Life Hack: Get cuts on your credit card bill simply by max out card spending & still paying zero fees (Hint: 20% off for my case)

Many said this: avoid as much as possible paying using credit card and instead to pay everything using cash, because using it (credit card) you may end up in trouble. That statement, made credit card looks some kind of evil. While I agree on the trouble part, but I am not agree on the avoiding part. Depends on how you manage your spending and credit card payment, so long you are good in handling credit card usage and pay it on time, not only it will help you on many things such as when you don’t have cash (since you can pay later but make sure to pay it on time), get a better loan interest compare to someone who never use a credit card, but also it will give you bonus/benefit as well. So instead of being evil, credit card can actually become your saviour!

Maximize credit card spending to get cuts on credit card bills

Sound like contradicting, isn’t it? But let me show you how what I did since the past 3 years – the year where Apple started rolling Apple Pay to the masses then followed by competitors.

I like travelling – last year I travelled into 3 different countries, each 2-4 weeks – but when it comes to credit card type, I prefer one that gives me actual dollar rebates instead of air miles. Main reason is to get the bonus cash back each month, offsetting my credit card bills, rather than have to wait for the air miles to accumulate until don’t know when.

And since everybody is not created equal, you may want to find the best credit card that suits you and your needs.

Now my scenario: Getting up to 20% return when spending using Credit Card. Here’s how.

In Singapore, there are many Banks and Financial Institutions offering credit card lines. Not only they give a sign up bonus, but typically they also give monthly bonuses for any spending made (it could be air miles, cash rebates, voucher and many things) and since there are plenty of credit card vendors (Banks and Financial Institution), their bonuses – offerings and promotions – are competitive! Good for consumers. Good for me 🙂

There’s this Bank offering a credit card line that give up-to 20% cash rebates when you fulfil their conditions: spend at least $500, deposit some amount of your money into its savings account and transfer in your salary into the Banks’ savings account.

I fulfil all of its conditions each months and voila! At the end of each months, the Bank returns me $100 over dollars as the cash back. Getting $100 out of my $500 spending, it’s 20% off. Isn’t life good?

Yes, it is! So while I am enjoying $500 worth of items and services, I am actually paying only $400.

In case you are not here in Singapore, don’t worry! I do believe, there’s should be plenty of similar offerings available in your country/state. You just need to dig more on the internet. But in case you are in Singapore and interested to know the Bank I’m choosing, do message me down below – for sure I’ll happily tell you.

What if I don’t spend that much?

Well, the scenario I told you above works only if you spend the amount required. What if you don’t?

Some people probably don’t spend so much on credit card. I don’t (again, contradicting, but keep going on, I’ll tell you how shortly). I typically have my lunch only at humble food courts (people here calls it as hawker center) eating humble foods, which humbly the merchants don’t accept credit cards. But, doesn’t mean you can’t get the cash back.

Share credit limit with your loved ones

What if the spending is combined between you and your loved ones – be it your spouse, parents, kids, siblings? For sure the amount is getting bigger right? Making it much faster to maximize the card spending. This is what I have been doing over and over again and it’s totally legal.

In the past, before Apple and rivals came out with Apple Pay (and other similar payment model), you can do this by getting a physical supplementary or add-on cards, but for a price or lend your credit card to them (free but you can’t use it while they are using it). But ever since Apple Pay came to the masses, no supplementary nor add-on card is required anymore. More details below.

Reducing credit card fees to zero

1) Avoid using supplementary card/add-on card

But instead use mobile payment technology such as Apple Pay. Using Apple Pay (or similar payment technology such as Samsung Pay), not only it’s free, but also enables you to assign 1 credit card to multiple smartphones. 1 to your smartphone, the same credit card to your spouse, kids, parents, siblings.

Now everyone can make use of the same credit card altogether – maximizing the spending. At the same time, no fees incur for supplementary or add-on cards.

2) Waive the Credit Card fees simply by calling their hotline

The convenience of having a credit card where you can just swipe here and there comes with a price as well – a credit card annual fee. However in most cases, if you don’t owe any debts/unpaid balance, you can easily ask credit card companies to waive off your credit card fees.

There are credit card companies that waive off the credit card fees automatically when you spent or surpassed certain amount, but in most cases, the credit card companies need you to call them to ask for a fee waiver. All you need to do is just pick the phone and call them to get a waiver.

Be smart on Credit Card!

So, be smart on credit card and be sure to spend smartly!

Once you do, credit card is not actually evil – it’s actually the best (plastic) friend you have in your wallet (and now your smartphone!).