Sunday, 12 February 2012

How to save money with your credit card, 16 tips

Your credit card is a wonderful plastic instrument of credit and at the same time you can save money with it. When the term saving related with money, remember the old slogan, little drops of water make a mighty ocean. While you save money with your credit card, you can count a good amount of money saved for a long while. Keep the following money saving tips which explains you how to save money while you use your credit card.

Ask for a credit card with free annual charges. Normally credit cards charge an annual fee according to the type of credit card. But if you bargain while apply for a credit card, they allow you a credit card with free annual charge. Only thing is that you may have to use the card for a certain limits. This is the first tip to save money with your credit card

Always use a partnership card. Second and important tips to save money with credit card are partnership card. There are partnership credit cards such an Indian oil credit card, first citizen credit card etc., which allows you to redeem the reward points while you purchase their products. You should keep in mind that while you select a partnership credit card, chooses partnership with your regular purchasing items. For example, if you have a car or motorbike you can ask for a partnership credit card with Indian oil or any other petroleum company which allow you to redeem your reward points for the purchase of oil. And such credit card gives more reward points for the purchase of their own product.

Pay credit card bill in time. One of the important tips to save money with credit card is pay credit card bill in time and it must be 3 to 4 days before the due date. The late payment or nonpayment attracts penalty and interest which makes a big hole in your wallet. And try to pay full amount of the bill, do not just pay the minimum amount. If you could not pay the full amount make it in EMI which attracts lower interest rate.

Pay credit card bill online. If you pay credit card bill online from your online net banking account the payment will be credited in time and can avoid loss of money due to the dishonoring of your check by any possible reason.

Keep away the credit card from your wallet.  Always keep the credit card in a safe place in your home. Do not use your wallet for keeping your credit card. Even if it is not convenient this is the next tip to save money with credit card. This can avoid the tendency of purchasing more and also minimize the chance to lose and misuse your credit card.

Apply the thirty day rule. Think before you make any unnecessary or luxury purchase with your credit card. The thirty day rule is that just wait for thirty days before making such unnecessary purchase or luxury purchase.  This time period is for taking a decision about the necessity of your purchase. If you feel that you still need such item, you can purchase it, unless you can save that money.

Do not blindly imitate others for purchase. This tip of save money with credit card is also valuable one. When you purchase with your credit card, never follow or imitate others. Purchase only if you need the item and this can reduce your credit card bill up to a certain extent.

Prepare a list for shopping. Make a list before shopping and stick around the list. Do not fall prey of fancy items displayed in the shop. Such fancy unnecessary items increase your credit card bill. You should Plan carefully before going for a shopping.

Do not accept an add on card. An add on card is a credit card with the same credit card number you have and it named your spouse of kids. If they are not strict in purchase, it adds up a big figure in your credit card bill.

Ask your credit card provider for a reduced rate. If you have balance in credit card to pay, just call the credit card provider and ask for a reduced rate of interest and tell them that you may go for another credit card provider. If you are a good customer they may accept your request and can save some money.

Examine your credit card bill regularly and carefully. This tip of save money with credit card is a must to follow. You have to check your credit card bill regularly for any mistake or unknown purchases or any interest or service charge. If you find anything unusual call the customer care and rectify it. If you sign up online in your credit card account, you can check these items conveniently.

Use bill pay for your regular payments. This is another important tip of save money with credit card. Your credit card company allows you to register your regular bills and insurance premiums with your credit card. It will automatically pay your bills and will give you an alert or take confirmation from you before and after payment as per your settings. Some bill pay accounts give you a certain percentage of cash back for such payments. You can save money while you pay bill in time and with the cash back.

Do not save your credit card number in your online account. For convenience you may save the credit card number in your online account and this may leads more purchase. Avoid such circumstances and if you already saved the number, remove it soon.

Avoid visiting trade fares and malls for entertainment. If you visit trade fare or business malls just for an entertainment, it may increase the chance or unnecessary purchase and a huge credit card bill.

Wait a few second before purchase online. While you making an online purchase, just wait ten to fifteen seconds and think that the items is necessary for you or not. If you could not find a satisfied answer remove it from cart.

Do not reach Rs. 200000 annual credit card bill. This tip does not save money with credit card but it avoids a lot of troubles. As per the income tax rule you must declare your annual credit card bill amount with your income tax return, if the total annual amount is Rs. 200000 or more. Avoid unnecessary troubles by reducing your annual credit card bills.

If you keep all the above mentioned tips to save money with your credit cards, you can save a good amount of money and can reduce your expenses a lot.

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