5 Tips To Getting The Most Benefits Out Of Credit Cards

There are those who think that credit cards are an expensive way to buy goods because interest rates are high. It is true that rates are high, but the reality is that people can benefit from interest-free credit if they use their cards wisely, and that makes using them worthwhile. Here are a few tips on how you can save money using credit cards:

1. Clear your debt in full each month

Contrary to popular belief, interest is not applied at the time of purchase when you use credit cards. Interest is only added if you have a balance outstanding after each payment period. When the interest is applied, it is backdated to the date of purchase. By making sure you have a zero balance each month, you get your credit for free. You should set up automated payments to ensure you do not inadvertently carry a balance.

2. Avoid making cash withdrawals

Most credit cards will allow you to use ATMs to get cash, but you should never use them for this purpose. This is because you will always have to pay interest on cash withdrawals, regardless of whether you clear your balance at the next payment date. Always make sure you have a card from your bank that lets you withdraw your money without any charge.

3. Keep an eye on how much you spend 

Even people who are astute enough to set up automated payments will end up with a balance if there is not enough money in their bank accounts to pay the credit card balance. The most common reason for this is that the card holder has spent more money than they realized. This is an easy mistake to make, and you need to guard against it.

When you buy goods with cash, you cannot overspend, since you are limited by the amount of cash you have on hand. Your spending on your credit card will also have a monthly limit, but that limit may be higher than the amount of money you have in your bank account. Your monthly spending should be governed by your available cash resources rather than by your credit card limit.

Keep track of your balance by taking note of each transaction and of your total expenditure in the current period. It is easy to do this by carrying an index card on which you write your transactions.

4. Be on the lookout for credit card deals

People tend to stick with the same credit card company when they are happy with the service they get. If they are diligent and pay off their balances each month, the fact that they pay no interest means they believe they have no incentive to switch to a different card.

However, credit card companies will often have special deals to attract new customers. These deals are rarely offered to existing customers. One of the most common deals offered is a refund of a percentage of what new customers spend using the card, perhaps 1 percent of their total expenditure, for example. These offers are often applicable for a fixed period, such as six or 12 months. This can result in significant savings for people who use their credit cards a lot, so it pays to look out for such opportunities.

5. Limit the number of credit cards you use

The more cards you have, the harder it is to keep track of your spending. Furthermore, you may be tempted to incur more debt than you should, simply because the line of credit is available. It is easier to discipline yourself when you have only a few cards to manage.

Another good reason for keeping fewer cards is the possibility that your credit score will be reduced if you have too many of them. This could make it difficult to obtain other forms of credit, or to switch to a different credit card.

Credit cards can be one of the most cost-effective ways of borrowing. It does take time and effort to make sure you manage your accounts properly, but that effort saves you money.

33 thoughts on “5 Tips To Getting The Most Benefits Out Of Credit Cards

  1. blank David millinder says:

    Applying for your credit card

    1. blank Nancy Taylor says:

      Applying for a credit card

  2. blank Donald ferry says:

    I would like your credit card


  4. I’d very much like to have a small credit line,,poor credit at this time however if s one would just giv me a second chance to start over,,I mo I’ll do right by them as well as other Bill’s, ivd leaves in my apt 7yrs now after rent and electric I hav 548 dollars left..plz I need s one to help me start to rebuild..ty

  5. blank Peggy Roberts says:

    I would like this credit Card.

    1. blank Errick Shambley says:

      I will like this credit card

  6. I would like your credit card

  7. At
    I would like your credit card

  8. blank Bob Burns says:

    Need to build my credit back up

  9. blank Susan coley says:

    I like to get a credit card

  10. blank Marty Keener says:

    I would like to receive this card

  11. blank Jane wiensch says:

    I could really use this .. a fresh start on building my credit

  12. blank Paula Shaver says:

    I would love one just to build credit even higher

  13. blank Angela Worley says:

    Need to build my credit

  14. blank Ruel Mariano says:

    I want this card

  15. blank Jentri Hafen says:

    Could definitely use a big helper about r.n!!!!

  16. blank Edgar Sanders says:

    I need to build my credit up good

  17. blank Andrew James says:

    Need to rebuild credit to buy a house

  18. blank Melissa Orr says:

    Would like a card

  19. blank Jeannettea Coffman says:

    Would like a credit card.

  20. I would like to have this credit card so I can build up my credit and have money in my pocket. Struggling now.

  21. blank Katrina Edwards says:

    I needed to pay my bills

  22. blank Christie Corbett says:

    I want this card

  23. blank Karen E Jeffers says:

    I want this card.

  24. I would like to apply for your company’s credit card with the $750 non-secured limit, just as it was posted in your advertisement on Facebook.

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