How To Use A Credit Card to Improve Your Household Cash Flow

If you use them wisely, credit cards can be your family’s budget’s secret weapon. They can be used to conveniently pay for bills, safely shop online, and you keep track of your expenses. It may also come with perks and discounts that can help you save money. With careful planning and disciplined spending and our credit card usage tips, you can leverage your card to your advantage.

 

How to use credit cards wisely

Are you using your credit card sensibly? Here are some strategies to make the most of your credit cards and boost your household cash flow.

Get the right card (or cards) for your family’s lifestyle and needs

Start by selecting a credit card that aligns with your lifestyle and financial goals. Look for cards with benefits, promos, and rewards programs that match your spending habits. Consider cards that offer travel rewards, restaurant discounts, or cashback on everyday expenses like groceries and gas.

Getting a card that matches your lifestyle is the key to maximizing its benefits, allowing you to save money and improve your cash flow.

• If your family spends P5,000 on eating out twice a month, you can cut that spend by up to half with a card that offers 50% dining deals.
• If you drive a lot, a card that has a 3% fuel rebate can save your family up to P15,000 a year.
• If you love to travel, this card lets you earn a mile for every PHP 17 spend on airlines, hotel accommodations, and foreign currency transactions. You also get a free airport lounge membership.
• If you mostly use your credit card for household purchases, this card offers a 5% rebate on groceries, telecom and streaming services, plus school and bookstore spends. You can even calculate how much you can earn on rebates.

Buy what you need now and pay for it at a later date, interest-free

A credit card can help you manage your household expenses, allowing you to buy what you need now — like groceries and school supplies — and pay at a later time when your card is due.

To avoid unnecessary interest charges, it’s crucial to pay your credit card balance in full and on time each month. By doing so, you can take advantage of the interest-free grace period typically offered by credit card companies. Paying your balance in full also helps you build a good credit history, which can lead to better financial opportunities in the future.

Look out for introductory offers and 0% installment promos

Take advantage of promotional offers like introductory rewards bonuses, and 0% installment. If you need to invest in new appliances, 0% installment promos can make it easier on your monthly cash flow.

Take advantage of balance conversion

Sometimes, you’ll encounter the need for unexpected big purchases, like your fridge or washing machine breaking down. Or sometimes, a great appliance deal pops up that you can finally switch to an inverter to save on electricity in the long run. But then you’re worried about how the big purchase will dent your cash flow.

With a credit card, you can convert those big purchases into easier-to-manage monthly payments using balance conversion. With this feature, you can split your big ticket spend into three to 60 monthly installments.

Make the most out of rewards and cashback

Make the most of your credit card rewards by redeeming them for cash, gift cards, or travel discounts. Some credit cards offer bonus cashback in specific categories, such as dining, groceries, or fuel. By using your card for these purchases, you can earn extra rewards and stretch your budget.

TIP: Monitor your transactions regularly. Choose a card that provides a mobile banking app that allows you to see your expenses via running transactions and your statement of account. Use the information to become aware of your spending patterns. You can then make adjustments and identify areas where you can save money.

Make sure you use OTP (one-time passcode) authentication and regularly monitor your credit card activity and statements to catch any fraudulent or unauthorized charges. By using credit cards wisely, you can improve your cash flow and enjoy the additional benefits they offer. Find the right credit card for you here.