Credit card hacks everyone should know

2018-07-26 17:58:25.0

Ah, credit cards--- every shopaholic’s dream.

When our hard-earned cash still hasn’t reached the coffers of our bank accounts, it’s really easy to just skip on waiting to buy those brand name jeans we’ve always wanted through using our trusty little credit cards. With a certain high that comes with every swipe, who can blame those people who come out of shopping malls several stores later after a credit-backed shopping spree, right?

Well not really.

Sure, treating yourself every now and then can be a from of #selfcare but retail therapy can be quite dangerous to your financial health if you, dear Reader, are a trigger happy shopper armed only with plastic AND with no sense of how compounding interests work on our all too beloved CC’s. With the level of financial education in our curriculums before, it sort of make sense why horror stories of how five digit debt from years before on credit cards balloon well into seven because someone can’t make payment. Couple that with annual fees that you might incur and you would start to think --- Is it really worth it?

The sad thing about these stories is how it happens even to our most educated professionals. That’s why, as wise consumers, we must look into ways on how to save on our credit card bills and here are some ways that you can do that.

1.) Don’t get a credit card

Really, it should be simple: If you can’t afford to make payments when you purchase through the card, then don’t get one. That would save you, months or even years later from the stress of having to think about where to get money to pay for something you bought on a whim.

2.) Avoid paying annual fees

This might seem like a tip to land you in jail but really, it isn’t--- A chunk of what we pay for our credit card bills are actually in the form of annual fees that can be skipped by getting cards that don’t have them. If you wisely decide that having a credit card is something that is helpful to you, there are a handful of banks that grant plastic without the need to shell out more cash just to maintain them. Annual fees can be in the form of membership fees and another way of getting rid of them is through asking the bank nicely to waive them if you’re a member in good standing.

3.) Try flexible payment

For most, payment due dates are one of the most dreadful things to happen. While life would’ve been easier if we just got everything that we need without paying for it, our society isn’t a utopia. That doesn’t mean we can’t take take a bit of control on when we pay. Finance textbooks suggest to try and stretch your payment period without making your lenders angry. Such concept is also helpful in personal money matters when our income comes in later than when payment is due. This is why it might be helpful to set up a payment scheme that works for your personal case and make paying for debt easy.

4.) Max out your rewards

Some people like to have a full house of credit cards in their hand. While this might come sketchy, this actually works for wise spenders as some credit cards offer rewards for specific expenses. Case in point, travel. Some credit card companies offer rewards and discounts on travel on specific dates that may not be offered by others on the date that you need them. This actually might work for people who need to travel a lot. Who knows, you might get cash backs for spending.

5.) Take advantage of cash backs

While it isn’t exactly true that it’s “free money” (sorry, shoppers), Cash rebate is still great because it’s still discount. By actually reimbursing money that would’ve been spent, card users can actually expend less if they take advantage of cash-back programs. Some credit card companies offer cash backs on specific purchases like groceries and finding a method that works for you might help you cut costs. If you tend to have big purchases on one specific need, why not look for a card that offers cash back on it? Trust me, it will work on your advantage.