Your credit card is one of the most important tools you have in your financial toolkit. It can help you build or rebuild your credit, get cash back on purchases, and more.
In the below post, through their site Debt Relief Canada, A. Fisher & Associates share some tops tips on how to make your credit card work for you.
Through helping struggling individuals start their debt free journey, A. Fisher & Associates are experts in providing advice and information on everything from the consumer proposal process to debt collection laws and more.
Check out some tips to make sure your credit card works for you.
1. Use Credit Cards To Improve Your Credit Score
Credit cards can be a great tool for saving money and staying on budget. By using a credit card, you can avoid paying interest on your purchases and keep your debt under control.
However, credit cards can also help you improve your credit score. This is because responsible credit card use is one of the factors that credit agencies look at when calculating your credit score.
So, if you want to improve your credit score, use your credit card wisely and make sure to pay your bill in full and on time every month.
2. Use Credit Cards To Earn Rewards
Many credit cards offer rewards programs that allow you to earn points or cash back on your purchases. These programs can be a great way to save money, and they’re also a great way to get more value out of your credit card. When you use your credit card to earn rewards, be sure to pay your bill in full and on time every month so you don’t end up paying interest on your rewards.
3. Use Credit Cards To Build An Emergency Fund
If you’re smart about your credit card use, you can actually use your credit card to build an emergency fund. This is because many credit cards offer cash back or rewards programs that you can use to get cash back on your purchases. If you put this cash back into a savings account, you’ll have a buffer in case of an emergency.
4. Use Credit Cards To Pay For Big Purchases
If you’re planning on making a big purchase, like a new TV or a trip to Europe, using a credit card can be a great way to finance the purchase.
This is because you can often get 0% APR financing on credit card purchases, which means you won’t have to pay interest on the purchase if you pay it off within a certain period of time.
Just be sure that you can afford the monthly payments and that you pay off the purchase before the interest-free period expires.
5. Use Credit Cards To Save On Interest
If you carry a balance on your credit card, you’re likely paying interest on that balance. However, if you use your credit card wisely, you can actually save on interest.
Many credit cards offer introductory periods, which means you can avoid paying interest on your balance if you pay it off within a certain period of time.
Just be sure to read the fine print so you know how long the introductory period lasts and what the regular APR will be once the intro period expires.
6. Use Credit Cards To Get A Better Exchange Rate
If you’re traveling abroad, using a credit card can be a great way to get a better exchange rate. This is because credit card companies typically offer better exchange rates than banks. Just be sure to pay your bill in full and on time so you don’t accrue any interest charges.
7. Use Credit Cards To Improve Your Financial Habits
If you’re trying to improve your financial habits, using a credit card can actually be a helpful tool. This is because credit cards can help you track your spending and stay on budget. When you use a credit card, be sure to keep track of your purchases so you can see where your money is going.
This will help you identify any areas where you may be overspending and make adjustments to your budget accordingly.
8. Use Credit Cards To Get Discounts And Perks
Many credit cards offer discounts and perks, like free shipping or extended warranty coverage. These discounts and perks can be a great way to save money and get more value out of your credit card. When you use your credit card, be sure to take advantage of any discounts or perks that are available.
Using your credit card wisely can help you save money, improve your financial habits and even earn rewards. These are just a few of the ways you can use your credit card responsibly. When you use your credit card, be sure to keep these tips in mind to get the most out of your credit card and avoid costly mistakes.