How To Maximize The Benefits Of Your Credit Cards



Having a credit card is one thing but using it to your advantage is another. If you are not using your credit card wisely then there are chances that you will face some unfavorable situations like debt. We have covered some of the tips for you so that you can maximise the benefits of your credit card. Keep reading to kick start your research.

  • Choose the right card: The first and foremost thing that you need to begin with is choosing the right credit card. You need to begin by identifying your needs and spending habits and comparing credit cards in order to find out which credit card matches your requirement. Having the right credit card maximises the 50% of the credit card benefits other half depends on you how wisely you use it.

    Check here: List of Top Credit Cards Available in India
  • Make the most out of rewards: Once you have received your credit card make sure that you use it for those transactions only that let you earn reward points. Using a credit card to earn reward points maximises its benefits. You can still use your credit card for other transactions as well only during times of emergency.

  • Redeem rewards: You can make the most out of your credit card by redeeming your hard-earned reward points before they expire. You can redeem them for purchasing products, vouchers, booking flights/hotels, etc. Reward points have an expiry time and you can redeem them during that time period only.

  • Pay bills on time: It is important to clear your credit card dues on time as it will help in building a good standing account as well as a good credit score. You can choose to register for the auto-debit services in case you keep forgetting the due dates. Frequently defaulting the credit card payments can lead you to a possible debt trap.

  • Don’t use beyond the credit limit: It is advisable to keep the credit utilization ratio between 30% - 40%. You get a pre-defined credit limit on your credit card that you can use to make purchases. If you are one of those who go on a shopping spree then you must set a threshold limit on your credit card so that on reaching that limit you will be notified about the same so that you can avoid using your credit card for further transactions.  This will help you in maximizing the credit card benefits.

  • Block your card when lost/missing: In case you have lost your credit card then you must reach out to your credit card issuer and get it blocked so that you do not fall prey to credit card fraud and pay the damages for something you haven’t done. Immediately contact the credit card customer support and request the credit card hotlisting.

 

Bottom Line:

To summarise, following the above-mentioned tips can actually help you in maximising your credit card benefits. Using a credit card wisely will only going to bear the fruits for you. Credit cards are like a coin having both advantages and disadvantages, if you use them properly then they can be your sweetest friend if not then your worst foe. So be cautious while using it. 

Additional Reading - Types Of Credit Cards In India

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