What Features to Look for to Save While Using Your Credit Card?

Most of us already know the benefits and features a credit card offers. Many credit cards allow you to earn reward points, which add up over time to almost give you “free money.” This is especially true if you can pay off the balance on time the credit card’s lifetime. However, to choose the best card, you first need to understand the features, perks and limitations that it offers. You must also remember that the way to make the most of the card is to use is responsibly.

Take a look at what else to keep in mind while using a plastic or virtual credit card to save big.

1.     Reward Points

Many cards allow the cardholder to earn reward points every time they spend using the card. They might also give you bonus points for spending in certain categories like groceries, restaurants, and petrol. Your credit card reward points are almost endless, and you can leverage your everyday spending to earn valuable rewards.

2.     Frequent Flyer

You might have noticed that most airlines have a tie-up with a credit card company that offers their consumers a novel way in which they can earn points by using frequent flyer miles. If you always use the same card for airline bookings, you might just end up saving big on air tickets or even winning yourself a free flight.

3.     Determining a Spending Pattern

One size does not fit all. This is especially true when it comes to one’s spending pattern. To determine your spending pattern, itemise your expenditure and analyse it properly. Based on this analysis, you can choose a virtual credit card that is best aligned to your lifestyle. Check yourself and know where you spend regularly, whether you get brand loyalty, your daily expenses, and a lot more. This will help you find a card that is best suited to your spending habits to help you save more.

4.     Assess Affordability

When you think of buying a credit card, check the interest rate charged on balance payments, along with the penalty fee for late payments, the foreign exchange transaction fee, grace period without additional charges, credit limit and more. You should be fully aware of the terms and conditions, along with the add-on benefits, which may include complimentary insurance, vouchers and a lot more.

5.     Transfer Balance to Reduce Interest

If you have a credit card with a high interest rate, you can save big by transferring the balance owned to a different card with a lower interest rate. This will give you time to pay your balance without the accumulation of interest. Just remember to pay enough each month to bring the balance back down to within the introductory period or you will end up losing money simply by paying the interest amount.

When using a credit card, spend smartly and avoid the danger of high fees and charges by carefully researching beforeh you choose the card.