Apart from the convenience of buying now and paying later, your credit card can do so much more for you. You can save a lot of money if you know how to maximize your credit card. It starts with responsible use, that is, paying your balance in full when due. This will not only save you costs on interest but will also help you maintain a good credit profile. Here are 13 ways you can save with your credit card;
Transfer balances to reduce your interest rate | Save With Your Credit Card
There are so many low-interest credit cards that can help you save on balance transfers. If you’re currently carrying a balance on a credit card with a high-interest rate, you can save hundreds of dollars by transferring that balance to any credit card with a lower interest rate. Taking advantage of a 0 percent APR balance transfer offer will save you even more money as you can avoid paying interest for several months depending on the credit card you choose.
Use 0 percent purchase APR for big purchases | Save With Your Credit Card
Do you know there are credit cards with 0 percent introductory APR on purchases? Apart from those that offer 0% introductory rates on balance transfers, some credit cards offer 0 percent introductory APR on purchases as well. Thus, if you have a big-ticket item to purchase—new furniture, a medical procedure, or a vacation—using a credit card with a 0 percent APR will let you break up the purchase into multiple payments without having to pay interest.
Don’t carry a balance | Save With Your Credit Card
None of the benefits of the card will be worth it if you carry a balance and pay finance charges. Pay your balance in full and on time each month to avoid paying interest and late fees.
Pay for everything with a cashback credit card | Save With Your Credit Card
Cashback credit cards let you accumulate cash rewards on your credit card. If you can use your credit card to pay for almost everything, and not just those purchases that earn the most rewards, you can max out your cash earnings.
Apply for a credit card with a sign-up bonus | Save With Your Credit Card
There are a lot of credit cards that offer good sign up bonuses. Bonuses range from cashback to free hotel stays and points you can use for airline tickets. Earning the spending bonus only requires you to spend a certain amount on the credit card within the first few months of having the credit card. If you can meet that requirement, you can save with your credit card.
Redeem your cash for a gift card | Save With Your Credit 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. Gift cards will enable shop for free and save with your credit card.
Skip the car rental insurance
Using the car rental agency’s rental coverage can increase the price of your rental up to $20 each day. That’s $140 if you rent a car for a week. Most major credit cards provide car rental insurance as long as you decline the coverage offered by the car rental company and pay for your rental with your credit card.
Use your credit card issuer’s discount mall
It takes a bit of planning ahead, but you can save money on dining, movie tickets, flowers, and more by making the purchase through your credit card issuer’s discount mall. Take a look at your credit card issuer’s online discount mall to see which retailers offer discounts.
Earn free travel or hotel stays
Use a travel rewards credit card to earn miles or points that you can redeem for a free flight or a free hotel stay. You can use the free flight for an annual vacation, holiday travel, or weekend getaway.
Shop on retail cardholder discount days
Retail credit cards are not the best credit cards to have in your wallet because of the high-interest rates and limited use. However, some of them have great rewards programs offering perks like special discount days for cardholders. Read through your rewards program or call your card issuer to find out if your retail credit card offers special cardholder discount days.
Take advantage of price adjustments
Look for a credit card with purchase protection in order to take advantage of price adjustments and save with your credit card. Such credit cards will refund you the price difference. The ease of getting the benefit depends on your credit card. With Citi, for example, you only have to register your item with the online Price Rewind tool. Discover and Chase require you to complete a claim form and provide a receipt showing your purchase.
Extended warranty benefits
You want to purchase an extended warranty on expensive electronics, but spending extra money isn’t an attractive option. If you use the right credit card, you can automatically get an extended warranty and save with your credit card. Check your credit card offers before you shop to learn whether any of your cards have extended warranty coverage and what you have to do to take advantage of the benefit. Keep your purchase receipt for the duration of the warranty so you can easily submit a claim in the event of a product failure.
Pay no foreign transaction fees
Most credit cards charge a foreign transaction fee, usually 3 percent of the transaction amount, on purchases you make in other currencies. If you travel internationally, these fees can add up quickly. Some cards waive the foreign transaction fee on all their credit cards, so if you’re going out of the country, a card that offers this feature could be an excellent pick.
This will not only save you costs on interest but will also help you maintain a good credit profile. Here are 13 ways you can save with your credit card;