10 Effective Tips to Save Money Using a Credit Card 

Choose the Right Credit Card that fits your needs

It is always a great idea to choose a card that aligns with your budget, your specific requirements and your spending behaviour. This process can be lengthy and requires inspecting minute details such as offers, vouchers, reward points and cashback which could be beneficial for your lifestyle. The idea is to find a card that provides good value for your shopping and purchases.

Examples: If you are a frequent traveller and most of your time is spent catching flights from one airport to another, then you might want to consider a card that gives you lounge access, discount on airport services and similar travel-related benefits. Adani One has partnered with ICICI Bank and launched the Adani One ICICI Bank credit card in this segment. There are two variants of this card namely, Platinum Card and Signature Card and can be easily touted as one of the best travel credit cards.

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Leverage Cashback and Reward Programs

Almost all credit cards have a cashback or reward program that can be redeemed to buy various gift cards or shop for various items. This is particularly helpful in getting good deals which is often considered as an expense.

For example:

• Some cards allow you to pay a portion of your credit card bill via these accumulated points or cashback.
• You can also get a gift voucher with these points.
• If you have a Cobrand credit card then the Reward Points can be used as a discount for shopping on the partner website or app.
• Also, you get the most out of their complimentary movie tickets, dining discounts and other such discounts.

Take Advantage of Introductory Offers

Credit Card companies roll out a lot of attractive introductory offers such as bonus points, free vouchers and coupons. Make sure you take the maximum benefit from these offers to save big on your expenses. Try to work on the timing of your purchase while the introductory offers are on.

Examples: Welcome offers and vouchers- You get welcome bonus points on many cards. Make sure you utilise these welcome points within a stipulated period for purchasing.

Optimize Your Credit Card Usage with Smart Spending

It is important to use your credit card prudently so that you don’t get caught in the loop of bill repayment. Make sure when you are making your purchase, the ratio of your spending should not exceed 25% of the total limit of the card so that you are able to pay back the amount easily.

Tips for Smart Spending:

• Pay the bill amount fully- Make sure not to incur any unwarranted interest on your payment amount and try to pay back your credit card balance amount in full. This is because this can cause a negation of any savings that can be made through Reward Points.
• Use Auto-Pay: This is the best way to avoid missing your payment date, which can cause a late fee or penalty.
• Track Your Spending: Never overspend than your pocket. If you don’t keep a tab on your spending, try to inculcate this habit of tracking down your expenses.

Utilize Credit Card Offers and Discounts

A lot of credit cards have exclusive offers and discounts such as lifestyle-related offers, movie tickets, hotel discounts, holiday packages, and travel vouchers to name a few. Make sure you utilise this amount to save money on your expenses and special occasions.

Take Advantage of Travel Perks and Benefits

People who travel regularly can find special benefits from travel-specific cards which can offer comfort and save money.

Travel Perks to Look For:

• Airport Lounge Access: Relax comfortably in the airport lounges away from the noise of the terminal, with good food and drink and plush seats while you wait for your flight.
• Hotel Discounts: Get discounts or complimentary upgrades at partner hotels via your credit card so you save on accommodation costs on your travel.
• Other services: Certain cards give you benefits like valet parking, porter service and meet and greet services to add an extra layer of comfort to your airport trips.

Earn and Redeem Points

Cardholders can also earn reward points or cash back if they shop or book flights, pay bills, book hotels, purchase electronics, and other services via their credit card which can be further used as a discount for a lot of services. For example- Adani One ICICI Signature or Platinum cardholders can earn Adani Reward Points on every purchase which can be utilised on Adani One.

Tips for Earning and Redeeming Travel Points:

• Book Flights and Hotels on Adani One: Use Adani One app or websites to book flights hotels, and airport services, as this earns you extra reward points.
• Redeem Points for High-Value Rewards: Redeem your reward points for discounts on Adani One on a host of travel-related services.

Avoid Fees or Charges

A credit card can turn into a liability if you are not careful enough with your financial dealings. You must know the hidden charges, fees and other such expenses beforehand.
Common Fees to Watch Out For:

• Annual Fees: A lot of credit cards may charge an annual fee which can be high or low depending upon the variant. However, ensure that the benefits and rewards that come with this card should outweigh this cost. If not, consider downgrading to a no-fee card. Also, this fee can be waived if you spend a particular amount on the card.
• Foreign Transaction Fees: If you travel, invest in a credit card which charges minimal or no foreign transaction fees. Otherwise, this also becomes a hidden expense.
• Late Payment Fees: It is the cardinal rule of any credit card. Always pay your bill on time so you can avoid late payment fees, which can turn steep due to accumulated interest.

Monitor Your Credit Card Statements

Financial wisdom to manage your bills and expenses always goes a long way to help you with your money. Therefore, always try to keep a watch on your credit card statement, the trends of your spending and any unwanted charges on your card.

Best Practices for Monitoring:

• Set Up Alerts: Your credit card's alert system can be used to receive alerts on your transactions. It helps you monitor your spending or any fraudulent activity.
• Review Statements Monthly: Always review your credit card bill statements each month to avoid discrepancies or charges. Report any issues to your credit card issuer immediately.

Maximize Benefits with Multiple Cards

It is also advisable to use multiple cards smartly so that you maximize your savings, rewards or benefits which come as a part of various card offers.

Tips for Managing Multiple Cards:

• Match Cards to Categories: Utilize a specific card that offers lucrative rewards or cashback for each spending category, such as using a travel card for booking flights and a cashback card for groceries.
• Keep Track of Payment Dates: With multiple cards, it’s important to keep track of payment due dates to avoid late fees.
• Monitor Your Credit Utilization: Ensure you maintain a low credit utilization rate across all your cards to protect your credit score.

Credit cards can be a powerful tool for saving money when used wisely. You can earn rewards, enjoy discounts, and lifestyle-related offers or simply manage your finances better by following these tips. With the right strategy, your credit card can become one of the best financial tools at your disposal.