Credit cards are an amazing tool to spend, save and make money. To know how, checkout this article!
The idea of giving a kickback to cardholders for the transactions that they make came up in the late 1980s. Finally, in 1986, the famous cashback program strengthened the roots of consumerism in the context of credit cards and eventually led to the introduction of reward credit cards.
Today, modern credit cards are so much more than just a transaction option that it is tough to list down all their benefits. Not just to spend money, but credit cards are now an amazing way to save and make money!
From signup bonuses to discounts on special brands, there are several ways you can save and make money through your credit card.
Let’s see how you can make the most of your credit card and make money effortlessly!
Want to earn the highest cashback? Here’s how!
Earlier, the cashback options used to be pretty straightforward. For example, you used to get 1% back on every purchase that you made. Nowadays, there are reward tiers that decide what actual benefit you’ll get.
You may get 3X points on online purchases and 4X cashback on purchases made in a mall- this somehow makes it difficult to track the reading system and you will have to be careful while using your card in order to get the maximum cashback possible.
Tip: Credit card companies do not give you cashbacks out of their good will. It is a way for them to influence your spending habits and make you spend more.
For example, say if you spend Rs. 1000, you’ll get 1% back- don’t fall for these small temptations. The more you spend, the more you’ll be liable to repay. The best thing is to focus on big and permanent offers rather than tempting small ones.
Over time, credit card rewards have become extremely competitive. For some cards, you can get as high as 5% cashback, and that too, with no annual fee. But remember that even this 5% should not compel you to spend more.
The takeaway is not to spend more but to spend strategically. For example, if you offer this 5% cashback through Amazon, you can switch from another site to Amazon for some months. Instead of spending more, you can pick out items that you need the most in everyday life and get cashback on them.
Confused about how to earn your signup bonus? Here’s what you need to do!
Roughly half of the credit cards available today have signup bonus benefits. Especially if your card charges an annual fee, this benefit is even more lucrative. You get this free money, so don’t sleep on it. Just check the terms and conditions of your card and calculate if you have spent enough to avail of it.
If you have done so but don’t see any cash coming towards you, don’t worry. This process can take around 8 weeks for the company to finally make it appear to you. However, if you are keen on escalating the process, you can always call your credit card company and ask them directly to roll out your bonus.
Now if you haven't spent enough to avail the benefit and nor have you much time left, you may be considering spending a lot within a few days.
However, you need to take precautions in this regard. If you find that the signup bonus that you’ll be getting isn’t much, there is no need to waste your time and money on spending more to get it.
Should you throw away your card after earning the signup bonus? Well, signup bonuses are again an option to attract new customers. But this doesn’t mean that you have to discard your card once you get this benefit.
The reason is that applying repetitively for credit cards affects your credit score negatively. Plus, due to credit card application rules like the 5/24 rule, you may soon face problems in getting your credit card when you need it the most.
Therefore, if that card is able to satisfy your financial requirements, it is better not to throw it away. Rather, you can use it for your transactions.
1. Need to book flight tickets? Book through your company’s or bank’s personal travel portal!
Booking flights or hotels through the travel portal of your company or bank can save you hundreds of bucks. You get your hands on better discount coupons and amazing deals. The cashback that you earn can be as high as 5%.
You may even get a unique price-drop-protection on the booked tickets. Additionally, you can use your reward points to book your tickets, and if you are lucky enough, you may even earn some more reward points for doing so through the company’s travel portal.
Some benefits you may not know you can avail through your credit card:
- Cell phone protection: Your credit card can provide you with protection against cover loss, damage to your phone or theft.
- Insurance cover for your car: If you own a rental car, you can avail the benefit of free collision insurance and live your life with much less stress!
- Double warranty on various products: If any of your purchases, like fridge, TV, etc. has the merchant’s warranty, your credit can help you double the timeline of that warranty. However, this facility is not for car purchases.
- Travel delay or ticket cancellation protection: In case you or one of your immediate family members is unable to travel due to some issue like sickness, death in the family, weather, etc., your card can cover that cancellation either fully or partially. Also, if you just delayed your trip due to some emergency by at least 12 hours, you may be eligible for delay reimbursements.
- Extended return window benefit: If you buy any product that is covered under this benefit, you can get reimbursement for any damage or theft for up to 90 days.
A credit card is a whole package of benefits and reimbursements if you use it wisely and pick the right one for yourself.
For example, a 0% APR card comes with better signup bonuses. If you just be a little careful and study your card before investing in it, you can definitely lay your hands on something that not only saves money but also makes money!
If you are a newbie in the savings and investing world, the Jar app is your go-to option. With the easy-to-use features, Jar helps you to start saving within 45 seconds. You can invest in digital gold, roundoff your spare change, and much more. All with one app. Download the Jar app today!