May 15, 2023
Use these credit card tips to maximize your benefits.
Credit cards can be a convenient and rewarding way to pay for your expenses, but they can also lead to high-interest rates and fees if you’re not careful. These hacks will help you not just reduce your monthly balance, but also maximize the rewards your credit card may have.
1. Tips to Maximize the Benefits of Credit Cards
A Lending Tree survey found that most requests for lower interest rates and fees are granted. The same survey found that about 92% of the requests for late and annual fees were granted last year. If you have a balance and a good credit score, look for a zero-balance transfer card. Finally, credit cards often offer different rewards and cash-back based on purchase categories. Rotate your cards accordingly to amplify rewards.
2. Check Your Subscriptions to Reduce Your Monthly Balance
People belive they spend $86/month on subscriptions, but the total is actually closer to $219. Some apps, like Truebill, Trim, and Mint, can help track subscriptions. You can also go through your bank statements, track recurring charges, and write them down. Set reminders on your phone or Google Calendar when you sign up for free trials, and use the same payment method for all subscriptions to avoid losing sight of the costs.
3. Why Paying Only the Minimum May Be a Bad Idea Right Now
When you pay the minimum balance, often only a small fraction is going toward reducing your debt, and the rest goes toward interest. For example, if you have a $5,000 balance and a 16% APR, you’ll spend $800 in interest in a year. Experts say that by paying twice the minimum amount, the repayment period would be cut in half. Find the “Minimum Payment Warning” on your credit card bill to understand the snowball effect.
Don’t miss out on these tips, create a Clair account and explore the full potential of what you can do to improve your financial health.
