SM Saving Money And Credit

Shop and Save


You have long known the credit card. It is said to be your ultimate gear when you go shopping. The plastic can even be a best friend to a happy shopper.

Considering the times nowadays, this plastic seems to be the least practical option out there. It is actually the most convenient tool used for consumption when you are out of cash. It lures you to spend.

Is there anyway for your credit card to be useful for your saving endeavors?

Yes, actually there are ways that the plastic can be helpful. You CAN actually save money with that credit card.

0% Balance Transfers

If your present credit card has high interests, you can transfer your balance to one with a low-interest or no-interest at all. It can offer you a 0% interest for a certain period and then a lower regular rate later on. A 19% interest rate can be transferred to one with 16.1%. The 2.9% difference means a lot, especially in the long run.

Lower Interest Rates

Look for one with the lowest rate among others to further maximize having a credit card. This definitely spells savings. If you do not have a balance yet, it is best to look for a card without annual fees.

Take extra precautions, too, in assuming that the lowest interest rate is the best for you. Factor in your buying habits. You may be attracted to the low rates, but the end result may not be desirable if combined with the annual fees and the like.

Rewards Program

Reward points system and cash back programs are offered now. This can save you money. Maintaining a low balance despite your frequent buys will give you at most 5% off on purchases.

There are even cash rebates up to 5% when you use the credit card at certain gas stations, convenience stores and groceries. This can be automatically applied to your bill, the more you can feel the savings you are making.

Maximizing the Experience

To reap the rewards, you must avoid the drawbacks. A prudent person will definitely look for the best deals and grab it right away but with some caution.

Thus it is necessary that you read the details. Check the fees that may be charged and the penalty rates in case you delay. This may be the downside of the deal offered to you. For example, be careful of cash advance features of credit cards. Some of them can be very expensive. They can come with numerous fees and higher rates.

Be wary! Spending cannot be avoided at times. Just don’t forget your goal, getting a good deal to save.