Earn & Save Money with your credit card

Use credit card wisely, unless you would lose your money…. I am going to explain how I practically reduce money wasted on credit card. I hope my practical tips would help you to save your hardly earned money.

I am currently using two credit cards from two different banks. Last three to four years I used both without worrying the way I use it. I never understand that I waste money by using credit cards until last month. I just pay for anything by using credit card if money is not in my pocket. I did the same even I have enough money in my pocket I kept the money to pay for other places where credit cards are not available. Even I have enough money in my bank account, I never worry to go to bank and withdraw money since I have my credit card in my pocket. 

When I saw my credit card bill two months before, oooops…there were many charges. Earlier I never noticed such charges. Actually I never went through my credit card bill previously. I just paid. I collected all previous credit card bills. Then only I realised, this is not new charges, I already paid lots of money for these charges. So, I worried about myself and carelessness of mine, I always worried to earn more and more money. I never worried to save money. I shamed about my carelessness. Finally I come up some strategies to save money while using credit card. For last two months those strategies worked perfectly. I hope most of strategies would match with you and your credit card habits and help you to save your hardly earned money.

• Stop withdrawing cash by using credit card – from the day I withdraw money from ATM machine the bank starts to charge the interest, further they charge additional “cash withdrawal fee” which is vary between 1% ~ 1.5%. Finally it is a waste of money.
• Try to avoid credit card in abroad, there are many charges apply when I use credit card abroad. Anyway I still use credit card in abroad in unavoidable cases.
• If I have money in my pocket, I pay my bills by using those. Now I normally withdraw some extra money from the bank than before. But it is worth than use my credit card.
• Pay extra amount of money – never pay minimum amount. Again I set automatic bill settlement from my bank for full amount of the credit card bill. You know now my balance is minus value. See my balance.

• Remove my payment protection insurance (PPI) – what a fake, I had a payment protection insurance since the very first day I started to use credit card, but the payment I pay for the insurance is useless. Therefore without thinking anymore I just asked to remove that protection. Now I pay my bill on time and use credit card very rarely, then why should I keep PPI anymore.
• Start to use my loyalty reward points. I never used my start points before and all are collected. Actually I did not know what to do with this reward points. Now I buy some products which is a gain to my pocket.
• Again I learnt one strategy which I explained in one of my previous hub. You can earn money instead of waste money on credit cards.

• How to earn money with credit card….good question, isn’t it?

Okay, I will explain how you can earn some money from credit card.

Now in my country interest rate is around 7% in fixed deposit. If you plan to buy a major item such as LCD TV or furniture, you can use my strategy. Now onwards I go for 0% instalment plan which you can pay for LCD TV in 12 months. If it is 1200 USD, then you have to pay 100 USD in each month for 12 months. Now buy the LCD TV by using credit card, you do not need to pay anything.

• 1^st month -- 1200 * 7/12/100 = 7
• 2^nd month -- 1107 * 7/12/100 = 6.45
• 3^rd month -- 1013.45 * 7/12/100 = 5.92
• .
• .
• 12^th month – 146.6342 *7/12/100 = 47.49 USD

See you earned 47.49 USD. But I know many countries interest rate is 1%~ 2%. Even you can earn around 12 USD.

Finally I think, these practical tips will help you to save your hardly earned money.