When it comes to credit cards, most people think of how they can help you spend more money than you have or push you into debt if you don’t pay off your balance each month. However, only one side of the coin is that a credit card can also save you money. Credit cards can help you save money in ways you might not have thought of before, from ensuring your purchases to protecting you from fraud to assisting you to manage your cash flow effectively. By following these nine tips, you’ll be able to get the most out of your credit card and manage your spending better overall.
- Get money with cash-back credit cards.
Cash-back credit cards like slice offer a great way to save money. These credit cards provide an easy way to save money each month with cash-back rewards. This makes paying with credit cards much more beneficial than paying with debit or even cash – at least as far as saving money goes! You get a percentage of every dollar you spend back in your pocket, which means you can rack up significant savings if you spend a lot on everyday purchases like groceries and fuel.
- Earn bonus reward points
If you’re looking to take advantage of extra savings, look into getting a credit card with reward points. Certain cards like slice cards allow you to earn up to five times more points on specific purchases than other cards using promo codes. For example, if you purchase gas and groceries with your credit card, you could earn double or triple points on those transactions. Those extra points could be enough to cover all your rewards spending for a year!
- Take advantage of rewards programs
The first step in using your credit card to save money is to sign up for a rewards program by taking advantage of perks like cash back, travel points, and discounts using discount codes at retailers that accept credit cards. Even if you’re already signed up for a rewards program and only use one card regularly, consider looking into others—many companies offer introductory bonuses on new accounts. And with some credit unions offering debit cards that come with rewards programs (just like your traditional bank), you may find yourself saving more than ever before just by switching banks.
- Do your shopping online
There are a plethora of reasons why online shopping is a godsend: no sales tax (in most states), easy comparison shopping, and you can browse without feeling self-conscious. But what’s especially great about it is that there’s often free shipping or discount voucher involved. In other words, if you’re already buying something from one site, the chances are good that you’ll get free shipping with another purchase from a different store. Online discounts with coupon codes can also be combined to save money further; for example, if you’re spending Rs 400 on books from Amazon but decided to add a new pair of shoes to your cart for Rs 200, then suddenly all of your items ship; for free!
- Credit cards offer extended warranties
If you’re buying something that has a warranty, your credit card company may offer additional coverage. Many cards extend guarantees by a different year, which can be worth it if your credit card offers a better range than what you’d get through traditional warranty options. For example, slice cards often provide better coverage than other brands with their extended warranty program. As long as you use your card to make a purchase that includes an extended warranty, you should be able to take benefit of their program.
- Use It for business purposes
There are numerous ways to use a credit card to save money. For instance, if you’re a business owner and need to buy products in bulk or make payments to suppliers, a credit card can help you secure better deals by providing access to special incentives offered by merchants or banks. Or, if you purchase something on your card that drops in price within 30 days, many cards will provide price protection. In some cases, you may even be able to get an extension of up to six months on returns from specific merchants if you pay with your credit card. And one last thing: If your merchant is affiliated with any significant rewards program (like Visa or MasterCard), then using that card can also help maximize rewards or voucher codes and keep more cash in your pocket.
- Use It as an emergency fund
If an emergency arises (and they always do), you can use that cash to cover whatever unexpected expenses come up without having to tap into your savings account or take out a loan. The same goes for cards with travel rewards—you never know when an accident or illness will cost you thousands of dollars in medical bills. Being able to pay with plastic instead of needing a quick infusion of funds can save you from big headaches down the road. Just be sure not to let any balances linger!
- Do not overspend on It
When using a credit card, it’s easy to be tempted to overspend. If you know you’ll have to pay interest if you carry a balance, it might be tempting to pay only part of your bill and rack up more charges to beat or avoid paying that interest. Instead of getting trapped in that cycle, spend within your means and don’t use your credit card as a way of carrying debt. Also, make sure you always pay off your balances each month because paying off debt is one of the most powerful ways to grow wealth over time.
If you’re like most people, your credit card probably sees more use than you ever imagined. But while credit cards are a fast and convenient way to pay for things, they’re also fraught with pitfalls if you don’t know how to use them responsibly. To save yourself money and keep from overspending, there are several things you can do:
- Budget: Set clear limits on how much you’ll spend each month—and stick to them.
- Before swiping, ask yourself whether you need that new product.
- Set up an automatic transfer from your bank account to pay your credit card bills.