How to Maximize Your Savings if You Have Good or Excellent Credit
Enjoy Traveling for Miles and Points
You've worked hard to reach high credit scores and now it's time to reap rewards. With good or excellent credit, you can easily get approved for a travel rewards credit card that has a big sign-up bonus and ongoing points or miles rewards. A sign-up bonus can be enough for an award domestic flight, and ongoing rewards will help you earn miles or points towards future free flights. Thus, you will be able to save on your domestic or international travels. To maximize your rewards, try not to carry a balance on your rewards credit cards. Interest can easily eat your rewards, so try to pay off your balances each month.
Rack Up Cashback Rewards
The most straightforward and easy to understand rewards are cash back rewards. They are good when you want to save maximum as you can easily calculate your savings. You can choose to earn equal cash back rewards on all your purchases or you can choose a card with rotating categories that allow to earn additional cash back in specific categories. Plus, there are cards that allow to redeem cash back rewards for cash deposited straight to your bank account. So, you can choose them to be deposited to your savings account or any other account you have.
Transfer Your Balance and Pay It Off
It's not a secret that interest can eliminate the rewards you've earned in a blink of an eye. The interest rates on credit cards are much higher than rewards earing rates. So, if you find yourself struggling to pay off the card balance in full, consider transferring the unpaid balance to a 0% APR credit card. Balance transfer will allow you some time to pay off your debt in full at no interest, which will help you keep your rewards intact and therefore maximize your savings. Your new balance transfer credit card may also offer rewards on purchases, but we would advise you not to use it for purchases until the transferred balance is paid off.
Head for Big Purchases with 0% Intro APR Cards
If you are planning a big purchase which you won't be able to pay off right away and therefore planning to put it on a credit card, get a 0% intro APR credit card. There are a lot of offers with 0% intro APR on purchases for people with fair to excellent credit. The zero promo period may be between 6 months and up to two years. You can choose the promo period which is more comfortable for you to pay off your purchase. Just calculate your monthly payments to make sure you will be able to pay off by the end of the 0% interest period. Remember, when the promo APR ends, an ongoing interest rate starts.