Thread: Save cash by tweaking your credit card payment habits

Ever felt like ripping a little cash off credit card companies for all the mess that they have created in your life? Well, here’s how you can do it. Making your credit card payment smartly can serve the dual purpose of receiving rewards from credit card providers as well as improving your credit score.

Set up a direct debit

Through a direct debit, a credit card company can take away a variable sum, which reduces your principal. If you ask your credit card company to deduct the full monthly payment, instead of taking a partial amount, you can save a substantial amount. Once you do this, your credit card transforms into a debit card, which benefits you on every transaction. Credit card companies charge the retailer certain amount of fees each time a customer uses a card. The proceeds turn into cashback rewards, which eventually go into your pocket.

In some cases, the credit card companies take away ‘the payment in full’ option, which restricts you to a certain payment every month. According to rules, they have to provide you with the full payment option when you sign up an account. So, if at all you come across such a case wherein the company has hidden the full payment information, you can mention it separately and then call up the company to confirm whether they have taken the due notice of the issue or no.

Moreover, you can derive additional benefits from credit card companies through stoozing or getting freebies. In stoozing, you can borrow credit from a credit card company that offers zero percent interest rate for a certain period of time (for ex. Six months or one year). Then, you can deposit this borrowed amount in a high interest rate account to reap the maximum benefits. Also, regularly using your credit card will entitle you for freebies such a electronics or free flight tickets.

Source: Money Matters