Payment apps are currently the first choice of many customers especially for the millennials while making purchases. But it has not diminished the importance of credit cards which is still one of the first choice for many while shopping.
While payment apps help you in saving money by offering deals from time to time. But even your credit card can help you in saving money only if you know how to use it.
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Here are some ways which can be quite beneficial to you:
Make use of your Reward points
Reward points are something you must be knowing if you are a credit card user. For those who do not know, reward points are earned while doing shopping using a credit card.
While each credit card issuer has its own reward programme, some of them allow to convert reward points into cash. So make the most of it and spend some time in studying the reward point structure of your card issuer.
Co-branded credit card
If you are frequently using certain services like travelling by air, shopping in supermarkets, etc. then co-branded credit cards can be a useful tool for saving some money. It can help you to earn some points which can be used to settle bills at the co-branded partner.
Such cards also come with additional benefits like access to airport lounges, additional discounts, and additional insurance.
Using Cashback offers
It is an alternative option provided by credit card issuers after reward points, and it is useful for those who have limited money to spend. Some of the cashback offers are focused on utility bills, while some are focused on certain enlisted partners like e-retailors.
Cashback is subjected to certain terms and conditions, For example: You must do a certain minimum transaction to avail cashback. So do check the terms and conditions of your credit card issuer before you start using it.
Building and using your credit score
A credit score represents your history of loan repayments, which can stand between 300 to 900. If you have a high score that means your history of repayment is good.
So pay your credit card bills on time, this will ensure that your credit score remains high. A high credit score attracts lenders, and you can negotiate for a loan with lower interest rates, thus reducing your expenditures.
Deals offered by e-commerce portals
If you have more than one credit card, then you can make good use of it while shopping on an online portal. Most of the online portals tie-up with credit card issuers. Thus if your credit card is tied up with certain online portals, you can be eligible for additional discounts and offers.
So, before transacting on the e-commerce platform, do check if there are such special deals available for your credit cards.