From the News: Debit cards return to the glory days as consumers deal with debt. Can you still use credit cards to your advantage?
With Covid-19 dragging on for so long, it is not surprising that, according to this article, more and more consumers in Singapore are “increasingly opting for debit cards as the pandemic has made them more cautious about booking credit cards”. Fault”.
While debit cards are certainly handy for staying on a tight budget since you can only spend the money you have, there are ways to get the most out of your credit cards while staying on budget. Do you need more persuasiveness?
First, take a look at the tried and tested tips we’ve put together below.
How to use credit cards cleverly
1. Set a low credit limit
While it is common knowledge that banks are happy to give their customers temporary or permanent credit limit increases (depending on the individual case), many people are unaware that they can request that they set lower credit limits on their credit cards.
It’s very simple: a lower credit limit limits your purchasing power. Setting a lower credit limit is an easy hack to make sure you aren’t over-spending.
For example, if you tend to spend around S $ 600 on groceries, restaurants, and transportation, you should adjust your credit limit to match the average amount you spend each month.
How to reduce your credit limit:
1. Contact your card issuing bank online, by phone or at your branch
2. Request to reduce the credit limit
3. Your credit limit should be updated within 24 to 48 hours
2. Use credit cards only for the bare essentials
To avoid unnecessary spending and debt, reserve your credit cards only for the essentials like groceries, gasoline, food, food deliveries, and grab / gojek trips, no matter how tempting or convenient it may be to swipe your credit card at any given opportunity.
Some credit cards are also great for paying bills and insurance premiums.
ALSO READ: 3 Best Credit Cards For Gasoline Discounts At Esso, Shell, SPC & Caltex (2021)
3. Double-dip rewards
Did you know that platforms like Shopback, Kris + and Fave can be used to earn rewards for things you’ve already spent on?
That’s the magic of double diving. You will earn rewards for your credit card spending as usual and receive additional rewards by clicking through these platforms online or via mobile apps. Say hello to more cashback and miles!
With BNPL’s massive surge in popularity in Singapore, rest assured that big BNPL players are often running promotions to get more customers, even though BNPL users can already earn credit card rewards for their BNPL rates.
New to the world of BNPL? Here are handy BNPL tips your wallet will thank you for.
4. GIRO your bills
Setting up automatic billing is the first thing you can do to avoid paying credit card bills, late payment fees, and high interest charges.
While you must first make sure your bank account has adequate funds, you never have to deal with missed or late payments when you GIRO your credit card bills, phone bills, utility bills, utility bills, and more.
It is high time to say goodbye to the tedious task of regularly tracking all of your invoices’ due dates.
Credit cards are a great tool when used properly
Credit cards can be worthwhile if you make an effort to use them wisely to your advantage. This means keeping track of your expenses, not shifting balances, and being disciplined overall.
Not only can you collect cashback, miles or reward points – depending on the card type selected – you can also take advantage of the many food and lifestyle promotions that banks offer their customers.
In addition, certain credit cards can help you get more interest on your savings on high-yield savings accounts such as the DBS Multiplier or UOB One.
This article was first published on SingSaver.com.sg.
