How to Use Credit Cards To Save Money
By [http://ezinearticles.com/?expert=Martin_Lukac]Martin Lukac
Nowadays, credit cards are not only a tool to pay bills, but they are also becoming a part of urban life. The growing consumerism is promoting and being promoted by the use of credit cards. Every single person, constituting the target consumers, is considering the utmost utility and availability of credit cards for the financial benefits associated.
However, credit cards not only offer you expanded possibilities to utilize your future capital, but it also brings with it certain risks and worries. Using credit cards is a matter of sensible decision and critical judgment. If anyhow you make mistake here, you would be dumped with huge amounts of payments, then may be loans, and then even bankruptcy. So before you start using your credit card, make sure that you know how to use credit cards to save money.
First and foremost, be sensible while choosing a credit card. If you need a credit card, it is always better to compare the interest rates, facilities and other perks that different credit cards are offering. Do not forget to enquire about the annual fees that the issuing organizations demand. It is not a good idea to have many credit cards. The risk of identity theft can arise with the number of cards you own.
While choosing a credit card, tally the offers of the issuing institutions with your need and personal financial condition. Go for the one that suits you best. Also enquire and scan if the billing process is based on the two-cycle mode or single-cycle mode. It is better to go for a single cycle billing mode, as it is easier to get rid from credit card debt soon.
There are a few credit cards that offer travel benefits like discounts on various travel services; choosing such a card can save you a lot of money. Insurance benefits are such another offer that can save you money on car accidents, or loosing luggage. Even at times they offer money back on accidental death or dismemberment insurance.
At times, the cards offered by Internet Service Providers can save you money on big purchases, as they pay your ISP subscription amount. There are some credit cards that offer bonus points on your every use of the card. This bonus point you can exchange with your purchases and make the purchase free of cost. This is a big help for saving money.
As you choose the most appropriate and money saving credit card, now the trick lies in using it sensibly.
- It is always judicious to restrain from buying unbridled. It is better not to buy anything, which you cannot pay in hard cash soon.
- Do not let the payment run over months. Be careful to pay off the full amount in time. Otherwise high interest rates can take away a lump sum from you.
- If you are not using a savings account, yet you can earn some interest on your spare cash by putting the monthly spending on your credit card.
- If anyhow, after so much prevention, you are with huge payment backlog with your credit card, then go for balance transfer with 0% cost and interest. It can save you a lot of money at a risky situation.
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