This fantastic section documents ways to save money with credit cards, after all most people in the UK will have some form of credit. Why not make that little bit of ‘magic plastic’ in your pocket work to your advantage?
Credit cards have been a ‘popular’ method of finance for decades, their used by millions of people daily, from small purchases such as weekly shopping to buying clothes, holidays and even large items such as new cars!
Here’s some great tips and tricks for you to think about!
Transfer a Balance to a LOWER Interest Rate Credit Card – Balance transfer cards are quite popular throughout England, they can be great for people who need to transfer a balance on a high-interest card to a lower amount.
Depending on the amount, the card provider and the circumstances you can sometimes save hundreds of pounds by simply ‘switching’. Equally it can be a great idea for some to consider 0% balance transfer offers, this means you can take advantage and avoid paying interest for a longer period of time saving you money.
As with most things in life, you need to be aware of all documentation, terms and conditions and in some cases any charges which may apply for switching to another provider. Generally, if a fee is applied, this is usually ‘lower’ than the higher interest rate on your former card.
Pay with a Cash Back Credit Card – Using a cashback card daily is becoming more common throughout the British Isles. You can use a credit card on pretty much everything these days, this means you can earn money while you shop! Find a card provider which offers a good incentive for your purchasing power, some providers may offer up to 1% rewards.
For example, let’s say you spend £1,000 on a credit card each month, if you pay this balance off in full at the end of the month, you could earn £10 a month in free money through the cashback initiative. While this doesn’t sound a lot, it equals £120 a year of free money, that can easily pay for a car MOT or go towards road tax.
Use a 0% Credit Card for Big Transactions – You’ll find a lot of providers in England offer 0% Credit Cards for a limited time. Sometimes this is an introductory offer for a month, while other times it can be as long as 18 months! It really does depend on the bank or issuer.
Depending on the length of your interest-free period, it can be a good idea to think about purchasing a high-ticket item. This could be a new piece of furniture, such as a bed, sofa or dining table, a medical procedure or a holiday on your new interest-free card. By using the 0% APR, you can easily ‘break up’ the purchase into multiple payments and save money on the interest while you’re at it.
Apply for a Credit Card with a Signup Bonus – If you’re thinking about applying for a card, why not earn a ‘kickback’ and save money? Just by signing up to certain providers you can earn ‘bonuses’, these may include things such as free hotel stays, points for airline tickets, free store gift cards and more. Typically, to quality for a signup bonus, you’ll have to spend a ‘certain amount’ on the credit card within the first few months. After you’ve completed this obligation you’ll receive the agreed bonus.
Save on Concert Tickets and Music Festivals – Increasingly card providers are offering perks such as early access to presale tickets for cardmembers, in some cases there’s even discounts on tickets too! This means you can get your hands on those popular gigs and save money at the same time!
Earn Holidays or Air Miles – Some people love ‘reward credit cards’, these are designed to offer returns for frequent high spenders. The reward will vary depending on the card issuer, however some will offer things such as Holidays, Free Flights, Air Miles, Weekend Getaways, Store Credit and more!
Extended Warranty – Buying using your credit card can sometimes be beneficial for offering extended warranty periods. This usually applies on expensive items such as electronics. The standard manufacturer period may only be 12 months, however when purchasing using a credit card you may get much longer. As all providers are different, please read all documentation to see how this may apply to your situation.
Learn more about Price Adjustments – Everyone hates the fact of price deductions only a few days after purchasing a product. Well check your providers documentation as the credit card company may refund you the price difference. This is ‘generally’ applicable if you have a ‘price protection policy’ included as standard. Typically, to claim you need to complete a form and provide a valid receipt showing your purchase.
Car Rental Insurance – If you travel around a lot and find yourself renting a car, did you know your credit card provider may have car rental insurance included at a discounted rate? While this may not be applicable to all providers, some offer lower prices if you decline the coverage offered by the rental car company and pay on your credit card instead. For example, let’s say the rental company insurance price is £150 for a week, your card provider may only charge £10 a day, thus saving £100 on a five-day week.
Pay more than the Minimum – If your budget allows you should always ‘try’ to pay more than the minimum monthly payment. Remember at the end of each month you’ll have interest added to your balance (if you’re not in an interest free period). As the months tick on by this interest amount can easily begin to mount up. You’ll save more money in the long run by paying as much money off each month as you can afford.
Of course, there can be more ways to save money not listed here, for the latest deals and offers check out our Credit Card provider page for the latest information. This is updated on a daily basis!