It might sound strange to you, but it is true that credit cards can make money
for us. A majority of the credit card owners find the plastic a nuisance and
can't wait to get rid of it. If you also belong to this group, think again,
credit cards have made life easier and financially more rewarding for some.
How did they do it? A large part of the achievement was fueled by good financial
management habits, but all of them used the following tips.
1. Use 0% intro APR credit cards
This is the first practice that most of the people who 'use' credit cards 'properly'
adopt. A credit card with 0% intro APR allows you to save on interest money
for a limited time. Though, a 0% intro APR on balance transfer is rare these
days, but it is not difficult to find a credit card, which has low rate on balance
transfer and the associated balance transfer fees. So, if you are stranded with
a credit card that bleeds you every month in interest rates. Try this thing,
it has worked for many and can work for you too.
2. Use credit cards with No Annual Fees
Credit card with hefty annual fees are very nagging, most of these credit cards
have rewards which look good on the face, but are very hard to redeem. The credit
card offer document mentions the annual fees in fine prints and since, most
of us bother the least to look at the small text, the thing gets slapped on
us. If one such credit card is bothering you, get rid of it instantly. There
are plenty of credit cards out there without any annual fees. Go ahead get them.
Although the sum saved on annual fees might not look tempting, but when you
add to it the money spent on getting those 'illusive' rewards, it gets huge.
And remember little things here and there can add up quickly.
3. Use Cashback credit cards
Cashback is the norm with the 'moneyearners'. They are always on the lookout
for a credit card with excellent cashback program. But, before you jump on to
the bandwagon it is pertinent that you understand the modalities of redemption
of cashback rewards. These crafty terms associated with the credit card cashback
programs are buried in fine prints. Make sure you understand every bit of the
terms. If reading the fine prints bothers you, nag the credit card representative
and get every fact clear. Compare the cashback program with your spendings and
calculate whether it will make money for you or not? This will get you a clear
idea whether the cashback rewards are real or just an eyewash.
The three tips mentioned above look pretty obvious but are most overlooked.
Go ahead use them along with good financial habits and use the credit cards
to make money for yourself. And keep in touch for more credit card related tips.