In India people are unaware of how valuable a credit card can be if utilised properly. Many individuals use credit cards carelessly and end up in debt. Credit cards can assist us in a variety of ways if utilised carefully. The best credit cards in India offer some benefits and discounts that if used properly enable you to eventually save money from your credit cards.
It would be beneficial for you, if you start paying for all of your expenses with your credit card rather than your debit card because when you pay your bill using your debit card the money gets deducted instantly whereas when you pay using your credit card, you have the option to pay back the amount after 45 days.
Here are some of the tips you need to follow to make money using your credit card.
Avoid paying interest on your Credit Cards
The first step in figuring out how to generate money using credit cards is to avoid having to pay interest on your credit cards. Having too many credit cards at once can be a difficult task. You should always keep an eye on your total credit limit, of all your credit cards, that it should not exceed your monthly income or you can find it difficult to pay your credit card bills and can end up in debt.
Avoid Debit Card and Cash Transactions
The next time you make a transaction, be it groceries or any other expense try making that transaction by your credit card rather than paying for it via cash or your debit card. If you pay using your credit card, you would not be paying from your own money and your money would rest in your bank account and earn interest. Avoiding multiple cash and debit card transactions can help you maintain your savings account balance and would eventually earn interest for you.
Whenever there is a credit card there are reward points. You can earn reward points for almost every transaction you make using your credit card and can further use your reward points to avail different deals and discounts across various locations to save money on your spends. Money saved is eventually money earned. You can even convert your reward points into cash rewards.
Invest Your Money
If you have a good knowledge of making investments , then you can invest your credit card bill amount rather than letting it sit in your bank account and earn interest. There is an option that you can earn even more than the bank interest by investing it in various things like buying gold, or investing it in the share market if you have knowledge about the share market. It is not recommended to invest if you do not have any knowledge about making investments.
Postpone Paying Your Credit Card Bill Until the Final Moment.
If you instantly pay your credit card bills using your debit card you would end up saving absolutely nothing because you have the option to pay your dues within a few days time. By delaying your credit card bill payments you can earn interest on that money for that particular time period instead of paying the same amount at the beginning.
Negotiate an Extension of Your Credit Payment Cycle.
The longer the grace period, the more you can delay the payments and more would be the interest you earn. So, try to negotiate with your bank and try to increase the grace period. Generally credit cards with a higher limit offer longer grace periods than credit cards with lower credit limits.
Apart from the above mentioned points you need to be disciplined about your spending habits. Be cautious about the payment deadlines so that you don’t miss out on your credit card payments. Being disciplined with your bill dues would give you advantage in apply for credit card or loans in future as banks would consider you creditworthy.