A recent data shows that in India, there are more than 30 million credit cards. The reliance of people on this form of plastic money is on an all-time high. It is because a credit card offers many enticing benefits.
The credit card users not only use it to make a big-ticket purchase but use it a backup during financial emergencies.
The uniqueness of the credit card to help anyone use it even when you don’t have funds in your savings account makes it a compelling financial tool.
Given the convenience and ease of making credit card bill payment and many more benefits that credit cards offer, they have become a household phenomenon.
However, people also tend to make some credit mistakes while using the credit card, which may affect their CIBIL Score and overall financial health.
Hence, to avoid such mistakes and make the most of a credit card, it becomes a must to follow some tips. Read on to know more right away!
Easy tips to help you use your credit card smartly
1) Keep off unwanted expenses and make the payment in full
Since credit cards come with a considerably big credit limit, people tend to make the mistake of indulging in buying something expensive. As a result, they find themselves in a soup. Thus, the solution here is always keeping your spending in check. What’s more, you should always ensure to make the credit card bill payment in full to avoid paying massive interest on the carried amount. Never get in awe of paying only the minimum amount due as it will lead to paying heavy interest fees.
2) Opt for a feasible credit limit and set a personal limit
Never get into the trap of availing a higher credit limit from your bank. This way, you may end up buying more than required and may find the repayment tough. Thus, to ensure never to let this situation to arrive, you should also set a personal limit. The personal credit card limit should not go beyond 30-50% of the existing limit. It will help you avoid mindless spending. Having a higher credit card is good as it can help you during emergencies, but using it for unwanted needs is not cool.
3) Ensure to get the right credit card for the right needs
Banks come with multiple credit card offers to complement diverse needs. Hence, you should carefully use the credit card as per your purposes. For example, travel cards for traveling, reward cards for shopping and fuel cards for fuel expenses. You can then ensure to use the right card at the right place to derive their offered benefits.
Lenders such as Bajaj Finserv presents Bajaj Finserv RBL Bank SuperCard that come with 20,000 reward points as the welcome joining bonus. You can redeem reward points to get some handy discounts on future credit card spending.
4) Keep your credit card safe
Credit cards can help you to shop and even and make its usages during emergencies effortless. But it also comes with its share of risks. Cybercriminals are looking to sneak into your credit card details when you shop online and may make the credit limit vulnerable. Thus, to avoid such situations, you can sign up for security programs from your lender that may compensate you during a loss of card or fraud.
5) Keep track of your reward points and enjoy freebies
All credit card companies offer reward programs on the pre-determined spending pattern of a customer. You may also get some exclusive deals from time to time, which you should be mindful of. Hence, you should pull out your credit card statement and try to maximize the reward points and enjoy exclusive deals and freebies in the future.
You are now aware of some easy steps to handle your credit cards which also include making the credit card payment on time and in full – a must for users. After going through the discussed pointers, you would now be able to use your credit cards smartly and avoid all mistakes. Good luck!
If you are ready to apply for a credit card in the future, many credit card issuing companies such as the Bajaj Finserv offers pre-approved deals on many products. It could range from a credit card to EMI finance to personal loans, business loans and more. The aim of such offers is to ease out your overall loan procedure to make it less time-consuming.
You can share a few of your basic details such as your name and mobile number to check out your pre-approved loan deals right away.
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.