Owning a credit only becomes a burden if you are spending more than what you earn. Having one gives a lot of convenience but can also make you regret it if you won’t carefully manage your finances.
You have to learn how to discipline yourself when it comes to buying the stuff that you need over the things that you want. Make sure that before you get a credit card, you are ready to take full responsibility of your debts.
Here are six simple yet amazing ways that you can use to make the most out of your card.
- Take advantage of installment plans for large amount of purchases.
Your bank is definitely affiliated with the malls and stores near you. Just ask the cashier if the installment plan is available for your card.
If yes, then you can choose either three, six months or even longer periods without paying any monthly interest. This is actually how you can take advantage of that “buy now, pay later” benefit of your credit card.
- Collect points and redeem rewards
You can earn points with your credit card and exchange them into gift cash, vouchers, appliances, and many others. It’s great that every time you use it, you also get a chance to earn something back.
One trick that can make you earn more points is to use your card to pay your bills. Just transfer the money immediately to pay your card so it doesn’t add up to your other purposes.
- Know about the latest promos and discounts
Try to see whether any of the promotions that were sent to you via email or text message would suit your need. You can save a lot by taking advantage of these discounts and freebies on your card.
Just remember not to overuse your card. If you do have the money, it’s always better to pay it immediately. If not, then think first whether you really have to use your credit card or not.
- Skip paying the annual fees
Many banks offer free annual fee for the first year and that’s already a good deal. But there are also banks who are kind enough to waive the annual fee for your succeeding years using the card and especially if you have established a good credit history with them. Why not give it a try?
- Lengthen your credit card payment due date
Due dates are typically 25 days after your statement closing date yet you can actually extend it up to 54 days. How? Well, the trick is for you to use your card on the day after your statement closing date.
Let us say your credit card statement closes on the first of the month so your due date would possibly be on the 26th of that month. If you make a purchase on January 2 and never uses your card again, that transaction will end up on your February statement and will be due on the 25th.
If you count the total of days in your grace period to pay the card without incurring any charges, then that would be 54 days. Amazing, isn’t it?
- Think before buying
In this day and age when a lot of people get easily jealous of what others possess, try to be someone who thinks of the future. Credit cards make buying become easier so it is important to discipline yourself when it comes to your finances. Be someone who controls the card, and not the other way around.