ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

5 Tricks to Stretch Your Savings with Credit Cards

Harness the benefits of your credit cards while safeguarding your financial well-being.
PUBLISHED FEB 20, 2024
Cover Image Source: Credit Cards | Unsplash | Photo by Stephen Phillips
Cover Image Source: Credit Cards | Unsplash | Photo by Stephen Phillips

Credit Card Management Made Easy

Representative Image | Pexels | Photo by Tima Miroshnichenko
Image Source: Representative Image | Pexels | Photo by Tima Miroshnichenko

Credit cards play an important role in modern financial management, providing convenience, security, and potential savings when used responsibly. Despite their benefits, many people fail to fully leverage the advantages they offer. From cashback incentives to exclusive discounts, credit cards can significantly enhance your savings strategy. Here are five insider tips to maximize the benefits of your credit cards:

1. Pay Your Bills on Time

Credit and debit cards | Getty Images | Photo by Matt Cardy
Image Source: Credit and debit cards | Getty Images | Photo by Matt Cardy

The cornerstone of responsible credit card usage is paying your bills on time. Late payments not only result in hefty fees but also accrue interest charges, compounding your debt over time. By making timely payments in full each month, you can avoid these additional expenses and maintain a healthy credit score. Moreover, some credit card issuers may increase your interest rate to a penalty APR if you miss payments repeatedly. This higher interest rate can significantly increase the cost of carrying a balance on your card.

2. Choose the Right Credit Card

Pexels | Pixabay
Image Source: Credit cards | Pexels | Photo by Pixabay

With countless credit card options available, it's important to select one that aligns with your spending habits and preferences. Whether you're a frequent traveler, a foodie, or a savvy shopper, there's a credit card designed to suit your needs. Look for cards that offer rewards, cashback, or discounts on categories you frequently spend on, such as groceries, dining, or fuel. For individuals looking to build or rebuild their credit history, choosing a credit card with features like low credit requirements, secured options, or credit-building tools can be beneficial. 

3. Take Advantage of Balance Transfer Offers

The lottery is a fun way to earn money unless addicted. Image Source: Burst|Photo by Shopify Partners
 Image Source: Burst | Photo by Shopify Partners

If you're struggling with high-interest balances on other credit cards, consider leveraging balance transfer offers to consolidate your debts and save on interest charges. Many credit card issuers provide introductory periods with low or 0% APR on balance transfers, allowing you to pay off your debts more efficiently. By transferring your balances to a card with a lower APR, you can reduce your overall interest expenses and expedite your journey toward financial freedom.

4. Opt for EMI Options

Image Source: Pexels | Photo by Mikhail Nilov
Image Source: Pexels | Photo by Mikhail Nilov

For significant purchases, consider opting for equated monthly installments (EMIs) offered by many credit card issuers. These EMI options typically come with lower interest rates and flexible repayment terms compared to traditional loans or store financing. By spreading out your payments over time, you can ease the strain on your finances and maintain better control over your budget. However, it's essential to calculate the total cost of the purchase, including interest, before opting for an EMI plan to ensure it aligns with your financial goals.

5. Manage Annual Fees and Interest Rates

Pexels
Image Source: Pexels | Photo by Pixabay

Effectively managing annual fees and interest rates involves consistent review and negotiation with credit card issuers, potentially resulting in substantial savings. Those with a strong payment history might qualify for reduced fees or interest rates through direct requests. Proactive engagement with credit card providers enables cardholders to minimize unnecessary expenses, thereby bolstering their savings. Furthermore, keep an eye out for credit card promotions that offer waived annual fees for the first year or bonus rewards that offset the annual fee's cost. Just be sure to reassess whether the card is worth keeping after the promotional period ends.

MORE ON MARKET REALIST
The legendary host has a history of theatre performances, and that seems to be one of his passions.
6 hours ago
The idea might have seemed weird at first but every single shark loved how it tasted.
7 hours ago
The shark seemed to have the time of his life and even threatened Kevin O'Leary with the flames.
9 hours ago
Jennings is loved by fans of the show ever since he became one of its most dominant contestants.
1 day ago
The founder didn't budge even an inch from the valuation that she found to be accurate.
1 day ago
The player later confessed that he went blank and gave the wrong answer.
1 day ago
She had no idea who the painter was and what it might be worth, so her shock was understandable.
1 day ago
She knew the answer long before the timer started ticking down and won a massive chunk of money.
1 day ago
The contestant made several errors while playing one of the show's most time-sensitive games.
2 days ago
Ari Siegel started 'History by Mail' in 2019 after witnessing a powerful historic document in the Library of Congress.
2 days ago
Her name isn't usually mentioned on the show for obvious reasons, so this was a rarity.
2 days ago
The car was an infamous piece of hip-hop history and could fetch big money at auctions.
2 days ago
The iconic action movie had a dialogue that had a reference to the show popular back then as well.
2 days ago
Cuban kept resisting a joint deal, but then all other sharks decided to give him a higher share.
2 days ago
The insider account contradicts a statement that Bialik had released regarding her exit.
2 days ago
Seacrest took the opportunity to congratulate the second-time 'honeymooners' with a risqué joke. 
3 days ago
The duo has expanded their business with more product lines since they gained exposure.
3 days ago
This information could help a lot of contestants do well on "The Price is Right" but there's a risk.
3 days ago
The contestant was doing it in her heels and Seacrest was at first surprised.
3 days ago
Jennings couldn't keep his thoughts in after listening to the contestant's story.
4 days ago