The savvy credit card users know the nitty-gritty things regarding how to save money on credit cards. Wise and optimal usage of credit cards is an art. Inserting 10 types of credit cards in the wallet goes in vain if you are not aware of the nuts and bolts of smartly using it. With financial inclusion being the talk all around the world, it is ideal to hinge on the plastic cards than to stick with the hot cash.
8 Smart Ways To Use Your Credit Card
- Credit card debts
Very often, people buy new credit cards to consolidate the old credit card debts. This strategy works like magic if the transfer of credit takes place at 0% fee, but many banks charge around 3% for consolidating credit card debts. Further, the new credit card should offer lower APR than the older cards for better savings.
- Reward cards
Reward cards are magnetizing, and they allure a greater number of people. The rewards are quite inspiring, but the fact is you have to clear the credit card balance on time to eligible for the rewards. If you cannot commit to this criterion, go for cards with lower interest than the high-interest reward cards.
Punctual payment habits will help you stay away from exorbitant penalty fees and charges. To save money on credit cards, it is ideal to pay a little more than the exact credit amount. The additional money can earn you a small interest over a period, and some credit card companies reward their customers for such practices.
- Right choice of card
Do not turn on all the cards rather pick the one that blends with your shopping habits. For example, Citibank Hong Kong offers Prestige Card, Premiermiles Card, Cash Back American Express Card, Rewards Card, Clear Card, Octopus Credit Card and Diners Club Card. Veteran credit card users wisely choose their cards. If you do not use public transport in Hong Kong, do not apply for Octopus Credit card. Frequently dining customers can benefit from Diners Club Card and not the others. The online shoppers can hold Clear Card; while the regular overseas travelers can fix with PremierMiles Card.
- Avoid Emergency usage
Improvident people, who are without emergency funds, may rely on their credit cards to manage such scenarios. Although it may seem smart to handle the financial crisis, in the long run, it can turn you to be reckless in savings. Therefore, do not respond to such temptations.
- Hold a spare card
With a reward card in your pocket, you may be compelled to overspend. To avoid emotional shopping and spending, carry another credit card with the cheapest interest rate. This will save a lot of money on your credit card.
- Ask for leverage
For maintaining your stance as a good cardholder, you deserve some leverage. With your good will, request for a lower rate of interest or extended credit limit. The credit card companies listen and work for their genuine customers.