Did you know that your wallet also has secrets? No, it doesn’t have secret pockets (although that would be great, in all honesty), but you can look into it if you want to find effective hacks to increase your finances.
Today, we will discuss all the untapped benefits of credit and debit cards that might save you hundreds of dollars a year. I bet you didn’t know about these hacks, and trust me, as soon as you lay eyes on them, you will be all giddy and excited to try them out! Now, where were we? Oh, yes, to the money hacks!
Use a savings app
You can build a ton of savings even if you spend the money by linking your credit and debit cards to an app such as Acorns and Digit. Acorns has this thing where it automatically rounds up your purchases to the closest dollar and then adds what’s left straight to your savings.
Digit also analyzes your spending and income, and automatically sets aside a bit of that extra cash for savings. You can see it like this: it’s a tip jar by the register or a spare-change dish, but all the money goes straight to your future.
Maximize your card benefits
Credit cards often come with plenty of valuable, although not so easy-to-overlook benefits. In fact, according to a 2019 J.D. Power study, only 36% of cardholders know everything it is to know about supplementary benefits on their own cards.
“As a general rule, consumers are probably not so much in the know when it comes to all the features of their credit cards,” as John Cabell, director of wealth and lending management at J.D. Power and a lead researcher on the study explained. Money-saving card benefits might be miscommunicated or even communicated proactively by the issuers. Some of these benefits include:
- travel perks. Cabell explained that airline cards that also come with free checked bags and airport lounge access, but also cards that charge zero foreign transaction fees are in this category. There are many cards that reimburse the application fee for TSA precheck and Global Entry.
- cell phone insurance. Here are some examples: Wells Fargo, U.S. Bank, Mastercard, and many other credit card companies have cell phone coverage with some cards, especially when you pay your bill with the card.
- automatic credits. some cards will instantly reimburse you for a bunch of things like travel expenses, rideshares, meal delivery, and even purchases at top merchants, up to a monthly or even with an annual limit.
You can read your credit card’s benefits guide to check and learn what’s included. You might be pleasantly surprised by how much you can actually save. A checked-bag benefit, for instance, might save you $120 on a single round-trip with a companion.
Getting cell phone coverage from your card can also help you save $9 and even #15 every month on your wireless bill, especially if you were paying before through your carrier.
Use your rewards cards for everything
Some people have this habit of using credit cards only for “big” and “important” purchases as they pay for smaller or even everyday purchases with either cash or debit. However, every single purchase that isn’t on a rewards card is nothing but money left on the table.
After all, if you pay your balance in full every single month, it’s a bit silly not to have some sort of rewards card, especially since you are getting either something or nothing at all. Rewards cards basically give you a great discount on all your spending.
Depending on the type of card you own, how its rewards are made, and where you can use it, you will generally earn rewards that are equal to 1% to 5% of the purchase price. Even if you earn a paltry 1% on everything, a modest $100 in spending a week will automatically turn into over $50 in rewards in a year.
Stack savings with a cash-back portal
Websites like Rakuten (old Ebates) and BeFrugal will pay you a certain amount back on every single qualified purchase from participating retailers. According to a Rakuten spokesperson, for instance, the average member earns 4% to 6% in cash back on purchases made through the site, which can easily add up to hundreds of dollars a year.
The secret is to get into the habit of checking these sites before you shop and use them only for purchases you are about to make either way. I am a big online shopper, and as soon as I learned about Ebates a couple of years ago, I thought “Why would anyone not use such a program?”
You’re basically ordering something from the store anyway, so why not get that cash back, if possible? You will end up saving over $200 over the course of two years. You can use a rewards credit card on a cash-back site, and you will automatically multiply your savings with virtually no effort.
Know your price protections
Now, here’s another tip that will convince you to keep your receipts: you might be able to get that money back if something you decided to buy goes on sale for less somewhere else. For example, if your credit card has some sort of price protection, you can easily claim a refund of the difference, as long as you submit proof of the lower price on an eligible item within a specific time period right after your purchase.
If you don’t have price protection on your card, there are many huge retailers that will gladly offer their own version if some competitors sell the same item for less. Some of the stores we already know about include Bed Bath & Beyond, Best Buy, and Home Depot.
Plus: gift cards at a discount
Have you heard of websites such as CardSwap.ca? They basically allow you to buy other people’s unwanted gift cards, and they’re honestly awesome. Even if you don’t get a discount on the card purchase, you can easily collect SwapPoints that can be redeemed for another card.
If you have a gift card you don’t plan to use, you can simply sell it for a percentage of its face value. Other options for some of you who want to be more savvy also include Costco, because there, members can take advantage of discounted gift card bundles, like two $50 gift cards sold for only $79.99, but also Rakuten, where you can buy gift cards.
Audit your subscriptions
We’d advise you to make a list of all the subscriptions you currently have and cancel the ones you haven’t used in a while. For example, if you can’t live without your favorite magazine, wait until renewal time comes. Oftentimes, publishers will send out discounted offers that will keep you on their mailing list.
Use the local library
Well, let’s be honest: not everyone’s lucky enough to have access to a local library, but we wish we would because it’s an extremely valuable resource. For example, if you have a family full of avid readers, that will automatically save you hundreds of dollars over the years. Also, keep an eye out for used library book sales, because you might be able to stock up your favorite books for a fraction of the cost of new ones.
If you found this article useful, we also recommend checking: 12 Easy Ways To Receive Gift Cards for Free
