Can Credit Card Help You Save Money – Finally Answered
Hardly do people ever think that credit cards save money but if smartly used, they can significantly save your cash.
People who irresponsibly use credit cards are the ones who saved money with it isn’t an option.
If you’re responsible, however, spending within your means, and paying your bill in full and on time, using a credit card can help you save real money.
Here are a few genius ways you can use your credit card to help you save on cash.
Just as the name suggests, these help you get your cashback. Well, not all of it, but partly thus saving you cash.
Cashback credit cards let you accumulate cash rewards on your credit card. If you can use your credit card to pay for pretty much everything, and not just those purchases that earn the most rewards, you can max out your cash earnings.
For example, if you spend around $3,000 each month on bills and other expenses, you can earn $360 a year on a card that pays just 1 percent in rewards.
When choosing a rewards card, pick one that aligns with your spending habits and purchasing priorities. If you drive a lot, make sure you’re getting rewards on gas, for instance.
Raise Credit Score
A good credit score is important in today’s world as you get access to some of the best loans and credit facilities.
By paying your credit card bill on time, you raise your credit score and your eligibility for the best credit cards.
Credit cards can be a good first step to an excellent score, even if you need to start with secured credit cards first.
Use a travel rewards credit card to earn miles or points that you can redeem for a free flight or a free hotel stay.
You can use the free flight for an annual vacation, holiday travel, or weekend getaway.
When it comes to travel booked with a credit card, some cards offer have protections that kick in if you lose your luggage or need to cancel your trip.
Cash Is Insecure
Carrying cash around is insecure for many reasons. For starters, if the cash gets lost, there is no way of claiming it back.
If your credit card gets lost or stolen, though, you can report it to your issuer and get a replacement. You can also get protection for unauthorized charges.
Withdrawal fees for cash tend to be high as well thus making you spend more money than you probably intended. If you want to withdraw cash and can’t find your bank’s ATM, you’ll often pay $3 or more in fees.
It is also quite hectic having to withdraw money and convert currency when traveling as it comes at an extra cost.
Also, in instances where you bought something online and found out it was defective or broken, you stand a higher chance of getting a refund if you paid with a credit card as opposed to cash.
Maybe the least-known credit card benefit is price protection. While some stores will refund the difference if your purchase goes on sale after you buy, credit cards may do the same.
Discover will refund the difference up to $500 if you find a better price within 90 days. MasterCard offers a similar benefit, capped at 60 days.
In both cases, you just need to provide an ad proving the better price and submit the claim within the specified time limit of the price change.
Just as some stores refund you money when the price of an item you ought gets cut or marked down, you have this possibility with credit cards.
Your credit card may refund you the price difference with price protection benefits.