Think having credit cards leads to a pile of debt? Think again! Using a credit card has several advantages: they are a convenient and quick source of funds in case of an emergency, they are safer for online shopping, they help you track your purchases, they let you build a good credit history, and they offer some pretty sweet rewards and promos!
Having a credit card opens up a world of convenience and possibilities, as long as you remain a responsible shopper and stay on top of your finances! In the new normal, using a credit card is also a better alternative to pay for your necessities.
Whether you're just thinking of getting a credit card or you already own one, here are some useful tips on how you can maximize your plastic without falling into the credit card trap! Your relationship with your credit card should always be a healthy one.
Pay for purchases using your points
Did you know that you rack up points every time you purchase something with your credit card? Credit card providers tempt you to use your points for rewards, like dining or shopping. A more practical tip, however, is to use your accumulated points for existing bills.
Some banks and credit card issuers reward points with gift certificates, which allows for more flexibility. Even better if you can find gift certificates for groceries or other necessities.
Obtain special discounts through your card’s rewards program
Another reason to get your hands on a credit card? As a credit cardholder, you receive access to exclusive promos each month. Credit card providers offer all kinds of promotional discounts, such as scoring a free dish for every minimum receipt purchase at a restaurant or receiving a certain percentage as a discount! You may also find discounts for clothing, airline tickets, or even hotel bookings. These special promos are usually sent through email, text message, or printed on your monthly statement of account, so stay alert and be on the lookout.
Stand a chance to win instant freebies by keeping your credit card receipts
A certain amount of accumulated receipts can make you eligible for rewards! Sometimes, even a single-purchase receipt can win you an instant freebie, like receiving a free burger or meal from a fast-food chain. What a great and quick incentive for staying cashless!
Pay on time and pay in full.
Learning how to use a credit card entails taking on the responsibility to pay your bill on time and in full.
Credit cards offer convenience and prizes, but this niftiness comes with an interest rate if you don't pay on time. It can also cause all sorts of financial and legal trouble. Failing to stay on top of your payments can affect your credit standing, which can be disadvantageous should you need to approach the bank in the future.
Moreover, note that while credit cards are handy for emergencies, as much as possible, try not to spend money you don't have. A credit card is not an alternative source of income. It's just an alternative mode of payment. Having a good credit history can help you secure more immediate loans in the future.
Be mindful of the cut-off date.
Having a credit card will allow you to spend and pay later. Be wise and take note of your cut-off date, so you can happily enjoy weeks of extension on your credit card. When you time things right, your expenses will appear on the succeeding month's billing, giving you more time to come up with the funds to pay, especially if you just spent something huge.
Keep fewer cards with an extended credit limit, instead of signing up for multiple credit cards.
Having multiple credit cards may make you feel you have more sources of extra funds, but sticking to one or two credit cards helps lessen your confusion and even ensures that you pay on time. Limit yourself to just one or two credit cards. Just request to have the credit limits extended. This way, you won’t need to manage multiple cards.