Boost Your Savings with a Credit Card: Check Your Eligibility Now
Here are some ways in which you can boost your savings with a credit card
Updated On - 26 July 2023, 03:06 PM
Credit cards are one of the most underrated hacks when it comes to saving money. They can help you make the most of your expenses with attractive cashback options, rewards, points, and much more. Additionally, they can also help you access exclusive deals and discounts, which can help you save even more!
Here are some ways in which you can boost your savings with a credit card:
There are a number of credit cards available in the market, catering to diverse needs, spanning from low-fee cards for beginners to premium international cards. Irrespective of your requirements, you’ll likely find a card that’s right for you! This will help you get more out of your expenses. This is why, it’s important that you choose your credit card wisely.
Credit card providers offer different benefits and rewards for different types of cards. Let’s assume that you choose a travel-focused credit card, which will likely offer complimentary lounge access, discounts, frequent flyer miles, and privileges on hotel accommodations. This is perfect for avid travellers and vacationers.
On the other hand, a shopping-oriented credit card will give you accelerated rewards and cashback for lifestyle and luxury purchases.
So, before getting a credit card, make sure to analyse your needs and spending habits. This will help you choose the ideal credit card for you.
- Make Use of the Welcome Benefit
Many credit cards offer exciting welcome bonuses, like vouchers, rewards, and coupons. Making use of these will help you save on purchases or accumulate rewards that can be used later.
Sometimes, you may have to spend a certain amount of money in the first 30 days or so in order to be eligible for these rewards. There is a chance that you may overlook these details and miss out on offers. So, make sure to read the credit card brochure well so you can save more while spending.
- Redeem Your Reward Points Wisely
Credit card providers will often give you multiple ways in which you can redeem your rewards. Some of the most popular rewards include gift vouchers, cashback, and merchandise from a catalogue. Being aware of how your rewards can be redeemed is a great way to optimise your savings. This will help you choose a redemption option that works for you.
In case you’re looking to give a gift to a loved one, a gift voucher may be a great idea. On the other hand, if money’s a little tight, you can choose to direct your rewards towards upcoming credit card dues. This way, your rewards get converted into cashback that can be used for future credit card repayments.
- Save on Foreign Transactions
If you’re a frequent overseas traveller, this one’s for you. You may know about those pesky transaction fees on international transactions all too well. With these rates going as high as 5% on every transaction, international spending can become very expensive in a short span. But, worry not, many credit cards come with lowered or even zero foreign transaction fees.
In addition to avoiding foreign transaction fees, many credit cards also offer accelerated reward points on international transactions. Having the right credit card can help you save a lot of money on your international trips while eliminating the need to carry around cash.
- Take Advantage of Price Protection
When you make a purchase, there’s always a chance that you may find the product marked down just days or even hours later! This can be quite stressful, particularly with big purchases. But, when you make a purchase with a card that comes with purchase protection, you won’t have to worry about this.
In case you find that the price of a purchased product has fallen considerably, you can report this to your credit card provider. They will offer you a refund for the difference amount.
- Understand the Benefit Structure
Every credit card comes with a unique reward structure. Certain credit cards offer accelerated rewards for entertainment spending while others do for travel expenses. Understanding your credit card’s reward structure will help you maximise your savings by claiming discounts, cashbacks, and freebies.
Now that you’ve gotten a sense of how a credit card can help you save more, let’s explore how you can get your hands on one! First, you’ll need to meet a basic credit card eligibility criteria*:
- You’ll need to be at least 18 years old
- You must have a regular source of income
- You must be a citizen of India
The aforementioned eligibility criteria is a very basic one. Apart from this, credit card providers can also have additional requirements depending on the credit card you choose. Generally, credit card issuers will also take a look at your income levels, credit history and score to evaluate your eligibility.
All in all, credit cards are a great life-enhancer, they can help you make the most of your spending. But, make sure you exercise caution while using them as it can be very easy to overspend with a credit card.
*These criteria can vary depending on the credit card provider’s policies.