Credit Cards Can Save Your Money

Credit Cards Can Save Your Money

Many people in these days are of the view that credit cards are not good and the people who use them are mad. somehow, if used wisely and carefully credit cards can actually be a beneficial to you and save your cash. Many financial planners will advise you to burn all cards, keep your money in savings, checking and mutual funds. purchase only what you can afford and is necessary, this is good advice. But if you can use credit cards to your ease and betterment, than its your basic right. In this context, major key of success is discipline. You must be willing to use the card only if you know that you can pay clear your loan monthly. Most credit cards allow you to use the card for a full billing cycle before it is due and without any cost. So, if you put enough cash into a savings account to cover those purchases, then you are earning the interest for 25-30 days before paying it out on the card. You get the interest instead of the credit card company. One month’s late fees and interest on a credit card will penalize you more than you earn in a year, so try your best to avoid such sort of mistakes. Similarly, with cash advances, which start charging interest the moment you take the money out – and at a higher interest rate. Some cards also charge a cash advance fee, so while using your credit card for cash is like taking out a high interest payday loan. This is easy money for the credit card companies, which is why to send checks to you for such purposes First of all you should neutrally justify yourself that you can pay the bill each month, and then use it frequently to take advantage of rewards or cash back bonuses on the card. Use it for groceries, gas and prescriptions. All of these purchases will help to add points to your reward account, which can be redeemed for merchandise or cash. But be ware that you have to pay the bill each month within the due dates. while using the card to gain rewards, must read the fine print on the reward system to make sure that there is no expiration date mentioned. If there is and you can’t accumulate them fast enough to make it worth it, then it’s not. The point, one in hand is better than two in bushes. Most of the times Credit cards carry a hidden money-saving benefit, too – purchase protection. By purchasing with a credit card, you trusting that the item is new and operational. If it turns out not to be, then the credit card company can work in your corner to make sure that you are either refunded or the item is replaced. credit card company is fully deserved that she can withhold payment from the vendor, which is a strong negotiating tool for consumers. Purchases by check or cash do not have this benefit and consumers are at the mercy of the vendor. Credit cards can be a good source to save a few dollars here and there as long as you follow these rules: pay the bill in full each month, don’t get cash advances, know the reward system, and investigate your rights as a consumer.