Having a credit card is beneficial and convenient, especially when you travel or when you need to make big purchases. This year, your credit card is even more useful when it comes to shopping online and paying for vacations.
A credit card also has its drawbacks, if not used properly. You can incur huge debts because of impulse buying and credit card mismanagement. But did you know that you can save money with credit card and use it for budgeting this New Year? Here are some simple credit card saving tips to consider:
Pay on time and in full
This is the most important thing you need to do as a credit card holder. Not only will this improve your credit score, but it will also greatly help you save money on potential fees and interest charges. If you cannot cover the full amount, make sure to pay more than the minimum monthly payment due to lower the extra interest charge and get out of debt more quickly.
Monitor your spending
Using your credit card is so convenient that it’s very easy to get carried away with your spending especially during the holiday season. Save money by keeping track of your expenses and sticking to your budget. There are apps that you can download to help you stick to your budgeting plan.
Reduce your credit limit
A high credit card limit is not an excuse to overspend. Set a sensible credit limit to keep your expenses in check and ensure that you are capable of paying in full on a monthly basis. You can ask your credit card provider to reduce your credit card limit. It is also helpful to set your personal limit so once you’ve reached it, you cannot use your card for that specific month.
Review your credit card statement
Some people don’t bother checking their monthly statement, but this tip is important. You can save money by making sure that you don’t have charges from stores or companies that you’re not aware of, duplicate charges, and/or changes in direct debit amounts. If there are unusual transactions, contact your credit card provider as soon as possible so they can reverse them.
Having a credit card is useful, but use it properly. It is not a financial tool to make ends meet. Consider these tips on how to save money with credit card compare so you can lower your expenses and stick to your budgeting plan in the coming year.
Aside from these tips, do you know other ways to save money with a credit card? Share your ideas in the comments section below.