Can you save money using credit cards?
Yes, you can save money with credit cards, but you have to have the discipline to follow some ground rules. Saving money using credit cards is possible. Many people do it every year. If you follow these rules, you will see the savings add up. Not only will you save money, but you can earn money by using credit cards.
Always Pay Your Entire Credit Card Bill Each Month and Avoid All Possible Credit Card Fees
Every month you need to pay your credit card bill off entirely. It makes a lot of sense if you think about it. How can you begin to save money if you are paying interest fees? Worse yet if you are late with payments or go over your credit limit, the credit card company will charge you late payment and over the limit fees. It is important to read all the terms and conditions of your credit card. This way you will not be shocked to receive surprise fees on your credit card statement.
Find a Credit Card With No Annual Fee
There are many credit cards available today with no annual fee. You need to have between fair and good credit to qualify. If you have poor to fair credit or no credit at all, you will not be able to use this credit card money saving strategy. It is important to understand that even though you can not employ this technique now, you should have at least one credit card to build good credit. In time your credit will improve, and you will be able to get a new credit card without an annual fee and to employ this technique.
Get a Reward Credit Card
This is where you start to save money and earn money. After following the first two rules, you have not paid the credit card company any money in either fees or interest. At this point, you are even. You haven’t paid money to the credit card company, and you haven’t received money either. Now you need to apply for a reward credit card. The best type of credit card to apply for is a cash back credit card.
Let us say that you applied and got approved for a cash back credit card. You will now want to make all purchases that you know you will be able to pay off each month with this credit card. As you make charges, you will start to earn cash back bonus rewards. Making on-time payments is important. You will not only want to pay on time to avoid late fees; if you miss payments too many times, you could lose the reward points earned.
Many cash back credit cards offer bonus rewards on some purchases. Typically a good cash back credit card offers a 1% cash back bonus on all purchases. A great cash back credit card will offer special cash back bonus as much as 5% cash back. These cash back rewards are typically good for one category. An example would be for all gas purchases. If you are someone who drives more than two hours a day, then this is a great cash back credit card for you. You will be able to earn reward points on your credit card fast.
Many credit cards can save you money by offering cardholders special deals. These deals for card holders can be online deals or coupons that are sent to you in the mail. The credit card companies often form special relationships with companies to offer great credit card deals to their customers. Each credit card company is different. Often you don’t learn about these offers until you become a card holding member. One way to learn about credit cards with the best cash back rewards and coupon offers is to ask a friend or relative. Often people you know are the best resource to learn about the pros and cons of any credit card.
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