For many, credit cards is only a method to make payment, while the savvy users are aware of how to maximize benefits and services from the various credit card offers. The types of facilities offered by credit cards are insurance, free travel, cash back, and other numerous services to help you save loads of money.
7 Important ways how you can save money using credit cards
- First, choose the best card such as the HSBC credit cards that suit your lifestyle. There are different types of HSBC credit cards and other cards offered by other companies. A fuel card is useful for those who travel in their car to office, cash back offers on credit cards are best for avid shoppers and a shopping card is suitable for people who live in a joint family and need bulk shopping. In a way, HSBC credit cards are favourable for saving lots of money and getting rewards using the cards.
- Another suitable way to save money is to avoid paying interest. Do not have too many credit cards, but only a limited number with an overall credit limit. This is because your overall credit limit should not overwhelm your monthly income, otherwise that would be a problem.
- Whether you have HSBC credit cards or other types of cards, you should avoid debit and cash transaction with the cards. Every time you go to a shop, it is better if you pay through credit cards instead of via cash or debit cards. Using credit cards offers you extra interest accumulated on your savings account balance while also guaranteeing rewards and benefits.
- It advisable to make payment of credit card bills at the end of billing cycle and leave it for the last few days. This can be a great method of keeping your credit utilisation limit minimum while using credit cards. If you postpone payment of bill on credit cards, you can earn additional interest on the savings account for the grace period. Remember, you need not worry about clearing cheques since payments can be done through mobile banking or net banking anytime.
- Credit cards offer you the scope of earning reward points. For every purchase that you make, you can get reward points. Later you can accumulate all the reward points and encash it against other products that you buy. Some of the best credit card options are HSBC credit cards, Standard Chartered Manhattan credit cards, ICICI Instant Platinum cards, SBI Simply Click Credit Cards, Citibank Premier miles Credit cards, etc.
- Try and increase credit payment cycle. The longer is the grace time for payment through credit card, the more you can actually delay the payment. This will help you to accrue more interest. It is better if you can negotiate with your bank and enhance the grace period as much as possible. It is better if you upgrade to a higher end card and see how the grace period increases by 10 days. As a result, the half-yearly interest credits will increase naturally.
- Also, you can save lots of money on credit cards since the card protects you from damages and all kinds of thefts. The best part is credit cards can offer price matching services. Remember, different companies have varying policies on their credit cards. Sometimes, it is possible that your credit card will track prices for you and offer you credit for the difference in price automatically.
Credit cards have more uses than you could have imagined. This article will help you focus on those areas on how to maximize benefits on credit cards and make the most of it.
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