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 prefixed cr
Read more

How To Use A Credit Card Wisely- 7 Tips

Image
Adding a credit card to your wallet is an important decision but using it wisely tops the list. You need to use your credit card wisely so that you can maximise the benefits. The first and foremost important thing is to have the right credit card and then use it in such a way that you can earn incentives in return. You need to compare credit cards online so that you can choose the right credit card for yourself. In this article, we have covered 7 tips on using a credit card wisely that you must know. Keep reading to kick start your research. Choose the right credit card: To use a credit card wisely, you must have the right credit card. With that being said, it becomes more important for you to select the right credit card. For this, you need to first identify your needs and spending habit and then start choosing the credit cards which compliments them. Then compare the selected ones to narrow down your choices to one credit card. Use the card to earn re
Read more

What Happens If You Miss a Credit Card Payment?

Image
  It is not a good thing to miss a payment but yes, it is common and normal. People have too many things they worry about so it is easy to forget a credit card payment. Delayed/ or missed payment consequences are determined by its lateness plus a credit card's rules. Users run the danger of losing money from late payments, paying extra interest, but also having their credit scores suffer. Issues that could arise from failing to make a credit payment: Issuers may charge you a sizable late fee: Users are assessed a fine by the credit card company if they don't settle their payments by the deadline. The subsequent credit card statement will include the above-delayed charges. The amount of time users missed their fees, your prior record of missed fees, as well as various circumstances can affect the late fees that each card issuer imposes. Your credit score may suffer: None of it may show on the credit file should a person miss a payment by only a couple of days but pay it back on
Read more