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When being asked why you use your credit card, would your answer be “to save money”? We are assuming quite unlikely. Most people usually associate credit cards to debt, interest and fees, but they sometimes forget that credit cards could also provide the ability to help you save money.

 

Whether you want to clear your debt, save on fees or cut down on interest costs, we narrow down the different types of credit cards currently in the market and their features that could help you save, even while you’re spending.

 

Signup bonuses & reward schemes

Signup bonuses can range from cashback offers to bonus reward points you could use for airline tickets. This type of credit card usually comes with a few requirements you need to meet, such as spend a certain amount within the first few months of using the credit card to be eligible to receive the bonus.

 

Take advantage of 0% p.a. on purchases

Whether you’re planning a family vacation or adding new furniture to the house, using a credit card with a 0% p.a. purchase rate on big purchases can help you break up the purchase into multiple payments and save money on interest. Remember to look out for the standard purchase rate following the promotional period.

 

Pay off your debt with a 0% p.a. balance transfer

If you’re currently carrying a balance on a credit card with a high interest rate, you could potentially save money by transferring that balance to a credit card with a lower interest rate. Remember to look out for the balance transfer fee applied, the interest rate that the balance reverts to at the end of the promotional period, and to make sure to close off the existing credit card once the balance is transferred over to the new one.

 

$0 ongoing annual fee for the rainy days

If you’re an infrequent user of your credit card and only use it in case of an emergency, then a no annual fee credit card might be a more affordable option to provide peace of mind that credit is there if needed but there won’t be any fees for keeping the account open.

 

 

Choosing a credit card is not an easy task, as the right card for you will be dependent on what you need from the card and how you’re planning to use it. Below are some helpful tips and articles to help you save further on your credit card costs:

 

Re-evaluate your spending habits and the use of your credit card

Read more on the 4 signs you should switch your credit card.

 

Negotiate with your credit provider

If you are not considering changing your current credit card, there are other ways you can try to negotiate for a lower credit card interest rate and fees.

 

Research & compare

When looking at which card is the right one for you, consider how you are going to use the credit card and how you plan to pay off the balance each month. Always read the T&Cs before you apply so won’t get caught out by the fine print.

 

Be a responsible borrower

Only borrow what you can afford and pay your credit card balance in full every month. Remember, each time you apply for a credit card, the lender can do a credit check on you. This will show up as an enquiry on your file and can impact your credit score. So, choose carefully and only apply when you need credit. Read more on questions to ask yourself before you borrow.