Subscription costs are sneaky. You sign up for one service, that’s $10. You sign up for another, that’s $6.99. Oh, and then there’s that other subscription for $15. Because each service costs less than $20 per month, you barely notice. But the costs keep stacking up as you add more and more. One way to make sure you’re getting the most bang for your buck is to link all of those subscriptions to your credit card.
Many subscriptions require a linked credit card to start the service. But if they don’t, you should consider doing so. Linking a subscription to your credit card offers a few benefits:
Using a credit card to pay for subscriptions allows you to take advantage of credit card reward programs. Just as each monthly expense adds up, so do the rewards from your card.
Another benefit of using your credit card to pay for subscriptions is fraud protection. If there’s ever an incorrect charge from the service, your credit card has you covered.
Using your credit card to pay off subscriptions will also keep your card active, which helps your credit score. Credit bureaus love seeing long, continually-paid accounts.
Of course using your credit card for subscriptions is only a good idea if you’re able to pay the balance each month. If you don’t pay off your card, you’ll get hit with interest charges and debt could pile up. As CNBC notes, if you’re having trouble paying your card each month, take a look at your subscription costs. There’s a good chance you’ll find a subscription or two that you don’t even use. Cut them and get back to taking full advantage of your credit card.
This article was originally posted by Chris O'Shea on savvymoney.com