How to save hundreds on your expenses by having credit card cash return

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credit card cash return
Dollars Cashback promotional scheme. Discounting the real cost of a purchase by refunding the purchaser with cashback, thus saving money. Ilustrated with a cashback card and part of a perforated one US Dollar note on a silver tray. Isolated on white.

A credit card is a great asset that Hong Kong residents should consider. While many people think that budgeting with a credit card is overwhelming, the good news is that using a credit card responsibly can give you a cash rebate for eligible spending while helping you build your credit. In fact, if you play your cards right, everyday purchases can help you potentially save hundreds of dollars. 

Dollars Cashback promotional scheme. Discounting the real cost of a purchase by refunding the purchaser with cashback, thus saving money. Ilustrated with a cashback card and part of a perforated one US Dollar note on a silver tray. Isolated on white.

Thanks to the increasingly generous credit card cash return programs, there are endless cash reward options. All you need is to get the right cashback credit card for you. When it comes to picking a credit card, MoneySmart helps you compare and find the best credit cards in Hong Kong, making it easy for you to enjoy hassle-free cash rewards.

If you are in Hong Kong and are wondering how you can save your money, this post will discuss how you can save hundreds on your expenses by having a credit card cash return.

Saving money by using a credit card 

Cashback credit cards are some of the most popular rewards credit cards out there that offer cash rebates on specific spending categories. Importantly, while each reward credit card has its own reward program, you can only save money when you use your cashback credit card to make purchases, sometimes at designated merchant outlets. As such, savvy cardholders can get the most out of cashback rewards by purchasing with their cards.

But, how can you maximize credit card cash return? Well, there are many ways your card can save you money.

Here are tips that will help you get the most credit card cash return:

Evaluate your spending habits and pick the best card for you: The first step to saving with a cashback credit card is ensuring that you pick a card that suits you best. To pick the right card for you, be honest with yourself and figure out where your money is actually going. That way, you will be able to identify a card that can reward you most for your spending habits. MoneySmart makes it for you to compare the best cash-back credit cards in Hong Kong, allowing you to pick a card that suits you. Even better, you may get supermarket vouchers worth up to HK$500 if you successfully apply for your cashback credit card via MoneySmart.

Diversify your spending strategy: Whether you have one or multiple credit cards, diversifying your spending strategy can help you max credit card cash return. To save more money, do some research on each of your cards and identify what each is best for. Card issuers give cardholders cash back because of the interchange fees paid by merchants, but many cards will have specific tiered rewards and bonus categories.

Use discount malls or supermarkets: Many credit card issuers partner with various retailers to offer discounts to cardholders. As such, you can save a considerable amount by making purchases in specified outlets. Remember that you must use your card to be eligible for the rewards. 

When possible, always pay with your credit card: Many cashback credit cards allow cardholders to accumulate cash rewards on their credit card. While you may want to use your card when purchasing in designated outlets only, paying for most of your expenses with your credit card can help you maximize credit card cash return. Many cards offer up to a 1% rebate, meaning you can save on everyday purchases.

Cashback credit cards provide an excellent way to max out savings on regular expenses. Thankfully, these cards are super easy to use.

With a credit card, the cash rewards are automatically credited to your credit card account. Even better, you don’t pay anything to redeem your cash rewards on a credit card as you would with air miles and other gifts.

Conclusion

Cashback credit cards can be a useful savings tool as long as you shop carefully and use your card strategically. Even better, paying for your expenses makes you eligible for credit card cash returns and other bonuses. If you are looking to buy your first cashback credit card in Hong Kong, MoneySmart helps you compare and pick the best card for you. Hopefully, these tips will help you save money when using your card.

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