Top 10 Credit Card Hacks: Use Them Wisely

Top 10 Credit Card Hacks: Use Them Wisely

This article explores ten valuable tips to maximize your credit card benefits while avoiding common pitfalls. Remember, responsible credit card use is crucial!

1. Check Eligibility Before Applying:

  • Applying for multiple cards can hurt your credit score due to hard inquiries.
  • Use a soft-check eligibility tool to see if you’re likely to be approved without affecting your score.

2. Find Extra Bonuses:

  • Look for comparison sites offering bonus rewards for applying through them.
  • Consider referral programs where both you and a friend can earn rewards.
Top 10 Credit Card Hacks: Use Them Wisely

3. Maximize welcome bonuses:

  • Apply strategically when cards offer boosted welcome bonuses.
  • Consider applying for multiple cards with different issuers to space out bonuses (check cardholder eligibility rules).

Also: RBC Cash Back MasterCard 2024: pros and cons

4. Utilize Supplementary Cards:

  • Get help reaching high spending thresholds for welcome bonuses by adding a supplementary cardholder who you trust will spend responsibly.

5. Leverage Section 75, Consumer Protection:

  • For purchases between £100 and £30,000, credit card companies share liability with retailers if something goes wrong.
  • Even a small amount spent on the credit card qualifies (e.g., £1 with the rest paid by debit card).

6. Double Dip for Rewards:

  • Earn cashback or points on your credit card purchases.
  • Combine those rewards with cashback sites like Quidco or TopCashback.
  • Link your card to airtime rewards programs for additional cashback at specific retailers.
  • Use PayPal as a workaround to earn points on purchases from stores that don’t accept American Express directly (but remember, this might break Section 75 protection).
Top 10 Credit Card Hacks: Use Them Wisely

7. Explore Money Transfer Credit Cards (Use with Caution):

  • Consider using a money transfer card with a 0% introductory period to pay off high-interest debt.
  • Transfer the balance to the new card and pay it off within the introductory period to avoid high fees.
  • Simultaneously, put the saved money in a high-interest savings account to potentially earn more than the transfer fee.

8. Automate Payments to Avoid Interest:

  • Set up a direct debit to automatically pay your credit card balance in full each month to avoid missing payments and incurring interest charges.
  • Consider using separate accounts for spending and credit card payments for better budgeting.

9. Negotiate retention offers before canceling:

  • If you have a card with an annual fee you no longer want, contact the issuer to see if they’ll waive the fee or offer bonus points to keep you as a customer.
  • Explore prorated fee refunds (especially with American Express before August 1st, 2024) if you cancel a card mid-year.

10. Maintain Your Oldest Credit Card for a Better Credit Score:

  • The length of your credit history significantly impacts your credit score.
  • If you have an old credit card with no fees, consider downgrading it to a free version instead of cancelling it completely.

Remember: These hacks are for responsible credit card users who pay their balances in full each month. Don’t spend more than you can afford to chase rewards.

Also: 2024 Tangerine Money-Back Credit Card review

Conclusion

By utilizing these ten credit card hacks strategically, you can unlock a world of rewards and benefits while keeping your finances in check. Remember, responsible credit card use is key. Always pay your balance in full each month to avoid interest charges and prioritize cards that align with your spending habits. With a little planning and these helpful tips, your credit cards can become powerful tools to maximize your purchasing power and earn valuable rewards.

Related FAQ’s

Is it safe to use credit cards?

Credit cards can be safe and rewarding tools if used responsibly. This means paying your balance in full each month to avoid interest charges.

Will these hacks hurt my credit score?

Some hacks, like checking eligibility before applying, can actually help your score by avoiding unnecessary hard inquiries. However, using a money transfer card irresponsibly can hurt your score.

How do I check eligibility for a credit card?

Many credit card issuers and comparison websites offer soft inquiry eligibility checks. These won’t affect your credit score.

Can I get multiple welcome bonuses?

Yes, but there are strategies involved. Consider different card issuers and eligibility rules to space out applications.

What are supplementary cards good for?

Supplementary cards can help you reach high spending thresholds for welcome bonuses, but choose someone you trust to spend responsibly.

Can I combine credit card rewards with other programs?

Absolutely! Look for cashback sites, airtime rewards programs, and loyalty programs to stack your rewards.

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