5 Ways To Save Money By Using A Credit Card

5 simple ways to save money using a credit card

CREDIT CARDS ARE MORE THAN JUST A BACK-UP PLAN!

 

There’s no doubt you need to be careful with credit cards. There are people of all ages throughout Canada struggling with credit card debt in the thousands or tens of thousands. And if you start missing payments, your credit score will be in danger, which will affect your ability to acquire assets and may even limit your employment options.

Related: How to avoid turning $1 into a $29 Credit Card fee

However, credit cards are not inherently bad. Money mismanagement is, and the two don’t necessarily go hand in hand. If you are conscientious about how you use your money, you can actually save money by taking advantage of credit cards. Instead of battling to pay installments, you can live the lifestyle you choose without letting the debt ever get out of hand.

There are multiple ways to save money using a credit card. These are 5 of the most effective.

 

1. Transfer your balance to a 0% APR credit card

 

If you are already carrying credit card debt, there is a simple way to get out of paying crippling interest. Many credit card companies offer a 0% annual percentage rate (APR), and they’re willing to take on your balance. If you can pay off your balance during those 12 months, you will potentially save hundreds of dollars.

 

2. Take interest free loans for big purchases

 

In an ideal world, we’d only buy things once we had the money saved up. However, life happens, and often you’ll find yourself in need of an unexpected outlay. Say, for example, that your refrigerator breaks and is irreparable. It’s the sort of expense that cannot wait.

Well, with credit card companies offering 0% APRs (Annual Percentage Rate) for the first year – not just on transferred balances – you can essentially take a no interest loan. You can check out a review of Canadian Tire Options® Mastercard® as just one example of the many options available in Canada.

We actually have the Canadian Tire MasterCard and have for many years because it simply gives us the rewards that we are looking for as homeowners do plenty of renovations.

 

3. Get a cash back card and Save

 

Those who are financially conscientious and diligent about paying off their debt every month can benefit hugely from a cash back card. There are options that give you a flat rate on all purchases, as long as you use your credit card. If you’re paying up that card monthly, you’ll receive the cash back benefits without their being offset by interest. Of course, if you’re in credit card debt, the rewards are not going to be worth it.

 

4. Get travel rewards

 

One system of rewards that has been around for ages is the accumulation of travel miles. If you’re an avid traveler, these miles will help you get around the world. Not only do travel rewards cards give you free miles, but many also let you use points for hotels and rentals.

 

5. Sign-up bonuses

 

Finally, something you should take into account when looking for a credit card provider is whether they offer signup bonuses. These range from cash back to hotel stays and even air miles. They will come with conditions – for example, that you use a certain percentage of your available credit. If you’re able to navigate the system so that you meet the requirements while paying up your car.

 

Discussion Question: What are some of your favourite credit cards and why?

Share your comments below.

 

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Mr. CBB
Mr. CBB was born and raised in the United Kingdom who then moved to Canada where he is a permanent resident. He recently became a father to a very busy toddler who allows him to be a kid at heart. He bought his first house at the age of 21 after University and his second at the age of 24. Both Mr.CBB and his wife are Debt and Mortgage Free and they did it all in under 5 years using a Budget. Canadian Budget Binder is a place where he shares their financial experiences with his readers and hopes to learn about theirs. Welcome to CBB!
Mr. CBB
Mr. CBB

Comments

  1. Anne Russell says:

    Have had ups and downs with credit cards.
    In the end I use the PC Financial World Elite and got $2400.00 in rewards ($$$ off groceries) in three years. Use at Shoppers and No Frills and Zehrs for triple points.
    My only trick to making sure the card works for me is to pay it off completely every week. No “21 days grace” for me! No balance. Ever.
    My Canadian Tire MasterCard I use at Mark’s and the store and the gas bar. I get CT $ on the card which I save and use in store.

  2. I use PC financial MasterCard for any purchase at superstore. And a RBC westjet MasterCard for about everything else. Return flight from Calgary to Ottawa for $104 sound good?

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