with interest, and you can’t pay it immediately.
However, if you use your credit cards properly and don’t swipe it for unnecessary things, you can save money instead of being buried in debt, for more tips by visiting Loan Advisor. Here are some ways on how credit cards can help you save up.
Take advantage of reward score points.
When you buy items using your credit card, you earn rewards points. You are not saving any money when you buy things, and you also do not get a portion of the item’s cost back. However, if you take the cash that you get around and put it into the bank directly, you will save some money on the things you purchased.
Remember that rewards from credit cards do not always come in cash, there are instances wherein you will get points or even earn gift cards that you can use at stores and other retailers. But if the retailers or shops you regularly go to are the ones where the reward points are redeemable, you already saved money on your next purchase.
Enjoy bonuses when you sign-up
When it comes to signing up for a credit card and being offered a bonus, you are technically not saving cash. However, if you charge a purchase on your card to qualify for the provided bonus, and you do it by purchasing items that you already wanted to buy in the first place. You can use the cash and put it in your savings instead since the credit card will help you buy the item.
Useful when travelling
Credit cards are handy when you travel, from buying tickets online to booking hotel rooms, it can get everything ready for you before your flight. Credit card companies offer travel rewards cards that make travelling cheaper than paying everything in cash. You will have the choice to accumulate air miles, which can be cashed in for your next travel, to the point that you may even be able to fly for free.
Some travel cards give customers perks such as covering for your checked bags at the airport, and that will save you some money. It can also give you a discount on your airline fees. While there are cards that charge you for foreign transaction fees, a good card will cover it up, so if you travel out of the country, that is one fee that you do not have to pay.
Protect you from the price
Price protection is one of the many offers given by credit cards. This means that if you purchase an item using a credit card and discover that it already costs lower within a certain period, usually a month or two, the credit card company will automatically refund the difference. There are cases wherein the credit card company will help you look for the exact item at a much lower price than you saw.
Some credit cards offer the users extended warranties on massive purchases such as gadgets, electronics, and appliances. This means that you no longer have to buy extended warranties, but you can also save your cash by covering for the repair costs instead.
Reduce interest rate by transferring balances
If you have a balance on your credit card that you are carrying and the interest rate is high, you can save a lot of money by transferring it to a credit card that offers a lower rate. You can use the 0% APR balance transfer provided by credit card companies to save money, and you can also avoid paying high-interest rates that usually go on for 21 months.
Insurance for car rental
When you rent a car for a trip, usually the agency’s rental coverage is used. The downside of it is that it can increase the rental rate for up to $20 every day that you have the car. If you rent a car for at least a week, you will have to prepare an extra $140. Most credit card companies offer car rental insurance, but only if you decline the car rental company’s insurance coverage, and you use your credit card to pay for the rental of the car.
Take advantage of gift cards
Although cash is seen as a better reward, you can still use your tips if you redeem them and opt for a gift card instead of the credit card company’s rewards partners. That means that you can redeem a cash reward worth $20 for a gift card that is worth $25.
If you love to go to the mall, then you can take advantage of the discounts issued by your credit card company. You can save money while you purchase movie tickets while you dine out, buy clothes, buy new shoes, and more. Every time you are buying something using your credit card issuer’s discount mall, you will get a certain percentage off. Check the online discount mall of your credit card issuer to review the retailers at the mall that offer massive discounts.
You don’t have to carry any balance
There are a lot of benefits in using a credit card, but it won’t be worth it if you carry any balance and are forced to pay any charges. You should pay the balance in full and on time every month to not have to pay for any late fees and any interest.
Credit cards are here to help you, and the only reason most people are in debt is that they fail to pay on time, and they abuse the card. If you can manage it properly and spend wisely, you can use all of the benefits offered by credit cards, and you can even save money.