09 Dec 2018: #FinancialBytes: 5 ways credit cards can help you save money
Many think of credit cards as a debt trap, fearing increased spending and excessively high interest rates, and hence they completely refrain from using them.
However, the truth is that credit cards can help you save money and earn rewards if they are used responsibly - it all depends on how one uses their credit card.
Here are 5 ways to save money by using credit cards.
Shopping: Save money, get exclusive discounts and cashback offers on shopping
Many people prefer using credit cards for shopping online as well as offline as they can avail discounts or cashback offers most of the time and save some bucks.
Almost all banks offering credit cards tie-up with major e-commerce portals to offer exclusive offers or additional discounts to their customers.
Some credit card providers also offer cashback and extra off on offline transactions.
Fuel expenses: Use your credit card to save on fuel purchases
There are many credit card providers in India that have partnered with fuel retailers to provide discounts, cashbacks, or rewards when customers purchase fuel using their credit cards.
Some banks charge an additional surcharge on fuel purchases, but most of them waive it off entirely. Some offer upto 5% fuel surcharge waiver.
Many cards offer the fuel surcharge waiver in the form of cashback.
Exclusive offers: Travel offers, restaurant deals, free movie tickets
Most credit card companies are tied up with leading restaurant chains, travel companies, luxury hotels, lifestyle stores, cab providers etc. and cardholders can save a lot by availing deals and discounts on the services offered by them.
They can also avail exclusive discounts on movie ticket purchases, including free tickets, BOGO offers, and movie vouchers, using their credit cards on the bank's partner websites.
Rewards program: Spend using credit card and earn reward points
Almost all credit card companies have a reward points program under which the cardholders can earn some points for their spending.
They can get reward points for online shopping (extra on partner sites), grocery shopping, offline purchases, telecom expenses, hotels/dining expenses, fuel purchases, cab rides, airline tickets, etc.
The accumulated reward points can be redeemed on the bank's online store or partner websites.
Fact: Avail No-cost EMI, flexible EMI offers
A majority of banks offer No-cost EMIs (zero interest EMIs) to credit cardholders by waiving off the interest completely or giving it back as cashback. Some companies also provide an option to the customers to convert their purchases into flexible EMIs at affordable interest rates.