Ways a credit card can save you money

Credit cards might be one of the most misunderstood financial products. Many think they are equivalent to debt. However, when used correctly, credit cards can help you save money. With most banks offering the option of a credit card application online, getting your own credit card is now easier than ever.

Here are some of the ways you can use your credit cards to your advantage and save money in the process:

Earn interest on positive balance

Some cards offer additional interest every year if you make prompt repayments and have a positive balance in your bank accounts at end of the year. This will help you save towards your long-term goals without any investment risk. One such card is the African Bank Gold or Silver Credit Card, where you can earn 3% interest per year on a positive balance. Click here to open a new bank account online today.

Build a good credit profile

The key to saving money using a credit card is to pay back the full amount promptly. With an African Bank credit card, if you settle your outstanding balance by the due date you will pay no interest at all. To benefit from the good interest rates from a positive credit card balance, think of your credit card as a mode of saving and not as a loan. By doing so, you will also build up your credit profile and enjoy favourable terms in future loan applications, such as home loans, car loans etc. These favourable terms can include a lower interest rate.

Shop online

More and more online shops offer great discounts on online purchases. Having a credit card can also help us save money when we shop online. Use African Bank’s online credit card to make secure payments when shopping through the Internet. Below are a few tips to help you save money when shopping online:

  • Compare prices before clicking “check out”. Online shopping makes it easier than ever to shop for the best prices – no more driving from shop to shop! However, when comparing prices, remember to factor in the cost of delivery.
  • Be smart about delivery charges. Many websites offer free delivery after you spend a certain amount. Compare how much you would have to spend to get this free option with the actual cost of delivery and make the smart choice.
  • Subscribe to your favourite online shopping site’s email newsletter and be sure to do your purchasing when they have a sale. This is especially important when it comes to shopping for Christmas gifts. Don’t wait until the Christmas madness, with its inflated prices, to stock up on gifts.
  • Abandon your basket. This is a sneaky but worthwhile trick! Fill up your online shopping baskets with the items you want, then exit the site before making your purchase. Websites often track your online behaviour, so they know what’s working on their site and what isn’t working. Make this work in your favour – you will see once you’ve closed the website without purchasing that, over the next few days, ads for that shop and even those products will begin popping up while you’re browsing the Internet or checking out Facebook. You might see an ad for your product, selling it slightly cheaper at the original site or possibly even a completely different site. This requires some patience, but it might pay off in the long run!

 

If you are disciplined with your spending habits and make prompt payments to your credit card, you will discover that a credit card can be a useful tool in your financial arsenal!

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