Looking for how to save money your credit card? Below, we explain best tips oon your credit card can save you money, so you don’t have to cut back on what you enjoy.
Credit card is a great asset that allows you to earn rewards on your expenses. According to CNBC, an average American credit card user earns over $2000 in rewards by using a credit card for their day-to-day expenses, like food, gas, groceries, and entertainment.
Yet, some complain that credit card companies are dangerous because of high interest rates. Below, we explain how to save money on your credit card, so you don’t have to cut back on what you enjoy.
5 Ways Your Credit Card Can Save You Money
You can leave your funds on your bank account by using a credit card. There are many ways you can use credit cards to your advantage. Let’s take a look at some of those.
Don’t carry a balance
You can save money on a credit card without ever paying interest. Use your credit card to get stuff you need and pay it off every month. As long as you pay the balance of it, you won’t pay interest.
Use 0 percent purchase APR for big purchases
What is a 0 APR mean? It means you don’t need to pay interest on new purchases and/or balance transfers for a certain period of time. The average period is 10 months. But credit cards give 15 to 18 months without interest.
This is great a great opportunity if you planning to buy new furniture, medical procedure etc.
Apply for a credit card with a sign-up bonus.
Some credit card companies offer sign-up bonus for their card. Make sure to pick the best sign-up bonus for you. To earn this sign-up bonus, you need to spend certain amount of money by using your card. After that, the bonus is all yours.
Redeem your cash for a gift card
Money can be a more versatile gift, but you can maximize your return if you redeem them for a gift card with a credit card issuer’s gift partner. For example, you could win a $25 gift card for $20.
Use your credit card issuer’s discount mall
It does require a little planning, but you can save money on food, groceries, movie tickets, vacations, flowers and more by purchasing through your card issuer’s discount store. Take a look at your card issuer’s website to see which retailers are offering discounts.