Get the best out of your credit card while keep away from credit card debt
Check out deals on co-branded cards :-
I have a co-branded Citibank and Emirates Airlines card. Whenever I spend an amount equal to $1, I get one skyward mile (Emirates Frequent Flyer) credited to my account.
By using the card for my regular household expenses, I accumulated sufficient points over three years to get me three return tickets to my Home Country. If I had to pay for this, it would have set me back by $1500 at least.
In addition, I have the option to sell these tickets to anybody.
Isn't that a great way to make my credit card earn (not work) for me?
Use it as an emergency tool:-
I used to own a card as a status symbol but soon realized its value.
Around eight months ago, my flat mate met with a bike accident at Mid Night and was badly injured.
Fortunately, the person riding with him was not hurt too badly. He managed to take him to the nearest hospital and called me.
When I reached hospital, I was told my flat mate's has serious fractured and he had to be treated immediately. None of us had the money for the hospital deposit.
I used my card to pay for all the hospital expenses for the next three days, by which time his parents arrived from his home town.
Immediate help by CC on time save his life. After this incident, I chose not to live without a card.
Use the reward points to get gifts:-
I have been using a Standard Chartered MasterCard for the past 10 years.
Till date, I accumulated points that enabled me to buy a Cell Phone, a musical instrument and a pair of sneakers.
Avoid tapping your savings:-
I work far away form my family. I used to keep a tidy amount in my savings account to be able to buy an air ticket in case of a family emergency.
Now, I put all my money in a fixed deposit. If I have to rush back, I will buy my tickets on my credit card and pay the bill when the statement is given to me.
By then, I would either have my salary credited to my account or I would just have to break a portion of the fixed deposit (not the entire amount).
This way, I do not touch my savings unnecessarily and the money earns a fixed deposit rate of interest (as opposed to a savings account rate of interest). I also earn reward points on my card by using it for Air Tickets.
Ditto when I travel on office work. I make all payments on my card, produce the bills at my office, get reimbursed and put the money in my bank. When the statement comes, I make the payment.
This way, You don't have the bother of using my own money. Instead, You earn reward points without spending your own money.
Take what you get:-
I deliberately own a number of credit cards. The advantage is that each credit cards offer has its own promotional and schemes which I use to the hilt.
For instance, one card will get me a discount at a restaurant while another, a discount at a book store, as well as a music cassette and a chance to win in a lucky draw. All at no additional cost to me.
Over the years, I have been accumulating points on my Credit card. I get one point for every $ spent and get a gift when I accumulate a certain number.
I used the co-branded cards to fill up my car at no extra cost.
Note :- Some cards levy a surcharge if you use them at Gas, check it first before use.
Once, I needed to buy air tickets for my parents. I used the credit card and did not have to bother about payment till the bill came. Neither did I have to touch my savings till then. The card came in most handy when it comes with facilities like add-on card.