5 Best Credit Card Hacks You Need to Know

Who doesn’t have a credit card these days? They’re convenient, (relatively) secure and easy to lug around in your wallet/card holder no matter where you go. They can also turn into one of your biggest sources of debt – unless you practice one or more of the following credit card hacks:

 

Have More Than One Card

 There are a couple of reasons why you should have at least two credit cards.

First, your finances will be more secure. If one of your cards gets lost/stolen/damaged, you’ll at least have the others to fall back on. Considering all the recent hoopla about credit card hacking, security is more important than ever. It’s no wonder that even the health industry is rapidly following suit of credit card companies in terms of implementing safer payment paradigms that provide more security.

Second, you’ll be able to maximize the benefits of each card. You can earn shopping-related rewards on one card, trip cancellation insurance on another card, and cash back points on yet another card. You can even transfer points from one card to another, so there’s no shortage of reasons to open a second – or third – account.

Evaluate Whether the Annual Fee Is Worth It

Of course, you have to check whether the benefits of each card outweigh the costs. For example, there’s no point to paying an annual fee for a card with “20 percent off travel” if you’re not a frequent traveler. Likewise, you won’t benefit much from a card that offers online shopping rewards, if you prefer to buy from that Wal-Mart across the block.

As much as possible, stick to no-fee cards. If you manage to find a “fee card” with great rewards, charge everything on that one card to maximize it.

 Swipe Your Cards Strategically

Speaking of “charging”, don’t just swipe your cards aimlessly. Have a plan for when, where and how much to charge on your cards to make the most of your rewards.

For example, let’s say you’re looking forward to a big trip six months from now. To enjoy the trip without burning a hole through your wallet, you need to rack up enough rewards points on the cards that offer travel discounts and the like. So you eat out with your family at a fine dining establishment, use your card regularly at the gas station, or buy that high-definition TV you’ve always wanted, in order to get those much-needed points.

 Check Your Card’s Spending Analysis Tool

Did you know you can check how much you’re charging to your card at any time, without a credit card statement? Log on to your card’s online banking platform, and look for a tool that breaks down your spending into different categories: groceries, travel, other merchandise, etc. Use this to evaluate your spending habits, create future budgets, and track your progress in holding down your credit card debt.

 Talk to Your Credit Card Issuer

Believe it or not, your issuer isn’t always out to milk your bank account for all it’s worth. They’re perfectly willing to let you catch a break – as long as you’re also perfectly willing to ask. If your card has an annual fee, ask to have it waived. If your due date is looming, and you don’t think you can make it, ask to have the due date moved. If you feel you’re eligible for additional rewards, inquire about them.

Of course, it’s easier to do all this if you have a good track record with your issuer. Still, regardless of your credit history, it won’t hurt to work up the courage to ask the question: “Is there anything else about my credit card I should know?”

Best Credit Card Hacks – Final Thoughts

When it comes to credit cards, it helps to think more strategically than most people. Read your contracts’ fine print, look up information and feedback online, and decide which credit cards serve your needs best.  It might take a bit more work than the usual swipe-and-swipe method, but if it means shaving off a few more dollars off your monthly debt, why not?