Shop well, shop judiciously via credit cards to save money

Last Updated : July 6, 2016, 8:57 a.m.

Just as everyone wishes to have the credit card because of the convenience it brings. You just need to take out the plastic money and shop for whatever you wish to. Not only the online shopping for clothes and other items, you can even use the same for payment of utility bills and insurance premiums. In addition, the intense competition among the banks have led to the instant approval for credit cards , giving a big impetus to your shopping desire. But, there is a need to be judicious while shopping via credit cards as negligence here can cost you dearly. Spending unnecessarily through credit cards can throw you into the debt trap, which will sink you more and more with each passing day. However, if you use the credit limit on the card judiciously, you could not only enjoy the convenience of the cashless instrument but also save the money. So, we have decided to give you some tips that can help you save the money while using the credit card.

Make effective and adequate research

Don’t get too influenced by the attractive credit card offers launched by the banks. Instead you go online to find out the fees, reward points and other benefits of various credit cards . Choose from the list that’s offering more reward points and less fees to increase your saving.

Use credit card to make recurring payments

It is always good to use credit card for recurring expenses such as utility bills and insurance premiums as you can get reward points or cashbacks on such payments. The combination of the reward points and cashbacks can enhance your monthly savings to a great extent. Also, if you set an automatic payment of the bills and premiums, you will always be able to make the payment of the same on time and thus avoid unwarranted penalty and charges.

Plan big purchases on credit card after saving in cash

Resist your temptation to purchase expensive items such as the laptop, HDTV or the latest smartphone via credit card till the time adequate savings are not there. Once you have the requisite savings, purchase such items from your credit card and transfer the buying amount to your credit card account to ensure the purchase remains interest-free and allow cashback or reward points to enhance the savings.

Accumulate reward points

Try to accumulate reward points by credit card purchase and redeem them at the right time and at the right place. The reward points can used to get the discount or waiver of airfare, dining at restaurants, etc. However, be wary of the false temptations on reward points created by the mailers of the credit card issuers urging you to purchase something that you may not require. Don’t fall prey to such tactics and redeem the reward points at the right place to save adequately.

Pay the entire outstanding dues

Make sure you do not splurge around and spend small amounts on your credit card so that you can pay the monthly bills without any problem. Make sure you pay the entire amount each month on or before the due date to escape the late payment charges. Avoid buying a thing on the credit card for which you may find it difficult to pay in cash when the final bill comes.

Avoid having too many credit cards

Don’t take too many credit cards just because the banks are offering you at low interest rate. Keeping a track of multiple credit cards , if used simultaneously, can be extremely difficult and mount the debt burden on you. Applying for too many credit cards can also lower your CIBIL score.

So, use your discretion while spending on the credit card and save the money you want. Resist your splurge temptation and make a perfect schedule of the payments to avoid late payment charges.