Hidden Perks & Strategic Payments: 7 Credit Card Tips to Boost Savings & Credit
WASHINGTON, D.C. – Consumers are leaving money on the table and potentially hindering their credit scores by overlooking simple, yet powerful, credit card strategies. As household debt continues to rise, maximizing the benefits of credit cards - and minimizing their costs – is more critical than ever. A new analysis reveals seven often-overlooked tips that can save users hundreds, even thousands, of dollars annually while concurrently improving their financial health.
Thes strategies range from leveraging built-in travel protections to optimizing payment schedules for credit score gains. While many cardholders focus on rewards points, these lesser-known tactics offer substantial financial advantages, especially in a climate of increasing travel expenses and economic uncertainty. Ignoring these tips means missing out on potential savings and a stronger credit profile – a key factor in securing loans, mortgages, and even rental agreements.
1. Maximize Travel Protections: Many travel credit cards offer built-in trip protections and insurance coverage when purchases are made with the card. These benefits can cover lost luggage, trip cancellations, or even emergency medical expenses, potentially saving travelers significant sums.
2. Avoid Foreign Transaction Fees: When traveling internationally, using a card with foreign transaction fees can add up to a 3% surcharge on every purchase. Opting for a card that waives these fees can result in substantial savings, especially on larger trips.
3. Understand Your Card’s Benefits: Beyond rewards, many cards offer perks like extended warranties on purchases, price protection (refunds for price drops), and even rental car insurance. Taking the time to understand these benefits can unlock significant value.
4. Take Advantage of Sign-Up Bonuses: New credit card sign-up bonuses can provide a rapid influx of rewards points or cash back. Strategically applying for cards with bonuses aligned with spending habits can be a lucrative move.
5. Utilize Purchase Erasure: Some cards allow you to ”erase” purchases made with points, effectively turning rewards into statement credits for anything, not just travel. This offers versatility and maximizes reward value.
6. Optimize Payment Timing for Credit score: Making two payments each month, rather than one large payment, can positively impact credit scores. By reducing the reported credit utilization ratio mid-cycle, cardholders can demonstrate responsible credit management.
7. Regularly Review Statements for Errors: Carefully reviewing credit card statements for unauthorized charges or errors is crucial. Promptly disputing any discrepancies can prevent fraudulent activity and maintain accurate credit reporting.
By implementing these strategies, consumers can transform their credit cards from simple spending tools into powerful financial assets.
