Using Credit Cards To Save A Little Money
Credit cards  (Photo credit: Wikipedia)
There are several uses for credit cards and, as long as they are used properly, there won’t be any overwhelming debt as a result. However, before I get into the meat and potatoes of this article, I want to warn you that as with any tool, if credit cards are used improperly, they can cause destruction. Although, credit cards can be used to save money throughout the year, only those who have outstanding control of their finances should do this. With that said, here are a few different types of credit cards that you can use and, how to use them to save money….
Money Saving Credit Card Options
Cash Back Credit Cards – Using cash back credit cards, you will earn points with each purchase. Once you’ve earned enough points, you will be able to redeem them for cash back. This cash back is your savings!
Rewards Credit Cards – Just like cash back credit cards, there are several other offers out there that offer point based rewards programs. As you use the credit card, you will earn points that can be redeemed for just about anything from airfare to gift cards and products. The reward you earn will depend on the offer you choose!
Gas Station Credit Cards – Gas is one of the largest household expenses these days. As we know, the price per gallon goes up almost every month with an occasional dip in prices here and there. But, you may be able to save money on gas by using a credit card provided by the gas station. In many cases, you can save 10 to 20 cents per gallon!
Steps To Saving With Credit Cards While Avoiding Overwhelming DebtÂ
Step #1: Set A Monthly Spending Budget – Aside from monthly bills and savings, how much money do you usually spend each and every month? Now, cut that in half and, that is what you should set as your monthly spending budget for your credit card. This way, you will be sure to have the money to pay it off each and every month.
Step #2: Use Your Credit Card – The only way that you are going to earn points is if you use your credit card. Therefore, you will not be able to save money with credit cards if you don’t use them. Any time you can, use your card. That is, until you have spent up to your monthly spending limit.
Step #3: Pay Your Balance Off Monthly – If you carry a balance on your credit card from month to month, you will not be saving any money because you will be paying interest on the debts that you’ve accumulated! Therefore, the only way to save money using your credit cards is to pay your balance off each and every month, before you are charged interest!
Step #4: Redeem Your Rewards – Now is when the savings kicks in, it’s time to redeem your rewards. Once every 6 months to a year, call your lender. When you call, ask them how many rewards points you have earned. Use those points to get cash back or save money on other things that you would love to do or have!
Final Thoughts
Now, I’m sure you can see that it’s actually pretty easy to save money using credit cards. However, it’s important that you use credit cards properly and remember that the only way you will save is if you pay your balance off each and every month. If you already have credit card debt and don’t consider this to be a good way to save money for you, consider reading this article to learn how to save money on your credit card debts!
About The Author – Joshua Rodriguez
This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance writer. Joshua’s most recent personal finance series is available here! Join the discussion about this article, Joshua’s series or any personal finance topic of your choice on Google+.
Category: Credit Card
