Some money saving ways of using credit cards

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Some money saving ways of using credit cards

Some money saving ways of using credit cards

The content is accurate at the time of publication and is subject to change.

Credit cards can lead some people to spending beyond their means. Plastic money has been used by a lot of brands to increase their sales through tie-ups, offers, promotions etc. which lead credit card holders to spend even when they are aware that their outstanding balances would be hard to repay. However, on the positive side of the story, there are many people who follow some strict rules of using the credit cards which help them save a lot of money and even get rewards and benefit from discounts.

Bill Payment and Grace period

If you pay back your outstanding bills within the bill payment cycle, you almost always tend to benefit. This is because of a simple calculation. When you purchase using a credit card anywhere during the month, you don't need to pay cash up front. You will get the bill a few days later and then there is some more time or grace period to pay the bill. If it is a major expense you can effectively save the interest on the money you spent, because you have to pay the cash sometimes almost a month later, which will be a very good saving for bigger expenditures. Therefore it is not a bad idea to make big credit card purchases just after the bill payment and use the money as part of a money saving scheme. Over a period that interest will accumulate to a substantial amount.

Cash back offers and Discounts

If you have a good credit rating you get cash back credit cards which you can use for your benefit. You would basically end up saving anywhere between 1-5% which is like an effective discount at groceries, malls or gas stations. If you save 5% on 1000 dollars, you are still saving 50 dollars every month which is quite substantial over a period of time.

Credit history

If you have a good credit history and you develop it by using the credit card for all your expenditures and then paying back the bill before due dates, you get a good credit history which helps you indirectly save money. This is because the interest rates on loans you get, house mortgages, car loans or future credit cards would all be less for those who have a very good credit history. In short you will indirectly save money for the future by just paying your bills on time.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!