There are many blogs out there, which will offer you tips about the dangers, risk and the penalties for debts, but they will remain silent on how you can save money by paying with your credit card.
The truth is that the debt you’ll incur will depend on how you use your credit card.
The bad news is that there’s high probability that you can incur a lot of debt, which will ultimately ruin your credit score.
The good news though is that you can learn and follow the rules, build your credit score and generate more money.
And the truth is that you can do that without incurring any debt. Just make sure you follow all the rules, which include charging only what you can pay and making your payments in time every month.
Very fast, let’s look at the five ways you can save money by making payments with your credit card:
There are tons of credit cards that offer sign-up bonuses out there, but you can only know them if you do some research.
With these types of credit cards, you can get a number of bonuses. From cash back to accommodation in a hotel for free.
You don’t need thousands of dollars on your credit card to obtain the bonuses. Instead, you just need to spend a certain amount on your credit card.
Maybe you don’t feel like you need cash for a reward. That’s normal. You still have an option to choose from. Yes, you can opt to redeem your cash for a gift card. It’s your prerequisite. For instance, you can choose to redeem your $20 for a gift card of your choice.
By using your car rental agency’s rental cover, you’ll be increasing your rental with more than $20 every day.
That’s $140 if you do that for a whole week. But here is the good news; Most credit card companies will provide you with car rental insurance, but that’s only if you decline your car rental company cover.
The advantage of cash back credit cards is that you can save all your cash rewards on your credit card.
The trick is; if you intend to purchase anything, it’s better to use your credit card. But that doesn’t mean you should only pay for items that you’re sure will give you the most rewards.
For instance, if you have spent $5000 every month on purchases, payment of bills etc, you can generate up to $600 every year on your credit card if it pays one percent.
While you could have heard people saying that retail credit cards aren’t the best to have, but those are talks with no justification.
The truth is that retail credit cards could offer you reward programs giving you special discounts, which is a rare opportunity.
What you need to do is to carefully go through details of the rewards program. In case you don’t understand anything, call your card company to explain more.
Sinha concludes that, “Prudent use of credit card is an enabler for most us. It helps you transact and live a better lifestyle. But misuse of the same can land you in a debt trap.”