Yes, you can save money using your credit card. You might think that having a credit card is just a temptation waiting to explode, huh? Well, for the wise-spenders, you can actually make use of your credit card to earn perks, freebies and benefits. But first, you should scout for the best credit card out there that suits your preference or needs. For example, if you’re a jetsetter, you might want to consider a credit card that ties up with an airline company that lets you earn travel points like a BPI Worldperks. If you often gas up at Petron, then you might want to get the BPI-Petron credit card to earn rebates. Other credit card companies like Metrobank has an M card that specifically targets their female clients.
Obviously, I’m using BPI credit card for 5 years now, a loyal and very happy client. And throughout those 5 years, I learned some credit card smarts that I want to share to let you save money by using your credit card:
1. Be aware of the promos of your credit card that gives you freebies upon completing a minimum purchase transaction. At BPI, they have an ongoing promo that entitles you for a free Jollibee food item for everyPhp 1000 spent using your BPI credit card. I always use my card whenever I do the grocery, and after that, I head on to Jollibee to claim my freebie, instant merienda, FREE!
2. Ask your bank if you can waive your annual fee. If you’re on the first year of using your credit card, then it’s free. But on the second year, chances are, you will be charged with an annual fee. Try calling your bank if they can waive your annual fee for the second year. With BPI, I haven’t paid an annual fee for 5 years now, it’s also good to maintain a good credit standing with your bank. Aside from that, they can also consider waiving your annual fee if you have a savings account with the same bank. When all else fails, I’m gonna let you in on my little secret, shhhh. Some bank agents gave me a hard time when I asked for my annual fee reversal so what I told them was to cut my credit card, or I’m no longer interested since another bank is offering me a credit card with no annual fee… The agent would then put you on hold and voila, your annual fee will be waived.
3. Most credit cards offers loyalty points/bonus points whenever you use them. Once you accumulate a significant number of points, you can choose from a variety of gifts like travel benefits, appliances, and gift certificates offered. These are FREE as a reward for being a loyal client with the bank.
4. Do pay your credit card bill before its due. Once it gets past the due date, finance charges apply. Ugh, this is the most dreaded charges for a credit card user but your bank will be jumping with glee. Banks earn through these exorbitant finance charges so always remember your due date. One thing I love with BPI is that they have longer grace period, even if it’s past my due date, I can still pay my bill 3 or 5 days after without the finance charges on my next bill.
I hope these 3 simple tips on saving money through your credit card will be helpful. If you have other tips, feel free to share. Just keep in mind that what you can’t afford to buy in cash, then you can’t afford it at all even using your credit card. Do not be lured by 0% installment plans that you can pay for XX months, spend your money or your plastic money wisely.