Guide to Saving Money with Your Credit Card

Whatever your lifestyle and your income, there is a credit card that is just right for you. Whether you are a shopper or a frequent traveller, credit cards make life easier for you. The best part is, apart from the convenience they help you save money too!

With reward points, cashback, and exclusive discounts, there are many ways in which you can make your credit card work for you.

Let’s find out how you can save money with your credit card and basically answer the most asked question of ‘why get a credit card’.

However, you need to check your eligibility and your needs before selecting your credit card.

Ways in Which Credit Cards Help You Save Money 

Here are some smart ways to save money with your credit card:

1. Cashback

One popular way in which credit cards help you in saving money is cashback. Every time you buy something, a certain percentage of it is paid back to you as cashback. Different credit cards offer different amounts as cashback, and you need to check the terms and conditions before you choose a card.

cash back

Some credit cards will offer cashback if you spend online and offline. The percentage of cash back for online and offline will be different. You can also get cash back for purchasing items on EMI through your credit card.

Certain co-branded cards that have tie-ups with online shopping portals. You need to be a regular shopper on these sites to gain from these cards. Purchases made from partners of these portals also give you cashback benefits.

The cashback is reduced from your credit card bill payment.

2. Reduced Fuel Costs

If you have a co-branded credit card with certain oil companies, then you save on fuel costs. To benefit from this card, you need to travel long distances and have a high fuel bill. You should buy your fuel from a specific oil company.

There are some great benefits like a certain quantity of free fuel annually through fuel surcharge waivers and reward points. You get reward points for spending a minimum amount at the designated petrol pump. These reward points can be carried forward and even used for the purchase of groceries.

Some branded cards offer payback points that can later be redeemed for fuel. Check the annual fee and renewal fee for the chosen card. The annual fee charged by these cards can be waived if you spend over a certain amount every year.

3. Air Miles

If your work takes you around India or worldwide, then check out the fantastic benefits that some cobranded credit cards offer. Earn points every time you travel with each point worth INR 1 -travel voucher. Some cards offer you rewards points as a welcome gift.

Spending a minimum amount entitles you to bonus miles. You get additional miles on renewal. These miles can be transferred to Frequent Flyer Programs. You can accumulate these air miles and redeem them whenever you want; there is no time limit.

Some cards have tie-ups with travel aggregators like Yatra, and you get vouchers from them on joining. Look for credit cards offering accelerated miles and the eligibility conditions.

Apart from all these, you also get complimentary access to select airport lounges along with refreshments.

4. Shop More, Save More

If you love shopping and end up with huge bills at the end of the month, then credit cards can help reduce your shopping bills. You get rewarded either through cashback or discounts or both. The cards offer you free membership to exclusive programs providing discounts on shopping.

There are co-branded cards with exclusive deals like 3 to 5% cashback on purchases. You are also eligible for a no-cost EMI that means you just pay the regular price of the product without any extra charges like interest.

You can enjoy reward points which are multiple times the normal benefits along with discounts. Get gift vouchers as welcome gifts. You need to shop with the shopping partners of the credit card.

These cards offer you discounts when you buy groceries or clothing online. You are eligible for reward points every time you shop with their online partners. Some cards are lifetime free depending on your annual expenditure while some have a low annual fee.

The bonus is that during the shopping festivals these online partners often give you even bigger discounts and help you save more money.

5. Pay Less for Movies

If movies are your life, then credit cards are your best friend. Get discounts of up to 25% every time you book a ticket online. Some cards offer free vouchers on an annual basis that can be redeemed monthly.

Credit cards also allow you to buy resold tickets for a great price. Sometimes people have some last-minute emergency, and you can grab their ticket through the secondary ticketing option. You can also get discount coupons.

Combine your credit card benefits with smart options like going for that morning show on the weekday instead of going on the weekends. Certain cards offer discounts across all categories. You can accumulate reward points while shopping and redeem them when you watch movies.

You could also get cash discounts on the second ticket you buy. Your annual saving potential is up to INR 12000.

6. Quality Dining at Best Prices

If you love food and want to save on your hefty bills, then go for credit cards that offer complimentary Zomato Gold membership where you can get up to 40% off on dining out when you spend a minimum amount on your card. You’ll also get a 15% discount when you dine at partner restaurants.

7. Save on Overseas Trips

If you travel overseas regularly, falling sick on any of your trips can be expensive. Some credit cards offer emergency overseas hospitalization expenses subject to a certain limit.

You don’t need to carry cash when you go on overseas trips. There is a foreign currency markup fee that is 4% of your bill. Go for credit cards with low markup fees that are half this amount or lower.

8. Save Smartly With Credit Cards

Credit cards are not only a part of your lifestyle, but it gives you multiple opportunities to save money. Whether you love shopping or travel, you can save on your total bill. You get rewarded through cashback, reward points, and also discounts.

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About FinanceGAB

Ajeet Sharma is a financial blogger and I am blogging since 2017. Financegab is a personal blog dedicated to personal finance. The main aim of this blog to help people to make well-informed financial decisions.
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