To many, the word credit card sounds negative! It is often associated with people who can not pay and programs like the luxury trap. But what not everyone knows is that if you choose the right credit card, you can actually make money.
There is a lot of misinformation when it comes to how credit cards work and how you can use them. Credit card companies basically charge a fee every time you use the cards. It is therefore in their best interest to get customers to use their cards as much as possible. This is also why credit card companies offer different benefits to their customers.
So there are many benefits to using a credit card. That is, if you can control your buying needs. For example, the interest rate will never be raised as long as you have the money left over from your balance. There is another benefit, which may not seem so obvious. Your credit card balance will be charged one month in advance. So essentially you are delaying the costs of this month until next. This can be an advantage IF you can handle your money properly. Plan purchases and skip unplanned impulse purchases. You should instead use a credit card in the same way as a bank card. If the credit card is used as a regular bank card with well-planned purchases, then you can get benefits and money back (cashback)
4 credit cards with smart benefits
Petrol card
With a petrol card, you do not pay more than you need every time you refuel. Petrol cards give money back every time you refuel at the petrol stations the card is connected to.
Cashback card
With a cashback card, you can simply shop as you normally do and in connection with all your shopping, you get money back in connection with the purchases. Over time, you can raise enough money to get a hefty penny back to do something fun for.
There are also cashback credit cards where you get back bonuses on the purchases you make in the special stores the cards are linked to.
Food card
A food card is usually a credit card issued by or in partnership with a particular grocery store. When you then buy food, you collect bonuses on each purchase, which can then be used for new food purchases.
Travel card
A travel card, or holiday card, is a type of credit card with special travel benefits. Examples of such travel benefits can include travel insurance on the purchase when you pay for the trip with your credit card, cheaper withdrawals abroad. You usually collect points with each purchase made with the card.
Companies often tend to offer rewards to customers who use credit cards frequently. This is where the good stuff comes in. Since they charge a fee every time you use a card, there are some great rewards out there for literally no cost at all. As long as you use the credit card as your payment method. These benefits include redeemable bonus points, flight bonuses when there is a partnership with airlines. The best of all is all is cashback, ie money back on credit purchases. Money back is essentially a percentage of the amount you spend that the company gives back to you. This can be extremely rewarding.
Let’s assume that a credit card company gives you a refund rate of 1% indefinitely. If you use that card for 50 years, then you are essentially collecting a 50% discount on one year expenses. This means that you save 50% of your annual expenses after 50 years of use.
However, credit cards do not only consist of benefits. Before ordering a new credit card, watch out for the fees associated with it and how much you may be charged per year. Do the math and see if by the end of the year, that card will be beneficial to you. It is often a must to have a credit card and if used carefully and thoughtfully it can give you many benefits ist for just withdrawing money. It is up to YOU if the credit cards give pros or cons.
A tip is to check out the site Payup.se where you can easily compare both different loans and different types of credit cards. There you get lots of good tips, advice and can read lots of info about most things in loans and cards.
Shop smart!
