Outlook Money
Credit cards are typically used as convenient tools for expenses. These are, however, money-savers if used correctly. One can gain the benefits from the credit card once settled on the right card and come up with simple tactics that will keep away from the typical risks such as high interest rates and fees.
Before choosing a credit card, consider benefits like reward points, cashbacks, discounts, etc., and whether it aligns with your spending habits.
Almost all credit card issuers offer a welcome bonus to attract new customers. The reward can be reward points, cashback, and vouchers. Sometimes, the annual fee is waived, subject to spending.
Paying credit card bills on time can help avoid extra interest and late fees. A credit card can charge a high interest on an unpaid amount as a penalty.
If benefits are used wisely, one can save a lot of money. Pay attention to the rewards and discounts to save more.
A cash advance can be made through a credit card, but it should be avoided as it charges high interest.
Frequent credit card use can help build up a good credit score, besides generating more reward points.
Compiled by Syed Muskan