You shall be very much familiar with the credit card. It is said to be your final gear when you go shopping. The plastic can even be a great friend to a happy shopper. Considering the time of today, this plastic seems to be the least practical option out there. It is actually the most appropriate tool used for consumption when you are out of cash. It lures you to spend.
Is there anyway for your credit card to be handy for your saving endeavors?
Yes, actually there are methods that the plastic can be helpful. You can really save money with that credit card.
Zero% Balance Transfers
If your present credit card has higher interests, you can transfer your balance to one with a low-interest or no-interest at all. It can grant you a zero% interest for a certain period and then a lower regular rate later on. A 19% interest rate can be shifted to one with 16.1%. The 2.9% difference means a lot, particularly in the long run.
Lower Interest Rates
You should search for one with the lowest rate among others to further maximize having a credit card. This certainly spells savings. If you do not have a balance yet, it is great to look for a card without annual fees.
Take extra precautions, too, in assuming that the lowest interest rate is the great for you. Factor in your buying habits. You may be allured to the low rates, but the end result may not be desirable if combined with the annual fees and the like.
Reward points system and cash back programs are granted now which can save you money. Maintaining a low balance despite your regular buys will give you at most 5% off on purchases.
There are even cash discounts up to 5% when you use the credit card at certain gas stations, convenience stores and groceries. This can be automatically applied to your bill, the more you can feel the savings you are generating.
Maximizing the Experience
To obtain the rewards, you must avoid the drawbacks. A prudent person will surely look for the best deals and grab it right away but with some caution.
Thus it is needed that you read the details. Check the fees that may be charged and the penalty rates in case of delaying. This may be the downside of the deal granted to you. For example, be cautious of cash advance features of credit cards. Some of them can be very expensive and can come with numerous fees and higher rates.
Be wary! Spending cannot be avoided at times. Just remember your goal, getting a good deal to save.