Search for Savings & Loans
6 Ways Credit Cards Can Save You Money
6 Ways Credit Cards Can Save You Money
See The Best Loans Available in Kenya Today
Money Management

6 Ways Credit Cards Can Save You Money

Doris Kendi
November 22, 2021

When you think about credit cards, I bet you rarely think ‘save money.’ You think about the fees, interests, and the fact that it is a debt before thinking of anything else, right? 

But what if I told you that there are many ways a good credit card can help you save? Yes! You read that right. 

There are many benefits and perks of using a credit card. Some of them are little known and may seem insignificant, but they are a great way to save money while you are out about spending. 

Here are six examples of how credit cards can save you money, even while you are spending. 

Interest-free Money Access

How many options do you have at your disposal at the moment to give you a quick interest-free short-term loan? I guess maybe a few trusted friends or family. Anything else, and you have to budget for the interest when repaying the loan. Salary advance, mobile loans, short-term bank loans, etc. - all attract an interest upon repayment. 

With a credit card, you get a grace period of between 30-50 days, depending on the terms and conditions of the issuer. During this period, the amount spent on the credit card is interest-free and only starts attracting interest after the grace period. How cool is that?

For example, suppose that you do not have a credit line with your suppliers but need to restock your business as a small business owner. You can easily access money at no extra cost with a credit card as long as you repay the amount within the interest-free period. 

Generally, credit cards offer you cheaper and quicker ways to access cash when you need it. All digital loans, even those with short repayment periods, still attract interest upon repayment, while with a credit card, you have an interest-free period. 

Rewards and Cash Backs

Credit cards reward you for spending. Sounds like a dream, right? Many credit card issuers return 1-2 percent for every purchase you make or give bonus points every time you use the card. 

Here are examples of local credit card issuers and their bonus and cashback offers:

Examples of credit cards offering cashback rewards

While technically, you are spending money when making a purchase, it feels nice to get a portion of the money spent back. 1% or 2% cashback might not look like much at first, but the little saving adds up over time. 

Also, credit card reward points don’t always come in cash form but as points that you can redeem at selected retailers instead.  But either way, they are like free money. 

Purchase Protection and Extended Warranties

This is a very little-known perk of credit card purchases. Credit card purchase protection allows you to file a claim with your issuer to receive a replacement, repair, or reimbursement for stolen or damaged goods.

Some credit cards also offer extended warranties on big purchases like appliances or electronics. This can save you money by covering for repairs and when the said items break or malfunction. 

However, in both cases, you should ensure to understand the issuer policy to understand what products are covered by this perk. It is also essential to understand the claim process for when you need to apply for the claim. 

Travel Insurance

Credit card travel insurance comes as a pleasant surprise for people who travel a lot. Imagine getting an excellent free little cover for all the financial investment you have made for your travel: airfare, accommodation, adventure, etc. 

Travel insurance covers you from any unexpected incidents that might cause your flight to be delayed or canceled: crazy weather changes, illnesses, etc. Travel insurance also comes in to replace your baggage in case of loss or damage.  

Now imagine getting this cover for free? Will that not save you a tonne of money you would have otherwise used to buy the insurance cover? 

Here are examples of credit cards that offer this benefit:

More Travel Perks

In addition to travel insurance which comes in handy, especially if you are an avid traveler, many other travel perks come with owning and using a credit card. Here are some examples of other credit card travel benefits:

Cost of Cash

Now, here is another not-so-obvious way that credit cards can help you save money. Carrying around a lot of liquid cash can be cumbersome. There is no safeguard if you happen to lose the money. 

When using a credit card, even if you lose it, all you need to do is report it to the issuer and get a replacement. You also get to enjoy protection against unauthorized charges. 

This benefit is especially very useful when traveling - most credit cards are automatically activated for worldwide acceptance. 

People who are traveling are more vulnerable to fraud simply by virtue of the unfamiliarity of the local language or surroundings. The risk is higher with cash, but with a credit card, you can reduce the damage by a single phone call to the issuer to deactivate the credit card. 


As you can see, credit cards are not only debt. Many benefits and perks come with signing up for a credit card with your local issuer. It is especially a cool thing to have if you love traveling. You can get free travel insurance, discounted tickets, VIP airport pass, etc. - all of which helps you save a few bucks in the process. 

But these are just some of the perks that come with signing up for a credit card. To learn more about credit cards offered locally, please visit our Best Credit Cards comparisons page on our website. 

Doris is a finance professional, freelance writer and SEO expert. She has experience helping businesses of all sizes create content that helps improve their site quality and increase their online traffic. She is a personal finance and wealth creation enthusiast and a frequent contributor to Money254. Visit Doris' personal website to learn more about her work.

Download the new Money254 App and don’t miss out on the next article.

Join 1.5M Kenyans using Money254 to find better loans, savings accounts, and money tips today.
Get it on Google Play

Learn more about Personal Loans available in Kenya on Money254

Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.

Instantly search loan products from established providers in Kenya and compare on the terms that matter most to you.
Find the best Personal Loans for me

Don't miss another article - download the new Money254 App Today

Get it on Google Play

Sign up for our newsletter and get weekly money tips to your inbox.

Get updates from the Money254 team on financial news and new Money254 features.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.