Some people find excuses to have their credit swiped every now and then. From a distance they may look spendthrifts, but actually they may not be. People who use credit cards frequently are actually smart and they have learned that spending money through credit cards in reality can save them money.
Here, we give you 8 major ways your credit card can help you save money:
- Reward Points: Whenever a credit card holder spends a certain amount of money, points are added to a pool. Value of a point varies from bank to bank and card to card. Let’s suppose if every Rs. 100 spent gives you 10 points very soon when you visit designated outlet you may pick a crate of soft drink, a discounted meal or a good dress for free or on a discounted price while redeeming your accumulated points.
- Shopping: Several banks have negotiated with their merchant vendors to give discounts to their customers when they make a payment through credit card. The discounts can go from 5% to 40% depending on the nature of vendor, the Bank and the card grade (silver, gold or platinum). You just need to be aware whether that particular outlet has arrangements with that bank. For an example, Khaadi or Meat One may not be offering a discount on Faysal Bank credit cards but the discount offer is valid for Meezan Bank cards.
- Refuelling and Motor Oils: Car maintenance is getting costlier every other month, engine oil alone costs several hundreds of rupees. Several banks have negotiated deals with PSO, Shell and Caltex to offer discount when you buy motor engine oil. Since the cost of motor oil is extremely high even a slight percentage looks big. It is indeed a great saving. Further, from time to time, banks also offer schemes on petrol, this too is a great saving for a car owner.
- Dining Out: Almost all famous and fine dine restaurants offer discounts on credit cards. This may however depend on their understanding with a certain number of banks. So the next time you plan to dine out, just make sure that your preferred restaurant choice honors your (bank) credit card, because if it does; one of your friend may dine in for free! Bigger the value of the card, the bigger the benefits.
- Travelling: One deserves the best even when they travel. Several banks have made arrangements with domestic and international airports by which the card holder can avail privileges of CIP, VIP and business class lounges. Refreshments and food are either free or discounted which saves a lot of money. Being valued and treated well is another perk.
Quite a few of the credit cards go miles ahead assisting their customers for exclusive and premium privileges such as airport pick and drop convenience, car rentals, meet and assist services etc. Special packages are also available for travel and hotel bookings and tourism on gold and platinum cards.
- Insurance of cash: Drawing money from an ATM can always be risky. Several banks have in built features of protecting the card holder’s money by insuring that money. The amount of insurance however varies from bank to bank and the type of card. In case a person is robbed of that money, there is no reason to be depressed as that money can be covered through an insurance claim. This facility can also be availed while travelling.
- Airline Reward Points: Few banks have offered a unique benefit to their card holders. When a person buys an airline ticket through a credit card, the accumulated points can be redeemed at this point in two ways; pay entire amount through the reward points if you have the required number or redeem as points you have and pay the balance through your card.
- Cash Back Advantage: Your credit card can save you loads of money in the shape of cash back. For example if you have made a purchase of Rs. 2000, a certain amount or a percentage; in this case let’s assume Rs. 50 will be given back to you as a cash back reward. So next time when you visit this merchant and make a purchase you will receive a bill after deducting Rs. 50 which was your cash back reward.
In conclusion, we can advise that be smart, spend wisely and make good use of your credit card. For further in depth review, one can choose between some of the best credit cards that offer various discounts and methods to save enormously and for that an online comparison tool could be used at KarloCompare.com.pk.