Have you ever thought why banks issue debit and credit cards? Most of the people are curious about the benefits of these cards, but they don’t know that the banks make money from these cards. If you are also a victim of credit card fraud, then you must be thinking how you can save money.
Many companies offer debit and credit cards to their customers. These cards come with different benefits. A common benefit of these cards is that they provide easy access to cash. Customers can pay for their expenses with these cards. This makes it easier for them to avoid paying huge amounts of interest. However, if you think that you can save money using these cards, then you might be wrong. Some people end up spending more money than they normally would have spent.
This is because they are buying things with their credit cards. You might not be aware of this, but when you use a debit card, the transaction is immediate and irreversible. Therefore, you can’t cancel the transaction and ask for a refund.
Most of the people have a credit card, but they don’t use them properly and spend the money that was earned by hard work and saved in their pockets. There are lots of opportunities to save money when it comes to debit and credit cards.
Here are some tips that will help you to save money when buying credit/debit card.
Get your credit card approved
This is the most important tip that you need to follow. If you don’t have a credit card, then you must try to get it approved first. Banks are now a bit skeptical about people who don’t have a credit card, so you must try to get one.
There are many ways to apply for a credit card. Most credit cards are available online. You can also apply for a credit card using your phone. Credit cards offer many benefits such as cash back, rewards, and convenience. The best thing about a credit card is that you will be able to make purchases easily. All you have to do is swipe your card when you make a purchase. Some cards come with many benefits, and others come with fewer benefits. The more benefits that you have, the better.
You should ask your bank for a card that offers rewards and cash back. Many people think that a credit card with rewards and cash back is too expensive. However, you should know that there are many different rewards programs.
Pay your bill on time
Banks are not the only ones who will charge interest on your bills, but they are the first to charge interest on the unpaid balance. If you don’t pay your bill on time, then it will start charging you interest. So, it is better to pay your bill on time.
Paying your bills on time is important. Sometimes people forget to pay their bills, and sometimes they have money problems. They don’t know how to handle their money, so they make mistakes. They might owe too much money to banks, and they are afraid that they will lose their jobs if they don’t pay on time.
This is the reason why they might pay late. If you have trouble paying your bills, you should try to pay them on time. You might also get a late fee. This could happen if the bank sends you a reminder to pay your bill. You should check the date on your bill before you decide to pay it.
Use only the cash you earn
If you don’t have a bank account, then it is the best thing that you must open one and use only the cash you earn. It will also be beneficial for you as you will get a savings account in your name.
If you want to save money, then you should first of all, open a savings account in your name. This is a great way to make a savings deposit for your future. When you get a savings account, you can also get a checking account as well. You should try to keep all your expenses separate from your savings. When you earn money, you should deposit it in your savings account. It is also important to look into the safety of the account before you open it. There are some banks that offer insurance against robbery.
You can also invest your money in stocks or bonds. Investing in bonds is a good way to make sure that your money doesn’t lose value.
Check your credit rating
Banks usually check your credit rating, and if it is less than 700, then you can apply for a credit card. So, it is better to have a good credit score as it will help you to get a lower rate of interest.
One way to increase your credit rating is to pay your bills on time. Do not spend more money than you make. Always pay your bills before the due date and try not to charge too much on your card. Also, try to pay your bill on time.
This will help you to build your credit rating. Another thing you can do to get a better credit rating is to pay all of your bills in full each month. If you don’t do this, then you may get a late fee, which will reduce your credit rating. If you don’t want to pay any late fees, then you should pay your bill as soon as it comes.
Conclusion:
If you are wondering how to save money when buying a bank debit/credit card, then the above mentioned tips will surely help you. If you have any other tip that will help you, then you can share it with us in the comment section below.
