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

Comments

Post a Comment

Popular posts from this blog

How To Get A Good CIBIL Score Without Any Credit History?

Image
A credit score or CIBIL score signifies your credit behavior and shows how you have performed while paying back the loans or while using a credit card. All these activities are stored in the form of credit history and this history is used to set a matching score for your profile. A good CIBIL score increases your chances of getting a loan or a new credit card. But what if you never had any loan or used a credit card? Simply put, what if you never had a credit history? Well, the simplest way to answer this is that you will not have any credit score. There would be no numbers in your score, rather it is shown as NA or NH (No history).  In this article, we are going to talk about the ways by which you can get a good CIBIL score in case you don’t have any credit history.  Apply for a Credit Score: The first and the simplest way to start building a good credit score is to get a credit card. A credit card is one of the best financial products ever made. The card is issued with a pr...
Read more

What are Club Vistara Points and how do they work?

Image
Club Vistara is the frequent flyer program of Vistara, an Indian airline company that operates mainly in India, with international flights to some countries. The Club Vistara program offers numerous benefits to its members, including the ability to earn and redeem Club Vistara Points. In this article, we will take a closer look at Club Vistara Points and how they work.  What are Club Vistara Points?  Club Vistara Points are reward points that members of the Club Vistara program can earn by flying with Vistara or by spending on their co-branded credit card, the Axis Bank Club Vistara Credit Card. These points can then be redeemed for a range of rewards, such as flight tickets, upgrades, and merchandise. How do Club Vistara Points work?  You can earn Club Vistara Points based on your membership tier and the fare class of your ticket. The Club Vistara program has three membership tiers: Club Vistara, Club Vistara Silver, and Club Vistara Gold. The higher your membership tie...
Read more

The Benefits of a Cash Back Credit Card

Image
Cashback credit cards have gained popularity as one of the many types of credit cards available to us. With their numerous benefits including convenience, security, and rewards, credit cards have become an essential part of our daily lives. Specifically, cashback credit cards are gaining prominence for their ability to offer rewards in the form of cash back for purchases made using the card. In this discussion, we will explore the advantages of using a cashback credit card.   Rewards for Everyday Spending The primary benefit of a cashback credit card for Indian consumers is the rewards for everyday spending. Firstly, cashback credit cards offer a percentage of the purchase price as cashback. Additionally, the cashback can be earned on all purchases or specific categories such as fuel, groceries, or dining out. For example, if you have a cashback credit card that offers 1.5% cash back on all purchases and you spend Rs. 75,000 a month, you can earn Rs. 13,500 cashback every year. Th...
Read more