Save money by credit card

Save money by credit card

With the right use of credit cards, you can save a lot on your daily consumption. Save up to thousands per year on daily expenses.

Credit cards may have an undeserved bad reputation, but what most people do not know is that with the right use of credit cards, you can save a lot on your daily consumption. To do this, you need to follow some rules:

  1. First of all, you need to avoid credit cards with high fees. Fortunately, there are many credit cards that are free of charge, as there is great competition among the different providers.
  2. Pay back your entire credit until the due date. Most credit cards have between 30 and 45 payment-free days, but after the payment is due, interest is added to your credit. These interest rates can be quite high, and then it can be expensive to have a credit card.
  3. Avoid being tempted to overuse. While you may have access to $ 150,000 in credit, keep in mind that money will be repaid. If you do not pay at maturity, it can be expensive if you do not remember to check the interest rate.
  4. Some credit cards have a maximum limit on the discount, and it pays to check if the discount goes to one’s major expense item as groceries.

Save on insurance

You can save on your insurance with a credit card. The most common insurance that comes with a credit card is travel insurance and cancellation insurance or accident insurance. If you buy travel and cancellation insurance with the trip – ie via the travel company – it is often several hundred kroner, which it can be more fun to spend on other things. If you are far away, or are traveling for a long time, it can be a lot more expensive with separate purchase of travel insurance in addition to the trip. You just have to remember to check what and who the travel insurance covers and whether it is good enough for you and your family.

Accident insurance has varying annual premiums depending on who you are and the company you buy them in, but no one is free. If there is accident insurance in your credit card, you do not have to pay for it. Also, remember here to check how much the insurance covers and whether it covers your family, or just you.

Save on clothes and groceries

Save on clothes and groceries

If you love shopping, you can save a lot with a credit card. The typical discount is around 3%, and it may not sound like much, but if you shop for USD 2000 a month with a discount of 3.46%, you can save more than USD 800 a year. If you get up to bonus points or cashback on merchandise purchases, the profits can be quite large.

Some credit cards also have a discount on groceries. The typical discount is between 2 and 5%. With that regular consumption, Kola and Mari Cordman and their two children spend around USD 8,000 on food and groceries. With a discount of 3% they can save USD 2880 a year.

Save on fuel

car fuel

For daily driving there is a lot of fuel, and filling the tank only four times a month can save you a lot. In our imagined example here you have a credit card with a 3% discount on fuel. If you add 50 liters of gasoline to your empty tank, with a daily price of USD 14.38 a liter, you save 21.50 every time you refill your car. In one year, this will save you more than USD 1000 a year, and this does not include long trips for family visits and holidays.

You can even get cheap luxury with your credit card.

Thomas Reasor