Nowadays digital wallets and plastic money are very useful and important for everyone.
With the help of credit cards, you can buy anything without any hesitation.
Every time you will read about the warnings against credit cards.
As the risk of debt, high interest & penalty, bad impact on credit score, too much spending etc.
But do you know you can save money with credit cards?
Credit Cards can help you to save up to 10% to 20% of your total monthly spending.
It means you can save up to 2000/- INR if you spend 20000/- INR monthly with your card.
Easy Tips To Save Money With Credit Cards
Pay Your Bills With Credit Cards:
There are many credit cards available that offer 5% to 20% cashback on bill payments.
Every month you can save hundreds of bucks by paying with your plastic money.
You will also earn some reward points with each spend.
Paying your bills through credit cards will not only help you to save your cash but also will reduce your billing amount.
Credit cards like CITI Bank Cash Back and Standard Chartered Super Value Titanium give you 5% cashback on utility bills.
Uses Your Rewards To Pay Your Bills:
Some special rewards credit cards give 4 to 10 reward points for each hundred INR spent.
You can earn hundreds of reward points every month by using a credit card.
On many credit cards, you can also redeem your reward points in cash payments. Also, you can adjust them to your existing monthly card bill.
The cash value for reward points can be different according to the bank and card.
Generally, the bank offers 0.20 INR to 0.50 INR for each reward point. You can get a value back of approx 20 INR to 50 INR for every 100 reward points.
You can earn 10 Reward Points on each 100 INR spending with CITI Bank Rewards Card And SBI Simply Click Credit Cards.
Compare Cards Before Applying:
Yes, comparing cards before applying can help you to save a lot. Credit cards from multiple banks in the same category have different benefits.
Many cards offer welcome rewards or joining bonuses for cardholders.
The value of the welcome reward can be 500/- INR to 10000/- INR. So you can get a huge benefit if you choose the right card.
I personally receive a benefit of worth 5000/- INR from CITI Bank.
Later I redeem that voucher on my monthly bill and saved a big amount. Always look for the card which can give you the relevant benefits.
Find Deals To Save More With Credit Cards:
Shopping and E-commerce websites offer 10% to 70% discounts on purchases done by any credit card. You should always grab such deals.
These types of deals can help you to save a handsome amount on your home shopping.
Sites like Amazon, eBay, and Flipkart run big saving deals throughout the year.
And you can take advantage of them. Axis Bank, CITI Bank, and HDFC Bank offer an additional 10% extra cashback on online purchases.
In the same way, you can find Travel deals with Clear Trip, Make My Trip, Booking.Com, and Hotels.com. And also can save more than 500/- INR per month on entertainment at the Book My Show website.
#7 Ideas To Make Money While Travelling.
Buy Products On EMI
Through your credit card, you can buy a product with 0% finance charges.
This means you don’t need to pay any extra interest on EMI.
Save on Fuel & Travel.
You can enjoy free flight tickets and hotel bookings with your travel credit cards.
Many travel credit cards offer a huge milestone or travel vouchers as a joining gift.
These vouchers can be easily redeemed with any airline or Hotel which has a tie-up with the bank.
Pay More Than Minimum Of Your Credit Card Bills:
There is no benefit to credit cards if you are not repaying the amount on time.
Because interest and penalty charges are quite high on credit cards.
So if you will not pay the billing amount bank will ask for the extra charges.
It means your planning of savings through credit cards will become zero.
Always try to pay your billing amount on time. Or in case of any lack of cash, you should pay at least more than the minimum amount of your total bill.
This practice will help you to save your credit score and will keep you away from extra charges and penalties charged by any bank.
Don’t Own Too Many Credit Cards:
Using too many cards is not a good decision as this practice will make you confused.
If you use only one card for your all spending then there is more chance to earn maximum benefits.
For maintaining a good credit score, low liabilities, and eligibility for future financial requirements keeping only two cards will be a good decision.
Very informative article. It is vital to know the do’s and dont’s of credit card. You can have more details on creditsathi.com