How to Save a Few Dollars Every Month with a Credit Card

What if you didn’t have to pay the full price on all purchases charged to your credit card? Of course, you’re responsible for paying back all charges you make. But many credit cards offer a small return in the form of rewards – usually cash back or points – on all purchases made. Some cards also offer valuable statement credits, partner offers, and other cost-saving perks worth exploring. Play your cards right and you’ll be able to use these benefits to save some money each month. Here’s how.

From reliving the fun of TV shows you used to watch to discovering new shows, movies, comedy specials, and live sports, streaming services offer a wide array of entertainment options. And some credit cards now let card members get a monthly statement credit for subscribing to certain streaming services – a straightforward way to save some money each month on such subscriptions.

If you’re a frequent traveler, using a credit card that partners with a hotel or airline can be a smart way to save money during weeks or months on the road. Maximize savings by taking advantage of travel-related perks, such as free checked bags on flights, free annual companion tickets, discounts on in-flight purchases, airport lounge access, hotel statement credits, and annual free-night awards at particular hotels.

Credit card companies commonly partner with other businesses to offer cash back if you use your card to make a purchase with that brand. Keeping an eye out for these partner offers and enrolling in the ones that align with your everyday spending is another way to save a little extra money every month.

Available promotions vary by credit card, and they’re usually temporary offerings, but here’s a general example of what savings could be possible:

• Get $30 back if you spend $150 or more at a specific clothing store.
• Get $25 back on a specific yearly streaming subscription.
• Earn 10% back on purchases at a specific fast food chain, up to $3 back.

Some offers allow you to earn the perk multiple times, others are valid only once. Note that you might need to opt into offers by adding them to your card, either on your card’s online account or mobile app. Credits earned are usually applied directly to your statement balance.

If you’ve ever carried a balance on your credit card, you probably know about monthly interest charges. Avoiding that interest charge, or at least lessening its impact, is another way to save a little money every month. One way to do so is to execute a balance transfer at a lower interest rate. You may find such transfers available with your existing credit cards or with a promotional offer from a new lender. Balance transfer promotions often guarantee a 0% interest rate on a balance transfer for a specified time period. Others might instead offer a very low rate on balance transfers.

You may not notice the savings for the first month or two, though. That’s because balance transfers commonly include a one-time balance transfer fee. For example, if you did a balance transfer totaling $5,000 and there was a 3% fee to do so, the new total balance would be $5,150.

Even with the fee, transferring a balance from a high interest card to a card with a 0% balance transfer promotional period or a lower interest rate will likely help lower your total payoff amount in the long run, effectively saving you extra money every month until the balance is paid off.