The credit card has been known as the common root of debt worldwide, as it is one of the more popular types of loan offered by banks. According to TIME, Americans continue to sink in debt due to credit card, where household arrears have jumped by 15% faster than income. However, there’s a way to pay less on your credit cards while using it more. In this post, we want to present effective tips on how you can cut the cost of your credit cards while continuing to enjoy its convenience.
Use points and rewards
Credit card companies lure people to sign up for their plans by offering them rewards and points systems that they can use as cash or discount to their favorite stores. Some even offer points, which can be converted to plane tickets when accumulated properly. It is one of the few reasons why people opt to get certain credit cards, but most of the time they also forget to leverage this sort of benefit. It’s best to utilize your rewards to get discounts when you shop or, if possible, convert points into cash as payment to your bill. It can save you a lot later on your bills while continuously using your credit cards to shop.
Leverage new payment systems
Most establishments have only started adopting the latest new payment systems such as contactless payment terminals and portable card machines. To encourage users to maximize their new technologies, most retailers offer discounts and freebies to those first few customers who utilize their new payment systems. Surprisingly, the most common type of credit card machines still used globally are those that are tethered to the counter, but providers like Worldpay are now offering a multitude of different portable card machines that can connect to Wi-Fi, accept contactless payments including Apple Pay, and receive payment from NFC chip, pin, and MagStripe. It could potentially save you plenty of cash if the shops you go to offer discounts to customers who use their new payment terminals.
Do not be a unreliable payer by skipping your due date. A renowned credit card aggregator site states it can cause negative effects to your credit score. It can affect your plans to get loans from banks in the future if you have issues in paying your credit card bills today. The best way is to schedule your monthly bill during the time you get your salary so you can budget your income accordingly. Most banks offer great rewards to those customers with great credit scores so always pay ahead to avoid additional fees.
At the end of the day, you can spend less using your credit card if you are wise enough in maximizing it. Take note that compared to cash, credit card incur additional fees and interest that may cost you more if not used wisely. Do you have any other tips you want to share? Leave us a comment below.