You have probably thought of only spending money through your credit card. How about saving some money? Here are some of the secrets which you might not be aware of:
- Raise your Credit Limit
It is hard to convince credit providers to increase your credit limit these days, due to the recession. But Ken Clark, a certified financial planner, has got a smarter way to work it out. According to him, you can ask it in conjunction with a larger purchase. Tell them you want to raise your credit limit because you want to buy a new car or repair your house and you have it. However, the only criterion is to have a decent past record i.e. not missed many payments.
- Skip a payment
Yes, skip a payment. This is one of the benefits you enjoy if you are a customer in good standing. Sometimes, it gets difficult even to pay the minimum amount of your credit. But that’s OK; you can pay it the following month. You just have to inform your credit card provider about your delay in payment in advance and they are likely to waive off your late fee. Isn’t it great? Yeah, but I said ‘likely’, not ‘definitely’. So, it all depends on your past payment records and your relation with the credit provider.
- Late Fee? Waive it off
Late fees are waived off if:
– you try paying online, but it doesn’t go through or
– you failed to receive an invoice from the provider
Use any of these two reasons and there are very good chances that the fee will be waived off, provided you hold a good past payment history. Even if it’s your fault, don’t worry. You may still get it waived off from the next bill. However, this benefit will help you just once, so use it when you really need it.
- Lower your Interest rate
This is the easiest among all. Find a credit card provider which asks for a lower interest rate. Call up your credit card provider and inform them about what you have got. Tell them that you really liked their service but you have got a better option. They cannot afford to lose you as a customer. Even they are hit by recession. So, chances are pretty high that they will come down to the competitor’s interest rate or even lower. Try it.
- Transfer funds in your bank account for free
When you transfer your credit card balance to your bank account, you are normally charged a fee of $50 to $75. But tell them you are going to make a big purchase or Money Market Mutual Fund, and you will receive a free transfer opportunity. You can then receive a good amount of interest on your saving account balance. Great, isn’t it? However, make sure that you repay the card amount before the grace period ends, or you have to pay more interest than you received.
- Remove surcharges charged by merchants
It is illegal for any merchant to charge additional fee for your credit card transactions, with the exception of government offices and schools. If you see any additional fee charged by merchant, ask them to waive off the fee. If your invoice still displays the merchant fee, report the incident directly to your credit card company. As per merchant Abuse Policy, you merchant fee will be waived off.credit card balance transfer.
- Increased warranty on new purchases
Generally, all stores offer an extended warranty on purchase of new machines like a laptop or a television. But why to but this warranty when you can avail this for free? Yes. If you use a major credit card to purchases these products, you provider will directly match the warranty up to a year.
- Free rental car insurance
If you are worried about the damage of your rental car, ask your card provider to pay for the insurance. However, not all companies pay for it. So, call up your credit card provider to check whether they do and whether you are eligible for it.
- Get discount on hotel stays and meals
Many major credit card providers offer a discounted meal and stay in almost all hotels and restaurants in United States. These offers are generally mentioned in our welcome packet, but we hardly notice it. Also you can find relevant information on the new and existing offers in the credit card issuer’s website. Why spend more?
- Best Value Guarantee – Get a refund
Best value Guarantee (BVG) is nothing but a partial refund of the amount you pay to purchase a new item through your card. There are very card providers which offer such benefit and on very few items. American Express Gold offers up to $250 refund on selected items. Don’t miss it if you are one of those lucky people having an AmEx card.
Aren’t these wonderful ways to save some money on your credit card?