Chris O'Shea
Many of us use a credit card in our day-to-day lives. Some carry a balance from month to month, and others pay off their cards in full. But there are a lot of other benefits and ways to use your credit card to your benefit. Here are some ways to switch things up and maximize the benefits of credit cards.
Use a Transfer
If you carry a balance or struggle with credit card debt, try using a balance transfer credit card to get a handle on it. These cards allow you to transfer your debt and pay it down, in some cases, avoiding interest costs. To take advantage of a lower rate:
- Look for a balance transfer card that offers a 0% introductory APR for around 20 months or so.
- You also want to check the balance transfer fee, as some can be around five percent.
- Then pay down the balance during that intro period and you won’t be dealing with any interest costs.
Take Advantage of Benefits
Make sure that your credit card helps you. If your card’s rewards don’t match your spending, it’s time to switch things up. When searching for a new card with benefits, research its reward system.
- How do the rewards match up with your spending from the past year?
- Does your current card offer airline rewards?
- If you spent a lot on dining out, find a card that offers lots of points for that category.
- If you plan to travel in the upcoming year, you might want to find a reward system that has benefits linked to travel.
Check Extras
A lot of the time, cards come with benefits that you might not even know about.
- Some cards offer free streaming subscriptions.
- Some offer benefits for joining a gym.
- Certain cards may even pay you cash back for spending.
Squeeze every good thing out of your cards so you’re getting the most bang for your buck.
Do One Thing: Read the fine print on your credit cards so you’re taking full advantage of every offer.
Jean Chatzky
