If you were to ask anyone who uses a credit card what about some of the benefits to having one, they’d say things like it’s convenient, improves your credit when used responsibly, and so forth. However, what they probably wouldn’t say or think to consider is all the money that credit cards could save you. That’s right – you can actually save money by using plastic. Don’t believe it? Below are a few examples of how you can save money with your Visa, Mastercard, or another card.
You Get Cash Back
One of the most common ways to save money with a credit card is through a cashback promotion. This is when credit card users are awarded a percentage of their purchases back. Typically, between 1-5%, these cash back programs can run periodically or indefinitely allowing you to maximize your savings. While the percentage might seem small, for those who frequently use their cards, this cash back amount could add up to a decent amount by the end of the year – especially if you purchase big-ticket items that would result in a higher cash back amount.
Do you have other credit cards which have high interest rates? Well, depending on your credit history and the service provider you apply with, you may be able to transfer the balance from several existing credit cards to one card with a lower interest rate. There are sites like Creditsoup.com where you can compare the best balance transfer card. Some eligible applicants may even qualify for a zero percent interest rate offer for a while. Whether it’s six months or a year or even longer, not having to pay interest on your credit card charges can save you a lot of money and allow you to pay down that principal balance a lot faster.
Free Offers and Rewards
From free points towards airfare to free movie tickets and everything in between, credit card rewards can be an easy way for cardholders to save money. By keeping track of upcoming free and promotional offers, often cardholders can receive free merchandise and services just for using their card regularly. This can save you hundreds of dollars on activities and products you otherwise might not be able to afford.
Coverage for Car Rentals
If you travel often and rent cars, having a credit card can help you save money. Car rental insurance is a product often offered to those who rent a car as an added layer of protection. As many auto insurance companies may not cover the cost of damage while driving a rental car, purchasing insurance directly from the car rental company gives you more coverage. As beneficial as it can be, this can add as much as $30 a day to your rental car fees. However, if you have a credit card, they may provide you with insurance coverage free of charge. Many credit card companies offer insurance that would cover the costs of damage or theft to the rental car.
Boosts Your Credit
Though most know that using a credit card responsibly can boost their credit, many are unaware of how this can help them save money in the end. As you continue to be a responsible borrower with your credit card, this is reflected on your credit history for future use. The better your credit history, the less you’ll have to pay for interest on credit cards or loan offers in the future.
When used responsibly, credit cards are more than just modern-day convenience, they are tools that can be used to improve your credit and help you save money along the way. If you haven’t been able to see savings with your current credit card, contact your credit card company to find out about promotional offers for existing customers, or consider using a comparison site to review credit cards and the advantages they may have for you.
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