Tips to Use Credit Card Smartly to Save Money

Last Updated : June 27, 2016, 10:11 a.m.

Many of you will surely agree on the fact that credit cards come with plenty of features and advantages. This is the reason that nowadays many people are keenly interested to have credit cards. More to the point, many people think that owning credit card can actually lead towards more expenses. Once you have the credit card, then many times you end up spending more more as compared to cash.

But, this is not the reality! Yes, very few people are aware with the fact that if you are using credit cards, they can actually help you in saving a lot of money.  If you know how to use your credit card smartly, you can actually save a lot. Apart from offering you numerous benefits and unlimited features, credit cards allow you to save huge money, only if you are a smart spender.

So, if you are looking for some effective ways to save money while using your credit card, this article is for you. Yes, read the tips mentioned below and know how you can use your credit card smartly.

• The first and foremost thing that you need to consider is not to use your credit card for impulse buying. Take calculative decision and try to avoid rush-rush buying. Take your time to think and then use your card for any purchase.
• Try to avoid using your card beyond 60% of your monthly household expenses. For example-If your monthly income is Rs. 1000, and you use Rs. 800 as your monthly expenses, try to avoid using credit card for more than Rs. 480.
• Not to use your credit card to buy the expensive items. Yes, until and unless you don’t have a back-up plan to repay your amount, try to avoid heavy purchases.
• Multiple credit cards are big NO. Try to use only 1 or 2 credit cards only to avoid unnecessary expenses.
• Go for Add-on card, if your spouse or children use your card. With this supplementary card, you can assign one credit limit for your loved ones to use and will be able to collect maximum rewards and cash backs.
• Keep your credit card safe by not sharing the confidential details of your card with anyone. Through this way, you can avoid your card from being misused by anyone.
• Start comparing the different credit cards offered by different banks. Once you do the comparison, you would be able to know which bank is offering you more benefits in less amount.
• Try to negotiate with the bank and ask for latest offers and benefits on your card. Get in touch with the bank to know that latest offers and save money on your purchases.