Top Credit Card Hacks That All Savvy Spenders Should Know

Paying bills

Credit cards are almost a necessity in this day and age, and although they can cost borrowers each month, there are too many advantages that overshadow the costs. With the economy still stuttering a bit, many credit cardholders are looking for ways to spend better and be smarter with their money.

There are many tips and hacks for being better with a credit card that you can use to take control of your finances. It could be as simple as signing up for one of the many balance transfer credit cards to get a lower interest rate or using multiple cards for more rewards. By taking the time to learn how to make your credit card work for you, you can start seeing some very quick returns that will benefit you in both the short and long term.

Continue reading to learn how you can use your credit card to spend smarter and be more financially savvy moving forward.

1) Use Your Credit Card Strategically

When it comes to getting the most from your credit card, the best place to start is simply by identifying which payments or expenses are best processed with credit. Credit spending can be a great way to reduce your overall monthly spending for high-expense months – whether these are months with a lot of birthday gift-buying, months where you can expect quarterly bills to come in, or even just the end of the financial year period. 

This is all money that you were going to spend regardless, so it makes sense to put these additional expenses on your credit card so that you can comfortably pay off the balance once your statement comes through next month. This works to not only build your credit rating and maintain balanced monthly expenses, but may also help you to work towards attaining all the various rewards your credit card has on offer.

2) Double Up On Payments

If you are in the habit of keeping a balance owed on your cards, it is important that you make more than the minimum payment each month. That minimum payment may barely cover interest, and your goal is to reduce that overall balance as quickly as possible. Try to double up on payments when possible, as the faster that balance is reduced, the less you will end up paying for it in the long run.

It isn’t easy for most people these days, but if you can get yourself into the habit of paying twice a month, instead of once, it will help a lot in reducing the overall cost of borrowing money.

3) Research Better Rates

Credit card companies are constantly competing with each other for new customers, and there is no reason why you can’t take advantage of this competition. If you find that your interest rate is too high, there may be another card out there that can take on the balance and charge less. For those who plan on keeping a balance on their card, this could make a major difference in how much you pay towards your balance each month.

4) Automate What You Can

Technology has made it easier than ever to automate just about everything these days, including your banking. Mobile apps make it extremely convenient, and with a little bit of work and research, you can theoretically have all of your bill payments, including credit card payments, done automatically each month. By setting up automatic payment schedules, there is no chance of missing a payment, therefore no chance of incurring those costly fees that come with it. Technology can make these things much easier for you, all it takes is taking the time to get acquainted with the latest tools.

5) Rewards Should Reward You

A large number of credit card companies like to reward customers with points and money towards travel. But did you know that some frequent flyer programs allow you the opportunity to use your credit card rewards points to actually earn other types of rewards? 

There is so much more than just travel rewards out there now. So take the time to see what is available to you in order to find a frequent flyer program that not only provides all the most competitive holiday deals, but additional consumer offers and rewards as well.

6) Cashback Can Pay Payments

There are a number of credit cards that offer annual or monthly cashback as a reward, and if you use this system properly, you can get free card payments. This strategy will depend on the amount of credit you have issued, how much you utilise each month, and the rate of cashback, but it can be a great system for those who fit the bill. Look into the various cashback cards on the market, and you may find one that suits your spending habits perfectly.

7) Don’t Overextend Yourself When It Comes To Your Personal Finances

The number one rule when it comes to personal finance is not to overextend yourself. Whether this is on a home loan, a credit card, or any other financial lending situation, overextending yourself is always going to cause issues. Make sure you understand what you are financially comfortable with, set clear boundaries and limits, and make sure that you stay within those limits to keep yourself safe. A credit card can open up a lot of doors, but it can also close them just as quickly if it is not treated with respect.