How To Save Money On Credit Cards?

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.

save-money-credit-cards

8 Smart Ways To Use Your Credit Card

  1. 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.

  1. 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.

  1. Punctuality

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

Advertisements

Smart Ways To Use your Credit Card

Credit cards have brought a wave of technological amelioration in the financial sector. Especially in Hong Kong, consumers prefer master cards for more than just convenience. Credit card offers like Merchant promos and Mileage points offer immense benefits to them.

smart-ways-to-use-credit-card

How To Get The Most Out Of Your Credit Cards?

Here are a few tips and tricks to help you get the most out of your credit cards.

  • Select an appropriate card

Choose the Visa card that earns you maximum mileage points and other benefits in the category of your preference. For instance, if you are a traveler, buy the one that fetches you maximum points on airfare and hotels.

  • Avoid Piling up of Credit Card Balances

The interest rates hurt if you let your credit card balances slide up month after month. Hence, it is always wise to use the scales as to and when necessary.

  • Always spend within your limit

The size of your credit card limit affects your other expenses on cards and loans. Too little an amount will create trouble in case of big spending like International flights, while an ever-expansive credit limit will lead you to useless expenditures.

  • Optimize your Reward Points spending

Don’t squander your reward points on low-value stuff. Make the most of your additional benefits like concierge, travel insurance, etc.

Are you now ready to spend flexibly using your credit card without having to worry about cash?

What Credit Card Provides The Best Rewards For Businesses?

We know that many small business credit cards provide us with rewards and benefits for our business. But, which one is the proper fit for your business? Here’s a list to answer your question:

best-business-credit-cards

Top 5 Best Business Credit Cards

Citi Prestige Card – With a huge number of benefits like complimentary nights at hotels, airport lounge access, unlimited points that do not expire, preferential mileage earnings, cash rebates, and extra annual relationship points etc., this card is one of the best options for benefits in Hong Kong.

Citi Rewards Card – This credit card also makes it to the list of most beneficial cards for businesses in Hong Kong with its rewards such as first-year annual fee waiver, airport lounge access, and special offers for birthday months, points that never expire and redemption of cash coupons in, the form of movie tickets etc.

Ink Business Cash Credit Card – With an annual fee of 0$, this credit card is the best one if you are viewing for cash back rewards.

The Enhanced Business Platinum Card from American Express OPEN – With an annual fee of 450$, this credit card is the best for rewards like airport lounge access.

Capital One Spark Miles for Business – With an annual fee of $0 for the first year and $59 for the rest, this credit card beats all the others when it comes to gaining travel credit. It’s time to choose the one that suits your unique business needs.

What Are The Benefits When Shopping For A New Credit Card?

Credit Card Benefits – Okay, asking yourself what benefits you should look out for when shopping for a new credit card? Here’s what you need to know first.  A credit card is, at a very basic level, a credit—a loan that is extended to you because of your credit rating, income and your ability to pay back the said amount with interest.  It is merely a loan that you pay back either in parts (minimum payments, part payments) or in full at the end of a period.

The long and short of it is that all credit cards are the same when assessed from this standpoint. And that is the truth. As a loan, they are all the same. The difference comes in from the way you use it, where you use it and for what you use it. For example, when one card might require that you pay the amount used in full at the end of the cycle, another may let you pay every cycle a certain degree that eventually adds up to the money you owe on the card.

creditcards-benefits

Cycles remain, by and large, the same, but the rates differ, the annual fees differ and certain charges differ; cash withdrawal fee, late fee et al. differ from bank to bank and from card issuer to card issuer. These differences aside, the type of card you pick will decide the value it offers to you. Benefits of a particular card, therefore, are purely subjective.

Also, Check:  Credit Card Eligibility Criteria

Logging on to a card issuer’s website, one can get to know all about the card’s features and special frills. It is the prudent course of action before you say yes to any card. That is one significant benefit from having everything you need to know online when shopping for a new credit card.

For instance on the Citibank Hong Kong credit card page about eight cards are shown upfront, with a description of what each card offers. A premier miles card is very different from a Citi Cash Back American Express card because one is aimed at benefiting a traveler with air miles while the other is aimed at giving more benefits for a shopper.

You can straight away pick one of the two. Cash back credit cards let you get a percentage of the spend credited back to you, and that is ideal for a shopper who saves up with each buy. But if you’re looking for some value as a traveler, your air miles program will be more useful to you than cash back.

The another benefit of going online is that comparison is also possible now. A quick compare option allows a potential card shopper, looking at cards online, to make a fundamental decision right away. Most card issuers take you through some fundamental questions before listing out all the cards in the range against some parameters like annual fee, spending periods, offers, etc.

Credit Card Benefits – The third benefit is that you can apply online. After you’ve satisfied yourself with the card’s basic features, advantages, and charges, you can from the comfort of your home make an application for the card with your relevant details. This, however, should not be construed as your eligibility for the card. Your eligibility for the card will only arrive after duly checking your important credit history and rating post the submission of information.

What Is The Eligibility To Apply For a Credit Card?

Hong Kong Credit Card – The eligibility to apply for a credit card from an established bank or a credit card company, simplistically put, is the credit worthiness of an applicant. This being fundamentally the only consideration for a credit card company or a bank to offer a credit card, is not, in truth, the only factor that decides the outcome of the application though. Pay, the nature of residency in Hong Kong, collateral, the relationship you have with your bank and its relationship with the card issuer, if the card issuer is not a bank, all come into play when applying for a credit card in Hong Kong.

creditcard-eligibility-hongkong

Here Is a Check List-( not a fool proof one though)

Income: Income, as a criterion, differs from card issuer to card issuer. For a non Hong Kong resident this again may differ. A foreigner staying in Hong Kong for sometime may become eligible on a certain income while his or her colleague with the same income may not qualify. Proof of income too varies. A pay stub may work for some banks while for others a full set of salary credits on statements is required.

Credit History: Income alone does not testify for a person’s proclivity to pay regularly, but a credit history is technical proof that someone who has taken a loan has paid back consistently or is paying back without fail month after month. The process of credit rating differs from bank to bank and from card issuer to issuer. By and large, while the rating system differs, missed payment, delayed payments, defaults etc invariably reflect poorly on your chances to get a credit card sanctioned.

Also, Check: Tips For Credit Cards Management

Residency status:  In Hong Kong there still are banks and credit card issuers that emphasize quite a bit on the residency status. Some do not ask expressly for a permanent residence status, some ask for it to be produced merely on paper and then there are others that simply don’t budge if the applicant is not a permanent resident. However, it is not uncommon for even the big established banks to settle for a Hong Kong ID card and simple proof of income that comes with a job contract.

This check list enumerates areas that one needs to consider while making an application but it is always best to reach out to a bank or card issuer to check for eligibility, with your personal details duly filled in. Since it happens a lot on case to case basis, the information you furnish in the application will be the deciding factor.

Credit Card Eligibility – Banks like Citi bank Hong Kong make the application process simpler by not only allowing one to compare cards but also apply online with relevant information. The information you furnish online will be the first eligibility check and doesn’t actually call for you to visit the bank in person. Online application is popular and is a faster way of knowing which card to go for and which card one is eligible for.

Tips for credit card management

Statistics published by the Hong Kong Monetary Authority show that there were slightly over 17.2 million credit cards in circulation at the end of Q3 2015. Such high numbers indicate that credit cards are a highly favored / sought-after financial product.

There are several reasons to this: credit cards provide you with an interest-free repayment period, you can avoid the hassles of carrying large amounts of cash, you can use them at both brick-and-mortar retailers and at online outlets, and, of course, the rewards associated with credit cards like air miles or cashback or discounts make them a very attractive option.

And, if used properly, credit cards can even help with your spending and financial planning. However, the excessive use of credit cards can easily lead to spending beyond your means, resulting into serious financial problems. The following tips will help you get started on becoming a smart credit card user:

creditcard

Understand your situation – Get yourself a credit card after you’ve taken into account your financial lifestyle, your money needs and your spending habits. Don’t plump for a credit card packed with short-term offers but which is not viable for you in the long term. For instance, if your major spends are on fuel, a petrol card would be great for you.

Learn about card features – Once you determine how you will use a credit card, it is important you understand all of a particular credit card product’s features including:

▪ Annual Percentage Rates (Interest rates applicable on a card)

▪ Annual, late, over-limit, cash withdrawal and other fees

▪ Credit limit

▪ Grace period before interest starts accruing

▪ Rewards, their applicability, conditions attached, redeeming rewards

Monitor usage – Always keep an eye on your credit utilization and make sure your spending does not go out of hand. Opt for transaction alert services on your credit card; you will get instantly notified of transactions happening on your card through email / SMS. Don’t throw away your card receipts. Verify them against your credit card statement and bring any discrepancies immediately to the notice of your card issuing bank.

Big purchases – Always think twice before making big purchases. Check whether you can actually afford such purchases given your cash flow. Sometimes issuers allow you to make payment for big purchases in monthly installments at low interest rates. Use such offers if you must make a “big ticket” purchase.

Don’t miss payments – This is a no-brainer. If keeping track of the dates is a problem, opt for automated payments. Missing payments means you will need to cough up late fees plus interest plus suffer damaged credit scores.

Don’t carry over large balances – Large balances attract large interest payments. Your trouble just keeps multiplying. Fast.

Don’t just make the minimum payment – You will land up in the situation we just outlined above.

Using multiple cards – [Kindly note: This is only for the advanced (read: disciplined) credit card user]. You’re a smart, disciplined credit card user, you settle your card bills in full, yet you feel that there is more to harvest. In that case, consider this: if you are maxing out on the rewards on your card but there is still some gas leftover in your high-spend categories then try going in for another same category-high rewards card, this time from another card issuer. You could possibly earn a little more from your unutilized high-category spends.

A credit card is a great tool to have; just make sure that you’ve planned its usage carefully to enjoy its benefits fully.