Saving Money with Your Credit Cards

When it comes to personal budgeting, we tend to try to think of ways that we can cut corners while cutting down on any frivolous expenses in our lives. We spend on a lot of unwanted things which we need to cut. Credit cards help you get good credit score if you use it responsibly.

If you think you cannot spend responsibly, then you need to avoid using credit card. When credit card is used responsibly, you can save a lot more on your spend.

When you use Credit Cards only for essential spend, that is when you get maximum return on spend with their rewards.

Can credit cards really help to save you money?

This is only going to work if you are the kind of person that pays all of your bills completely in full every single month. If you are accustomed to this, then there are two types of credit cards that are going to be able to save you money.

The first type of credit card capable of saving you money is the cash back credit card. These are credit cards that allow you to earn back cash rebates for every single dollar that you spend using your credit card. In other words, this is literally like you are earning a perpetual discount, however small, on everything that you end up buying on credit. If you pay your credit cards off every month, then this really pays off in the end.

A typical cash back rebate may be something like 1% back for every dollar that is spent on the card. There are better cash back opportunities such as the American Express Blue credit card that offers 5% cash back any time you buy gasoline, drug store items or gasoline purchases. Another type of cash back credit card is the American Express Costco credit card, which pays out 3% on restaurant and gasoline expenses as well as 2% rebates on any of your travel expenses. If you use these types of credit cards, then it would be feasible for you to save as much as hundreds of dollars in a single year.

You can also accumulate miles on your credit cards and redeem it for travel. I have got some fully free trips paid for by credit card miles. So, make sure to choose your credit card with care.

What is the best way for you to save money using cash back option credit cards?

1. Always make sure that you are using a card offering between 1% and 5% in cash back.

2. Combine your coupons, your clearance items and your store sales with these cash back cards in order to earn maximum discounts while shopping in the store.

3. When you are shopping online, make sure that you are looking for special discount codes and free shipping codes to maximize your savings even further.

4. If you have multiple cards, check which card gives the maximum discount before checking out

5. Make sure you come through affiliate sites to get cash back on top of your credit card rewards

Combining all of these tactics is going to help you save the most amount of money possible over a period of time, especially when you combine these tactics with the automatic option for cash back through these credit cards. The best thing that you'll find from these cash back credit cards is that they can save you money without requiring any effort from you. Even when buying items that are not on sale, you are still going to get a discount automatically.

Takeaway

Make sure you are aware of your choices of different credit cards as a consumer to maximize cashback for each spend category. But, make sure to not open a lot of new credit card account as it will drop your average age of accounts (AAOA) and eventually your credit score will drop.

Choosing credit cards wisely and using them responsibly can be a sure shot way to get the best ROI and also to get an excellent credit score