Credit cards are a convenient method of paying for your purchases without spending anything out of your pocket. They offer you a short-term instant credit along with flexibility and additional security on your transactions. You can also earn cashbacks and reward points by spending on your credit card.
However, it’s imperative to use your credit card wisely, so as to avoid unnecessary charges, and make the most out of its benefits. If used indiscriminately, your credit card can even land you into a pool of debt. So, here are some tips to help you use your credit card judiciously:
Choose a credit card as per your needs
There are various credit cards available in the market, with distinct features and benefits. So, you need to identify your spending pattern, and then apply for a credit card that will suit your needs the most and provide you maximum benefits. For instance, if you travel frequently, you can look for a credit card that offers air miles, hotel bookings and lounge access at airports as rewards.
Bajaj Finserv RBL Bank SuperCard comes loaded with industry-first features and benefits such interest-free cash withdrawal at ATMs and a pre-approved loan limit, to cater to all your short-term monetary requirements and even avail instant funds during an emergency.
Pay your bills in full and on time
Though you get the option to pay minimum balance against your credit card each month, you might end up paying huge interest on your dues. It’s prudent to pay the full outstanding amount within the due date each month as credit cards do not charge any interest on timely payments.
Apart from interest charges, late payment of credit card dues affects your credit score negatively, which may hamper your chances of getting a loan in the future. You can set-up a reminder on your phone or sign up for automatic payment of credit card bills through your savings account in case you tend to forget your due dates for credit card payment.
Claim your bonus and reward points before they expire
Many credit cards offer lucrative cash-backs and reward points on paying utility bills, movie ticket purchases, fuel expenditure, restaurant bills and so on. If you utilise your credit cards actively, you can earn opulent reward points and bonus prizes with your transactions. However, most of the credit card rewards come with an expiry date and it’s important to redeem them before they expire to get the most out of your credit card.
Beware of frauds and use your credit card smartly
Due to the rise in credit card scams, it is recommended to opt for a high-security credit card fitted with a new-age chip, instead of metallic strip cards. Such cards are less susceptible to fraud as each transaction at every step requires a PIN. Also, beware of fraudsters and never reveal your PIN, CVV or OTP to anyone. Additionally, conduct online transactions through a secured network by using your personal smartphone or computer.
Credit cards are a convenient and smart method of paying for your various needs and luxuries. However, you need to use it wisely in order to avoid any extra charges and scams.
