How to get the most out of your credit cards? Well, this post answers the reasons that you should re-consider credit cards to your own benefits. I, for one, have been using credit cards for my advantage for over three years now. If I calculate the cashback and rewards I have collected, I think the total dollar amount is over $1,000.
Many people consider credits cards as a saving grace. By using these cards, people get to pay their bills, buy food for themselves and their family, and purchase other necessary needs. But if left unchecked and improperly managed, credit cards can be the nightmare of many.
With so many credit cards out in the market with different and tempting perks, a lot of people get into the habit of getting cards without fully understanding the pros and cons of these plastics. I have never been a fan of credit card debts but I like the perks attached to them. Sometimes, credit cards do more good than harm to people, if properly used.
How to get the most out of your credit cards
Here are some of the ways you can take advantage of those cards I don’t recommend that you open credit cards but I just want to share how you can get the most of them without experiencing those worst nightmares.
Cashback and Reward Dollars
Get the most out of your credit cards by earning cashback and reward dollars. I can’t even begin to list the number of credit cards out there that provides bonuses, reward dollars, cashback, and other perks.
There are cards designed to give out rewards or cashbacks for gas, groceries, travel, and others. I’m not indicating that you get all these cards to maximize the benefits but I’m saying that there out cards with specific perks that you can take advantage of.
In a poll of nearly 800 wealthy US residents conducted by CreditCards.com, 3 out of every 5 people with investable assets of $100K or more indicated that cash back was their favorite reward from their credit cards. It is good to note that while the respondents in the said poll were wealthy individuals, cashback is a really great reward that credit card consumers need to give consideration to.
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Introductory Offers
Get the most out of your credit cards by taking advantage of introductory offers. If there’s a need to open a new credit card, try to get one with not only the 0% introductory offer but also the one that gives out a sign-in bonus and cashback.
I remember when my wife applied and was approved for a credit card, she got the 0% introductory offer and a $200 or $300 bonus. The bonus, the introductory offer, and the cashback did go a very long way in terms of savings. Personally, I call these cards as cards especially designed for thrifty savers like me.
No Interest for Months
Get the most out of your credit cards by taking advantage of other offers. For those who are in immediate need of funds to pay utilities, phones, or other big bills and don’t like to pay the hefty interest charge, then, the “No Interest for Months” is an alternative.
But before taking any offer like this, make sure you understand that you need to pay the amount within the designated period or you’ll get slapped by that interest. I believe that it is best to gauge whether or not you are able to pay the amount on or before the period ends.
In a recent rate survey by CreditCards.com Weekly Credit Card Rate Report, the national average card rates jump to 15.07%. This 15.07% is quite high and if you happen to have a credit card rate like this and an offer for “No Interest for Months”, you may want to look into such offer as it may be your ticket to less headache and savings from not paying interest charges.
Credit Line Increase
Get the most out of your credit cards by asking for credit line increase. In addition to getting cashback, reward dollars, and no interest for a certain number months, you can always try to request for a credit line increase from your credit card companies.
Even though I don’t go up to the limit on my credit cards, I always ask the card companies if I can get an increase to my credit limit.
Am I crazy to ask for an increase? My answer is not at all. It all ties back to my credit score. The higher the credit limit and the lower the balance the better it looks in my credit score and my overall credit health over time.
I should also say that with improved credit health, the greater the chance I get lower rates if I decide to get another cash-making credit cards or something of that sort.
I personally believe that to get the most out of credit cards is to make sure you pay your credit cards on time and in full and to not go over what you are capable of paying. Having the best credit cards in the world mean nothing if you only pay the minimum, get charged interests, and slapped with those other dreaded card fees.
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I’m afraid this doesn’t really count here in Hungary – no bonuses etc only have to pay monthly fee for using my cards.
Awww. I didn’t know that.
Thanks for sharing your tips here Allan, is there are particular company doing a good deal if you transfer your balance at the moment?
There are a couple of credit card companies that allow you to transfer balance. The only catch is the you have to pay 3% of whatever balance you transfer.
I don’t think I would personally get a credit card but great tips 🙂
Thanks.
Great post, we definitely researched the best rewards when deciding what card to use. Since we travel a lot we make the most of hotel rewards!
Great job you guys are doing there. For me, it’s always best to target those cards that will provide you the best rewards.
I agree with you on the refinance of the credit cards. Here in the Uk you can actually get a new credit card from another bank and transfer your balance on it, not paying any interest for the next 12 to 36 months. You have 6 months to transfer the balance, which automatically pays up the old card. It’s a pretty smart move to do but you do need a perfect credit score in order to do this. It’s very important to never miss a payment to the credit card and never have more than 25-30% spent out of the limit of the card.
It sounds like the same promotions that we have here in the US. In addition, there are promotions for existing cards that allow you to transfer balances from the other card to the one that’s on promotion.
Such a great tips, I’m new to this “world” of credit cards, but I definitely must learn before I am an adult.
Thanks.
I love using my credit cards and getting cash back. It is so true that there are so many benefits to using a credit card along with building up your credit score!
You are correct on that. Looks like credit cards are working well for you.
Superb article! My number go-to is the cash rewards and points which we can redeem. Thanks for the other tips too!
Yes. I do have that feature in one of my cards and use it like crazy to get cash back. But of course, I use it within my budget.
Great tips Allan. I usually just avoid using all together, because I hate having credit card debt. But now I can see there are some ways to use it cleverly . Thank you
For responsible individuals, credit cards can be their best friends. For those who are not, then, they can be their worst enemies.
I don’t trust myself with a credit card, I am worried about overspending or using it when I shouldn’t but great advice.
That’s good that you know yourself in relationship to using credit card.
Great tips! When we moved to Norway we actually got rid of all of our credit cards and we have yet to get another one here. If we do get one I think we will get one that gives us some travel points or something.
That sounds like a good plan. Good luck.
In our country, credit cards are often misused and abused. I have seen ny officemates being harassed by the collectors in different ways just to pay their debts. It’s horrifying for me coz I’m allergic in having debts. Although my husband has credit cards, we often use those for buying appliances and other home stuffs ONE AT A TIME. Once we finished paying one stuff then that’s the time we will purchase the next one.
When I lived in the Philippines, I used to hear a lot of horror, excruciating stories about people getting harassed by credit card companies. That is so unfortunate.
Credit cards are very useful. Especially, when you travel a lot, they can save your life. It’s not easy to choose goods one, but with some effort you can find nice one, e.g. with cashback. Good post.
There are a lot of credit cards out there and it’s always best to take your time with researching the cards that are right for you.
Varies to your card provider. It doesn’t attract me to get a credit card in my country though I thought that several times. Good to know these points!
That is true, that is, it always depends on your card issuer and where you are in the world. But here in the US, there are opportunities you can leverage when it comes to credit card usage.
I’ve always wandered how credit cards worked in the US, thanks for the insight, here in Italy they work very differently.