When we ask people why they use credit cards, no one would answer ‘to save money’, but most of them will think of annual fees, interest rate and debt, etc. before suggesting credit cards as plastic money that can save a lot of bucks especially when you shop online. Believe it or not, the responsible and wise use of credit cards can help you save money while shopping online during this worldwide lockdown due to the coronavirus pandemic. However, you need to learn rules and understand features that credit card providers offer to save and earn more money for things you love the most.
Below are some of the ways you can save money with credit cards without getting into debt when shopping online.
0% introductory rates
A few years ago, 0 % introductory rates were offered only balance transferred but now more and more banks and financial institutions are offering 0% introductory rates on purchases as well. A credit card that offers 0% interest rate for an introductory period is called an Interest free credit card. If you have to make a big purchase like a new car, home furniture, or vacation package, an interest free credit card can help you break up the transaction in multiple payments without paying interest. In this way, you can save a lot of bucks in terms of not paying interest rates at all.
Pay for everything with a cashback credit card
Cashback credit cards are one of the best ways to save and earn more money while you are shopping online. Such cards let you collect cash rewards on your card when you pay for anything purchased online or offline. Not only on each purchase, but you can also maximize the cash earning by spending your credit for a particular limit. Most of the credit card providers also offer 1 percent cashback to the card holder against the payment made throughout the year. It not only provides convenience while shopping online during the lockdown but also helps you save and earn more money that can be spent on other important things.
You can take your money-saving strategy to the next level by earning flier miles from your credit card. You can earn these free miles without spending money on air flights as most of the companies offer sign-up bonuses and other rewards whenever you sign up with a new credit card. Many online stores and eCommerce sites also offer sign up bonuses so you can have some extra money in your account even without spending bucks on purchases or placing orders.
Special Perks and Rewards
Reward credit cards are the best to help you save dollars. These credit cards usually come with annual fees and offer up to 6% cashback on what you buy from your favorite online stores. For instance, if you spend $5000 for a year, you can save $300 throughout the year. Though, you should choose a reward credit card that aligns with your spending habits and buying priorities. For example, if you drive a lot, you should choose a credit card that offers more rewards on gas and other fuels.
Use your credit card Provider’s discount mall
It may take a bit of planning but can help you save money on a lot of things like eating, groceries, clothes, flowers, and other day-to-day essentials. Take a thorough look at your credit card provider’s online discount mall and find out the retailers and sellers who offer discounts with that credit card. it could be a great opportunity to save money when you use your credit card often for day to day purchases.
Shop on retail cardholder discount days
Retail credit cards may come with higher interest rates and are not considered the plastic money you should keep in your wallet, but some of the credit card providers offer perks like special discount days that can help you save a lot of bucks while shopping online using a retail credit card. Before applying for a retail credit card, make sure to reach the reward program and find out if they offer special discount days. You can also contact the customer care representative to ask for the special rewards and discount day-s they are offering. Always sign up for a retail credit card that aligns your spending habits and buying priorities.