The surge in credit card usage has jam-packed our wallets with credit cards, which is a good thing. However, this development can also deprive us of making profits. For instance, when a customer intends to make a transaction with his/her credit cards, he/she just randomly take out a card from his wallet and makes the payment. As various providers award cashback offers on different credit cards, not choosing the appropriate credit card for the right transaction results in a customer’s loss.
What to do?
Store credit cards: If some particular store is your go-to shop, it’s ampler to have their credit card and make transactions through this card at the store. This will bequeath you with profit than using other credit cards. Moreover, few store credit cards also come with deferred-interest deals.
0% interest cards: Many cards charge 0% APR on new purchases. These cards can expedite you in saving a lot of money, especially during the offer period they offer 0% interest on purchases.
Coupling multiple cards:
Suppose a retailer offers a bonus on multiple cards, and you also carry a couple of cards. To avail maximum benefit, you could make half of the payment through one payment and the rest through another card. This astute strategy will also help you gain more rewards if you have brought a brand-new card. For instance, making a half payment through your new card can get you sign-up points, while making the rest payment through an older card will enhance your points.
Many credit cards come with cashback & travel rewards, and to get these rewards, a customer needs to do a lot of shopping at a particular time. Hey, be careful. Don’t jump into shopping for an item that you don’t need just for earning a bonus. Also, don’t try to buy an item that is not thrifty for you. This can result in a loss for you. For instance, if a customer’s card comes with a $3,000 balance with a 20% annual percentage rate, and he/she makes $150 monthly payments toward the debt, the interest would shoot up to $680.