People in our country have no hesitation in using credit cards. Many people avoid using credit cards. Many think so Credit card When used, the cost increases, interest has to be paid etc. But using a credit card can actually reduce your costs; At the very least, it can save you a lot of money. Let’s take a look at some effective credit card cost reduction strategies.
Proper use of offers
The best way to reduce the cost of credit cards is to make the best use of the best credit card offers. It may seem that using these offers is more costly. But such an idea is not correct. Discounts or cashbacks are available on credit card use for various payments or purchases in daily life.
Many credit cards transact a certain amount / POS per year, so the annual fee is waived, so you don’t have to pay the annual card fee.
Many shops have special discounts for credit cards. Reward points are available at various grocery and regular shops using credit cards with which you can avail various discounts. This point can even be redeemed to pay the annual card fee.
Different credit cards offer EMI at 0% interest. If you use the offer of those cards, you will be saved from having to spend a lot of money at one time, and you will be able to maintain your lifestyle by paying installments slowly.
Keep the autodebit feature on
Turn on the autodebit feature to avoid any unwanted penalties or interest using credit cards. You can turn on the card’s autodebit feature with your bank account to pay your credit card bills. As a result, at the end of the month, your card bill will be automatically deducted from the bank account.
Do not forget to pay your card bill and avoid fines and interest. Many times credit card bills are not paid on time due to busyness or not remembering, which leads to multiplication of fines. Again many times you have to pay extra interest for not paying the EMI (installment) on time.
To avoid such unwanted extra interest or penalty, it is very convenient to keep the credit card’s autodebit feature with a bank account. This way you can avoid unwanted expenses.
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Not taking supplementary card
Many credit card service banks will want to give you a supplementary card. That is, they will want to give a card to your relative or loved one whose bill you have to pay. This supplementary card adds an extra charge to your credit card. Avoiding these supplementary cards will save you from unnecessary card fees and SMS fees etc.
If your relatives or loved ones need a credit card, it is best to get a separate card in their own name. And if you have to pay the bill, then you have to let them use your card! What is the need to increase the cost of credit card with unnecessary supplementary card! But yes, you can get a supplementary card if you don’t mind the cost.
Disable additional card features
You can reduce the cost of using a credit card by turning off additional card features if you wish. For example, the cost of using a credit card is greatly reduced if insurance is discontinued. Since some credit card insurers charge a percentage per month on your credit card bill.
If you do not want to take insurance or if you do not need to stop, it will save the insurance installment money. In this way it is possible to reduce the cost of using a credit card by making proper use of a small feature.
Don’t run after rewards
Credit card usage increases the cost of using credit cards because of the pursuit of reward points. It is better not to fall into the trap of this reward point of showing greed for extra cost. At the end of the day, it is seen that the amount of expenses falls more than the profit obtained from the reward point.
Avoid signing up for multiple credit cards if possible, regardless of the bonus. Also, if you do not have enough knowledge about credit card management, the benefits outweigh the benefits of using a credit card. So stay away from extra costs in the name of gift or reward.
Keep savings separate
Surprising to hear, you can control your credit card spending by keeping your savings separate. If all your savings are in a credit card account, the tendency to spend may increase. It’s a mental affair. As a result, unnecessary expenses may increase. So it is better to keep the savings safe in a separate account or scheme. It is possible to be risk free, but also to get out of the mindset of spending unnecessarily.
Use of cash
Credit card money is a kind of virtual currency, so it is not possible to realize the real cost of using it. So you can buy directly using cash and get an idea of the cost as well as stay away from extra expenses.
Since credit card purchases do not directly cost money, the concept of cost is a bit difficult to understand. It’s a mental thing. On the other hand, in the case of using cash, the issue of spending money can be felt psychologically. So shopping can be done using cash to reduce the cost of credit card. This makes it possible to stay away from extra expenses as well as have an easy idea about the expenses. Learn more What is the difference between Visa Card and MasterCard?