Those who succumb to the temptation often pay off their debts much longer than they can enjoy their purchases. When used wisely, however, the credit card helps with budget planning, can bridge bottlenecks and even save money in the long term.
Credit card instead of overdraft facility
In the event of short-term shortages, you can get an interest-free loan with your credit card. Interest is only due if you do not repay the loan by the invoice date. Compared to the overdraft, you save about one euro interest per 100 borrowed dollars – per month!
Credit card instead of hire purchase
If you want to make a larger purchase, then it can be worth using the credit card instead of an installment purchase. To do this, you must fully balance your credit card the following month so that no interest accrues.
If your account is empty, you can simply pay for your purchases with the credit card and pay them off in the next month.
The important thing here is to incur a little less debt each month than in the previous month. This is how you gradually pay off your purchase without incurring any interest or fees!
Credit card instead of foreign bank fee
If you withdraw money with your credit card, you will usually immediately pay it. Sometimes it can even be worth it.
If there is no ATM where you can withdraw money free of charge, then the credit card interest is often lower than the foreign bank fees. These tend to amount to 2 to 4 dollars per withdrawal. You can save a lot of money at the end of the month!
Abroad you can often get free money with your credit card , where the EC card would incur fees.
Many credit card providers allow you to collect bonus points that can be exchanged for cheap train or plane tickets, lower insurance premiums or free tickets for concerts or amusement parks.
If you pay the normal household purchases with a credit card, you might save money on the next vacation.
As strange as it sounds, but whoever is in debt can save money. If you can point out that you have always paid off your credit card debt on time, then you are considered a reliable debtor at your bank. Interest on loans and mortgages will then be lower than if you had no credit history. Even a 1% difference in the interest rate can make a difference of thousands of dollars over a few years!
With all of this in mind, keep in mind that a credit card is not a way to make money. With clever handling, however, you can save some costs that you would otherwise incur.