Do you use credit card? So you have to know how to use while buy goods. Credit cards are fix loan to you with set of amount. You can buy anything with amount and above your salary limit. See uses of credit card advantages. Thus check How to use credit card for shopping. It might sound like fancy phrase. But it means keep an account of all your Credit Cards and using them. This includes keeping track of bill payment dates, paying dues on time etc.
5 Steps to save money with credit cards
You can avoid taking loan unless it need. But credit card through buying can help you to manage your finance. And if you pay in time there is no extra cost. Credit card payments allow you to repay amount within 45-50 days. This means you will get extra 15-20 days to clear your bills without paying interest.
Also, you may not be able to pay money in two months. So you can opt for EMI options where you can make refund over period of few months. There are some ways to help you to manage your finance. And you can optimize card.
Make your everyday costs
Most of us fail to calculate your monthly cost. But credit card will help you to keep track of every expense you make. You can analysis expenses you make through your month budget and reduce over use habit.
Payments can convert into EMI’s
Banks allow you to convert their outstanding amount into monthly EMI’s. As you know, all EMI payments carry certain rate of interest. This can be do to spread repayment and to reduce your month burden.
Thus, late payment interest charges lies around 1.3 on monthly basis. If you convert amount for 12 month EMI. You have to pay 12% or ever more 36% interest if you are not paid on time and not converted into EMI’s. You must pay full amount or into EMI’s to reduce your month bill amount. Otherwise you will fall on risk into debt trap.
Avail cash back offers and reward points
Before jump into you see ways to optimize your Credit Card portfolio. You need to find out your ‘type’. You need to understand your personality and analyze your needs. Then those who tend to spend first and think later. If you belong to this category, you need to think about Shopping & Rewards Cards. To handle on your expenses.
You get reward points depend on card type for every buy. Not only this in some periodic sales, you may get 10-15% discount or cash back. And it offers after few months of buying products through credit card.
It’s better to analyses market well and hunts down best deals. There are couples of factors you need to keep in mind though. If you want more rewards, you need to choose. Another major factor that you need to keep in mind is your spending habits.
But you want to make some savings in month without losing on your open expenses. So you can set your rewards points against movie tickets, online buy, going at dining places and so on. Also make sure that you are not over use your credit card for sake of earning reward points every month.
Get an auto debit facility
To remember dates to pay in month is difficult. So opt for an automatic payment facility through your credit card. It will be better option for you. And all your bills will get self execute and need to pay onetime credit card bill through your bank account. Also make sure that you keep enough money in your bank to clear your credit card bill in time before due date.
Opt for credit card limit low
You must aim to get low interest credit card. Also, you need not increase credit limit that you may find difficult to manage your salary. This will help you remain in your pocket and save you from becoming spendthrift.
As credit limit increase it can urge you to spend more. Such over spending may take you into debt trap. So, you must avoid such tempting offers made by bank. Thus it can compel you to increase your credit limit.
Finally, see how to make personal budget. But also see how to budget credit card payments. And check 7 safe steps to optimize your credit cards. Also check how to use credit card online. Thus for more details List uses of credit card.