Saving money with credit cards

In the past, I’ve written a bit about cash rewards and reward programs. Today, Mr Credit Card is going to fill in and highlight some other money saving tips using credit cards

First, let me start off by saying that these tips are really intended for folks who pay their bills in full every month. If you are the sort who gets tempted to overspend and carry a balance, then it is best to refrain from using a credit card.

Cash back cards

Most generic cash rewards from credit cards offer 1% cash rebates. That means you get back 1% for every dollar that you spend on the card.

For folks who are not remotely interested in earning rewards, they should at minimum get such cards. At least you get a little money back every year. The better ones offer higher rebates on things like gasoline and supermarket shopping.

I have mentioned in the past on my blog and elsewhere that using cash back cards together with store coupons and manufacturers’ coupons are the best way to save money at groceries. But these days, the best cash back credit cards also have online shopping portals that allow you to earn extra rebates when you shop at online partner stores via their shopping portal.

Shopping portals

So exactly what are credit card online shopping portals? Think of them as aggregators, like Mr. Rebates for example.

Many cards offer this feature these days. This is how it works:

• The card company partners with online merchants.
• The merchants offer your card company a commission on sales coming from its site.
• Your card company passes along some of that money.

Just make sure you are logged in and that you use your credit card. The purchase is tracked, and everyone is happy. These rebates can go as high as 20%.

The site that you go to is exactly the same site as you would land up with you went to it via google or your web browser. It’s just that when you use the portal, your purchases are tracked.

These portals have a lot of merchants and if you are diligent about it, you can really save a lot of money. One example is the Chase Freedom. You can read my Chase Freedom review where I actually take screen shots of these partners just to get an idea of such portals.

Airline credit cards

For those who fly a lot, airline credit cards used to offer great rewards. But because of the situation in airlines, frequent flier miles have become less valuable. But instead, frequent flier cards now offer other types of perks.

No baggage fees: It’s sad that it now comes down to this. But since airlines began charging fees for baggage, they have started to reward their frequent flyers who have their credit cards. Holders of some of these cards get their baggage fees waived. For example, if you carry a Delta credit card, you do not need to pay any baggage fees!

Companion ticket: Another great feature the airline cards offer is free or discounted companion tickets. This is normally given out once a year when you reach your anniversary ticket. You either get a free companion ticket or a $99 companion ticket discount. This perk works out well for folks who travel with a companion.

Car Rental Collision Insurance: This is really one of the best money saving perks of credit cards. When you rent a car, you will be inevitably asked to purchases car rental collision insurance and you will get that look if you refuse. Well, you can refuse if you use the right card with this feature. That means if you pay a car rental with a credit card that automatically gives you the car rental insurance, then you do not have to purchase it from the rental company itself because it is already covered. I’ve probably saved hundreds of dollars with this.

Warranty Extension: Many of the better credit cards give extended warranty as a perk. That means if you (for example) buy a washing machine with your credit card, you will get (for example) an additional year of warrant beyond the manufacturers’ warranty period. That can really save you money from repairs and also from purchasing a separate warranty (often from the store that sells you) which can cost a couple of hundred dollars.

The more you know…

So there you have it. Some money saving techniques you can get from your credit cards. Please share with us other ways you have saved money with credit cards.

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