7 Ways to Save and Earn Money With Your Credit Card
If you want to avoid getting into debt or paying hundreds of dollars in interest and fees, using a credit card necessitates prudent spending and budgeting. However, if you shop wisely and use your credit card wisely, you can use rewards, points, and other perks to save or even earn money.
You can do it without going into debt if you stick to two simple rules: charge only what you can afford and pay your balance in full every month. Learn how using your credit card wisely can help you make money rather than lose it.
Use the 0% Purchase APR
Many 0% introductory rates are only available for balance transfers. Some credit cards, however, offer 0% introductory APR on purchases as well. This means that any purchases you make during the offer period will also be subject to 0% interest. If you have a large purchase to make, such as new furniture, a medical procedure, or a vacation, a credit card with a 0% APR will allow you to make multiple payments without paying interest.
Use a Cashback Credit Card to Pay
Cashback credit cards allow you to earn cash rewards for using your credit card. You can maximize your cash earnings if you use your credit card for the majority of your expenses, rather than just those that earn the most rewards.
The caveat is that you must be able to pay off your card balance at the end of each month. Otherwise, the interest you pay will quickly outweigh any cashback you receive.
Avoid Car Rental Insurance
Using the car rental agency’s rental coverage can raise the cost of your rental daily. Depending on the credit card you use, however, that extra insurance may be unnecessary.
Most major credit cards offer car rental insurance if you decline the car rental company’s coverage and pay for your rental with your credit card. Every time you rent a car, you could save tens or hundreds of dollars.
Make use of the Discount Mall
Many credit card companies have a “discount mall,” or a group of national retailers with whom they collaborate to offer cardholders regular discounts.
It takes some forethought, but you can save money on dining, movie tickets, flowers, and other purchases by using your credit card issuer’s discount mall. You can usually find a list of these stores, as well as how much you can save, on the website of your credit card company.
On Retail Cardholder Discount Days, shop
If you only carry retail credit cards, you may be losing money due to high-interest rates and limited use. However, if you only use retail cards on occasion, you can benefit from their rewards programmes.
These cards frequently provide benefits such as special discount days for cardholders. Check your rewards programme or contact your card issuer to see if your retail credit card has special cardholder discount days. Also, only sign up for retail cards at stores where you already shop frequently.
Search for a Sign-Up Bonus
If you open a credit card just for the sake of opening one, you may end up damaging your credit. If you are already planning to open a new card, look for one that offers a sign-up bonus.
Cashback, free hotel stays, and points redeemable for airline tickets are all available as bonuses. Earning the spending bonus usually necessitates spending a certain amount on the credit card within the first few months of ownership. If you can meet that requirement while also paying off your balance, you can earn the bonus without paying additional interest.
Advantages of Extended Warranty
Buying an extended warranty on electronics can save you money on costly repairs or replacements. However, these protection plans are frequently expensive.
Some credit cards automatically provide a free extended warranty on electronic purchases. Before you go shopping, read the fine print on your credit card to see if it provides this coverage and what you need to do to take advantage of it.
There are no foreign transaction fees to pay
On purchases made in other currencies, most credit cards charge a foreign transaction fee, which is typically 3% of the transaction amount. These fees can quickly add up if you travel internationally.
However, some credit cards waive the foreign transaction fee. If you frequently travel outside of the country, a card with this feature can save you a lot of money.
If you have a balance on a credit card with a high-interest rate, you could save hundreds of dollars by transferring it to a credit card with a lower interest rate.
In case, if you carry a balance and pay finance charges, none of the card’s benefits is worth it. Each month, pay your balance in full and on time. Otherwise, the interest and late fees you end up paying will likely cancel out any rewards or savings you may have earned.