Credit cards are plastic money and if thought about it they are seen more as a tool for convenience rather than a money saving tool. Most people warn you about using credit cards and how you might get stuck in a debt cycle.
Whenever we think of getting a credit card, the first thing that comes to our mind is the interest and then the fees and other charges. Credit Cards have many advantages, which most of us are unaware of and these can be used for saving money immensely.
Here are a few ways you can save money using credit cards:
Conducting a thorough research
Finding the right credit card according to your requirements can be a tough task as you would first have to analyze your exact requirements and thus choose a card that perfectly matches your needs. For example, if you travel frequently then a travel credit card which offers you free travel insurance along with discounts on tickets and hotel stays would be the best-suited choice for you.
Look for cards with a sign-up bonus
To promote their credit cards companies offer welcome bonuses. The bonuses can be in the form of any discounts on hotels, flight tickets, restaurants or even gift vouchers. Usually, these are not offered throughout the year but are seasonal discounts that are offered to boost sales.Make use of these opportunities to apply for cards and get sign up bonuses.
Use the free Hotel, Travel and Dining Program with your card
Credit cards providers have tie-ups with various hotels, restaurants, airlines thus offering you free stays in hotels and provide you extensive discounts if you pay dining bills using their cards in specific restaurants. This is a great way you can save money using credit cards.
For example, with the Arab Bank Visa Signature Credit card, you get 2 free nights in more than 600 Starwood Properties. Another example can be that you get a complimentary drink at Costa Coffee using the Standard Chartered Visa Platinum Card.
Make use of the Loyalty Program
Most of the cards come with a membership of the free loyalty program offered by the banks. Make sure you choose your card wisely and understand all the loyalty program features. Credit cards have reward points program that comes under the loyalty program where you earn reward points for every 1 BHD you spend using the credit card. These points can be later redeemed for buying travel tickets etc.
For Example, using the Standard Chartered Platinum Visa Credit Card whenever you spend BHD 1 you earn 2 reward points.
Look for cards that Offer you Extended warranties And Purchase Protection
Appliances and electrical gadgets bought using the credit card can have extended warranties as some cards offer 6 months to 1-year extra warranty, they also provide you protection in case of theft and defective goods. This can save you loads of money in repair and maintenance of the gadgets and electric appliances.
For example Standard Chartered Visa Infinite Card offers you extended warranty and purchase protection if any device is bought using the card
No foreign Transaction Fees and Lounge Access
Credit cards that are specifically designed for travelers have special features like free airport transfer, free lounge access around the globe as well as no charges for transactions made outside Bahrain. These all may seem nominal charges but when seen in light a lounge access generally costs nearly BHD 27, thus the credit card helps you to save money on food and also provides you a comfortable place to sit while waiting for your flight.
Credit cards offer you more deals than while paying through cash
Credit cards offer you a large variety of deals which are not available when you pay using cash or any other means. These include discounts in leading restaurants, buy 1 get 1 movie ticket offers (offered by HSBC Visa Platinum Card). These offers tend to save a lot of money over a period of time which is not usually accounted as savings using credit cards.
Credit cards have made our lives easier by making our wallets lighter and its worldwide acceptance in numerous locations. It is essential to realize that all the problems associated with credit cards arise due to faulty payments, paying your credit card bills on time helps to keep credit in check also protect you against loss of money in interest.
One can save loads of money with credit cards if they use it responsibly and also by finding the right credit card that matches your lifestyle needs.