7 Little-Known Credit Card Tips That Could Save You Money

Credit cards made up about 35% of all transactions last year, according to Federal Reserve data. And yet, most people swipe without realizing the hidden perks and money-saving tricks their cards come with.

From boosting your credit score to avoiding sneaky fees, here are seven little-known credit card tips that could put extra cash back in your pocket.

1. Annual fees aren't always bad

Conventional wisdom says you should keep fees as low as possible, right?

But some of the best credit cards charge $95 a year and can easily give you 5x-10x that value in perks. Think travel credits, airport lounge access, purchase protections, and huge welcome bonuses.

If you pick the right credit card for your lifestyle, that annual fee ends up being one of the best trades you'll ever make.

2. Balance transfers can save you thousands

If you're carrying a balance on a high-interest card, a balance transfer offer can be a total lifesaver.

Some cards give you up to 21 months with 0% intro APR to knock out your debt without extra interest piling up. Just watch out for the transfer fee (usually 3%-5%). Even with the fee, you could save thousands in interest charges.

Check out our top balance transfer cards here, with up to 21 months of 0% intro APR.

3. High credit limits can boost your credit score

This isn't about spending more -- it's about making your credit look better. When your limit goes up, your credit utilization ratio (balances vs. total available credit) goes down. And that's a big factor in your credit score.

Experts recommend keeping your usage under 30%. But under 10% is way better if you can. Sometimes all it takes is asking your card issuer for a limit increase.

4. Your rewards devalue over time (and sometimes expire)

Cash back, points, or miles aren't always permanent. Some issuers put expiration dates on unused rewards (12-24 months of inactivity is common).

And even if they don't expire, rewards lose value the longer they sit. Just like holding onto cash, inflation eats away at what those points are worth. If you've been hoarding a big stash, now's the time to put them to work before they shrink in value.

5. Your card might protect your stuff

This one blows people's minds: many credit cards include built-in purchase protection.

That shiny new laptop or phone you just bought could be covered if it's stolen or damaged within 90 days. Double-check your benefits guide -- it's basically free insurance most people don't even realize they have.

Pro tip: Many travel credit cards include trip protections and insurances if you pay with that card. This can save you hundreds (or thousands!) if things go sideways on a trip.

6. Cheaper globetrotting with no foreign transaction fees

Traveling abroad with the wrong card is like throwing money away. Foreign transaction fees can add up to 3% on every purchase.

A lot of travel-friendly cards ditch these fees entirely. So if you've got a trip planned, make sure you've got a no-foreign-transaction-fee card in your wallet.

7. Pay twice a month instead of once

Here's a sneaky credit score hack: make two payments each month instead of one.

By paying down part of your balance mid-cycle, you reduce the total debt number that gets reported to the credit bureaus. When your overall utilization is lower, your credit worthiness is greater.

It's a simple trick, but has a big impact.

The bottom line

Credit cards are amazing spending tools -- as long as you use them wisely.

Treat them right, and they'll save you money, build your credit, and even score you perks that feel like free upgrades in everyday life.

Ready to put these tips into action? Check out the best credit cards available now and find the one that fits your lifestyle.