Do you want to know the ways your credit card can help you save or earn money? I believe you do. So all you need to do is read this article to learn everything you need to know about earning money. So, without wasting much time, you should just read below and then grab the ways or methods in which your credit card can help you get or save money.
Ways Your Credit Card Can Help You Save or Earn Money
If you want to know how your credit card can help you save money, then you should read the following:
Transfer Balances to Reduce Interest
If you are currently carrying a balance on a credit card with a high-interest rate, you might then be able to save hundreds of dollars by simply transferring that balance to a credit card with a lower interest rate.
Taking advantage of a 0% APR balance transfer offer will simply give you time to pay off your balance without even accumulating interest. For instance, you can even save almost $400 by simply moving a $3,000 balance at 17% to a credit card with a 0% APR for 12 months.
Just be sure that you can pay enough each month to bring your balance back down to zero within the introductory period. Otherwise, you will simply end up losing money by still paying significant interest.
Use the 0% Purchase APR
Many 0% introductory rates are offered only with balance transfers. However, some of the credit cards simply offer 0% introductory APR on purchases as well. This means that during the offer period, any purchases that you simply make are also subject to 0% interest.
If you then have a big-ticket item to purchase—new furniture, a medical procedure, or a vacation—using a credit card with a 0% APR will then allow or let you break up the purchase into multiple payments without simply having to pay interest.
Pay With a Cashback Credit Card
Cashback credit cards allow you to accumulate cash rewards on your credit card. If you can use your credit card to pay for most of your expenses, not just those purchases that earn the most rewards, you can even max out your cash earnings.
For instance, if you simply spend around $3,000 each month on bills and some other expenses, you can then earn $360 a year on a card that pays just 1% in rewards.
The caveat here is to simply make sure you are able to pay off your card balance at the end of each month. Otherwise, the interest you are then charged will quickly outstrip any cashback that you earn.
Skip the Car Rental Insurance
Using the car rental agency’s rental coverage can even increase the price of your rental every day. However, depending on the credit card you use, that extra insurance might then be unnecessary.
Most major credit cards also provide car rental insurance as long as you simply decline the coverage offered by the car rental company and even then pay for your rental with your credit card. This can then save you tens or hundreds of dollars every time you rent a car.
Cashback can be redeemed for a gift card
Many credit cards partner with retailers to then offer gift cards with bonuses. You will then be able to maximise your rewards by simply redeeming your cashback for one of these gift cards.
For example, you might even be able to redeem $20 in cash rewards for a $25 gift card. If you choose retailers that you already shop with, then you are getting $5 for free.
Use the Discount Mall
Many credit card companies have a “discount mall,” or a set of national retailers that they simply partner with to offer regular discounts to cardholders.
It takes a bit of planning ahead, but you can then be able to save money on dining, movie tickets, flowers, and even more by making the purchase through your credit card issuer’s discount mall. You can also usually find a list of these stores, along with how much you can then save, on your credit card company’s website.
Earn free airline tickets or hotel stays
Travel rewards credit cards can even allow you to earn miles or points that you can then redeem for a free flight or a free hotel stay. You can even use the free flight for an annual vacation, holiday travel, or weekend getaway.
Even if you do not have a travel rewards card, your credit card’s discount mall might offer deals with certain car rental agencies or hotels. Always check there before making any travel plans.
Shop on Retail Cardholder Discount Days
If retail credit cards are the only ones in your wallet, you might be losing money because of high-interest rates and also limited use. However, if you only use retail cards occasionally, you can then take advantage of their rewards programs.
These cards often offer perks like special discount days for cardholders. Read through your rewards programme or simply call your card issuer to find out if your retail credit card offers special cardholder discount days. And also, remember to only sign up for retail cards at stores where you already frequently shop.
Look for a Sign-Up Bonus
Do not open a credit card just for the sake of it, or you could end up damaging your credit. However, if you are already planning to open a new card, you should look for one with a sign-up bonus.
Bonuses range from cashback to free hotel stays and also points that you can simply use for airline tickets. Earning the spending bonus can usually require you to spend a certain amount on the credit card within the first few months of having the credit card.
If you can then meet that requirement and also pay off your balance, you can earn the bonus without also paying extra in interest.
Advantages of Extended Warranty
Purchasing an extended warranty on electronics can even help you to avoid expensive repairs or replacements. However, these protection plans are often pricey.
Some credit cards automatically offer an extended warranty on electronics purchases at no extra cost. Check your credit card’s documents before you shop to learn whether they simply offer this coverage and also what you have to do to take advantage of the benefit.
Take Advantage of Price Adjustments
Whenever you shop, you risk purchasing an item and then finding that it’s marked down to a lower price a few days later. However, credit cards with price protection benefits might then refund you the price difference.
The ease of getting the benefit depends on your credit card. Check your policy for how you can then apply for a refund and also how long you have to make a claim.
Pay no foreign transaction fees
Most credit cards simply charge a foreign transaction fee, usually 3% of the transaction amount, on purchases that you make in other currencies. If you then travel internationally, these fees can add up quickly.
Some cards, however, waive the foreign transaction fee. If you travel out of the country frequently, you can even use a card with this feature for significant savings.
Don’t Carry a Balance
None of the benefits of the card will even be worth it if you carry a balance and also pay finance charges. Pay your balance in full, on time, each month. Otherwise, the interest and even late fees you end up paying might then cancel out any rewards or savings you might earn.
Which Credit Card Has The Best Rewards?
Determining the best rewards card for you comes down to the types of spending you tend to do most and also what kind of credit card rewards you prefer. Some cards, like the Chase Sapphire Preferred, are ideal for general spending to earn more cash back. Others, like the Bank of America Travel Rewards Card, are best suited for those who travel frequently.
How Do You Maximize Credit Card Rewards?
To get the most out of your credit card rewards, it can even be helpful to have a few different types of rewards cards. Try combining a good travel rewards card with an all-around cash-back card and also one with special rewards categories that fit your spending habits.
How Do You Redeem Credit Card Rewards?
Each of the rewards cards has its own set of options for redeeming rewards. You might then be able to have cash-back rewards direct-deposited into your bank account or sent via paper check. Some cards then allow you to redeem your rewards for a credit toward your balance. In some cases, you might even be able to spend the rewards directly with various online vendors. Review your rewards card’s terms of service for more information about the redemption options.
How Can a Credit Card Help You? – Ways Your Credit Card Can Help You Save or Earn Money
Credit cards are even safer to carry than cash and also offer stronger fraud protection than debit. You can then earn significant rewards without changing your spending habits. It’s easier to track your spending. Responsible credit card use is one of the easiest and even fastest ways to build credit.