Taking advantage of credit cards

We find it difficult to keep noting down our expenses on a daily basis. But we keep using our credit card without thinking twice. Start using your credit card statement as your expense statement and start tracking where you are spending your money. This will help you remove or reduce your unwanted expenses, which will lead you to savings. We should stop looking at credit card as an alternative to cash, but look at it as cash. But the unfortunate thing about credit card is you can keep spending and you would not know that you do not have the money to repay what you have spent.

Credit Card is anytime more convenient than cash. Another advantage would be to see the type of expenses and shift to a credit card which would give you savings. Almost all banks have tie-ups with companies and come up with co-branded cards. These cards come with a host of advantages, deals and saving opportunities. Some of the popular cobranded cards are for fuel, dining, travel, fashion, groceries and travel.

These cards are a win-win for both the customer and company. For you as the consumer, you get deals and for the company they get loyal customers. This might lead you to have two or three credit cards. Don’t go for more than three, you would start losing track and in case you default your credit rating would also go for a toss. Always look at your credit card very carefully and pay in full. Most of the credit card statements tell you the full amount and mention minimum payment due in bold. If you pay only the amount in bold, you will land you paying interest and other charges.

After a few months you will notice that you have started saving some money. Savings won’t just happen, start tracking your expenses and switch to the right cards.