Credits cards can be a helpful finance tool. They can also be a means to financial disaster. It all depends on how you use them. This article details a handful of some smart credit card habits and spending tips that will save you money.

Smart Credit Card Habit List

If you are able to implement these spending habits into your everyday life you will be sure to see huge financial improvements. It will literally change your Life.

Follow Strict Card Purchasing Habits that Maximize Cash Back Rewards

Pay very close attention to all the cash back offers that are available to you. If you are clever there is no reason why you should not be able to earn 2.5 – 3.5% cash back on all credit card purchases. Reward points are good too and can often add more value to some people than the cash reward option.

Middle Man Spending to Boost Cash Back and Point Rewards – Only if It’s 100% Safe

This is a bit sneaky but if done carefully and regularly can really add up to big money. It works like this;

Stay on the lookout for opportunities to make purchases with your card on behalf of any trusted and dependable third parties. This allows you to rack up even more credit card rewards. This strategy can seem like a hassle at first but you may find that over time you get quite good at it.

You may be surprised when you see how many opportunities to do these point purchase boosts you are able to find. For example, you may need to purchase things for work. If you can figure out a way to use your credit card for the purchases and then just get reimbursed at the end of the week than you have yourself a little side hustle.

Keep a Zero Balance – Consolidate Credit Card Debt with Low-Interest Loans

Credit Card Debt is typically equipped with sky-high interest rates. It is too expensive to carry a balance on these accounts. To do so is just poor debt management. If you are unable to pay off the entire card account balance then you should borrow from a more reasonable lender that carries low-interest loan products. Use the money from the low-interest loan to pay off any high-interest debt that you have. This is a common debt management tool known as debt consolidation.

Pay on Time – Every Time

Perhaps this is a more obvious tip but it is important that you make all credit card payments on time. If you fail to do this your cost of debt will go up and the reward offers will go down.

Negotiate Better Terms – Just Ask

Make it a habit of asking your credit card company for more favorable terms or higher limits or some other perk that is relevant to the situation. You may not get it all the time but if you keep asking you will eventually get a yes. The simple fact is that you won’t get anything unless you ask for it. Besides, the worst that can happen is that they say “no”. Oh well.

Become a Credit Score Expert

The better credit score you have the better credit offers you will get. Thus it will be a huge benefit for you to know how credit scores are calculated. By becoming a credit score expert you will know how to improve your credit. Then of course, by improving your credit you will improve your overall financial well-being and your ability to manage debt wisely.

Make One Spending Habit Change That Improves Your Monthly Budget Every Month

Making small spending habit improvements consistently will add up to real money over time. At first finding areas to improve your budget will be easy. If you start to run out of ideas you can utilize your credit card purchase history to come up with new potential improvements.

For example, if you notice that you go out to eat 3 times a week you may want to simply start ordering water 2/3 times. At 2.50 a soda, this will save you 5$ a week or $260 a year.

Take Advantage of the Purchasing Insurance that is Included in Almost All Credit Card Accounts

If something doesn’t work out as it should with something you buy with your credit card file a claim and get your money back. Most insurance policies will pay out on every claim under a $1,000.00 Most people have no idea that they have that sort of coverage.

If you buy movie tickets but suddenly have to handle an emergency at work than you are entitled to a reimbursement. If you buy something and it breaks… it’s insured. Try it out, it works.

This article by Roman first appeared on Finance Guy – FinanceGuy.org and was distributed by the Personal Finance Syndication Network.