Top 5 Ways to Save Money with Credit Cards
Credit Cards Can Actually Save You Money
All too often it seems that we look at credit cards as if they were evil villains lurking in our wallets waiting to bury us in treacherous depths of debt. Sometimes we have to take a moment to remember that credit cards are tools, not entities. It's not the credit cards themselves that are evil -- it's what people do with them that makes the difference between good and bad. There are indeed ways to make your credit cards work for you. Here are some pointers.
1. Don't Carry Debt
If you want your credit cards to save you money rather than cost you money, you need to pay them off in full each month. Any rewards gained from using your credit cards will be negated if you pay interest on them. This means you have to pay your balances in full each month.
2. You've Got to Keep Them Separated
You should have separate credit cards for emergencies and everyday spending. If you do run into an emergency and you won't be able to pay your balance in full at the end of the month, then use a credit card designated for that purpose. This should be a low-interest card that offers reasonable finance charges in lieu of rewards.
3. Know When To Use Them
If you pay your credit cards in full each month, interest won't be an issue and you'll be able to use your credit cards to benefit you. This is especially true if a store is holding a sale or your card is offering special incentive rebates.
Let's say you're shopping at your favorite department store and you are offered 10-percent off if you use your store card. If your purchase is $100, that's a $10 savings. That's $10 in your pocket for simply using your card. Just remember, you have to pay that $100 in full when the statement comes in.
4. Friends in High Places
When you develop a history of using your credit cards wisely, it's going to show on your credit report. This means you'll begin qualifying for more prestigious credit cards. Get these cards and enjoy the benefits they offer.
American Express, for instance, offers certain card holders numerous benefits such as travel planning and other concierge services. You might even be able to qualify for special travel discounts specifically for cardholders. See what benefits your credit cards offer and make sure you use them to the fullest.
Remember, just because you don't pay interest on your credit cards doesn't mean you should reap every single reward they have to offer.