The vast majority of us are crazy about credit cards. There’s a myth that credit cards are only available to the well-to-do, but today, a large percentage of the population has access to it.
Banks and credit card issuers provide credit card apply online, allowing an easy way to get the card without going anywhere. You can make instant purchases with a credit card and spread your bill payments as per the budget.
Credit cards not only help us with purchasing things, but it is also helpful in times of limited resources as well. This is why credit cards come with special deals and rewards to give you perks on your daily spending.
Credit cards have perks, but you need to use them wisely to reap the most benefits. Do you have a good grasp on proper credit card use? To know the answer to that question, read this article.
- 1 Tips and Tricks to make the most of your credit card:
- 1.1 1. To Request a Large Credit Limit
- 1.2 2. Think carefully about the benefits
- 1.3 3. Be on time with your credit card payments
- 1.4 4. Pay more than just the bare minimum
- 1.5 5. Don’t use your card at an automated teller machine
- 1.6 6. Consider whether you need that co-branded card
- 1.7 7. Credit card information should be kept confidential
- 1.8 8. Take note of the initial and subsequent membership costs
- 2 Attributes of Credit Cards:
Tips and Tricks to make the most of your credit card:
1. To Request a Large Credit Limit
Each person has a unique maximum credit limit. Request the maximum credit limit when applying for a new credit card. If your credit limit is high, you can make larger purchases and it will be beneficial for your credit score.
Since a high percentage of available credit increases the used amount, this reflects favourably on your credit history and makes it easier to obtain future credit.
2. Think carefully about the benefits
Certain types of purchases earn bonus points on credit cards. Some premium credit cards also feature perks like complimentary airport lounge access and prepaid gift cards as standard features.
There are two main types of gifts: one-time gifts and ongoing benefits. You should use the best credit card in India and accumulate points, trade it in for both monetary and non-monetary benefits. Please make the most of the perks and discounts your card offers by using it correctly.
3. Be on time with your credit card payments
This is common knowledge, but many people still ignore it at their peril. The interest rate charged by credit cards is extremely high. A heavy penalty will be applied if credit card bills are not paid on time. In addition, if you don’t pay your bills, that will hurt your credit rating too. Keep your credit score up and save money on interest by paying your bills on time.
4. Pay more than just the bare minimum
It is a common misconception that paying the minimum on a credit card balance is all that needs to be done to keep your account in good standing. Credit card online payments help you avoid late fees and this is a great way to pay off the entire balance.
5. Don’t use your card at an automated teller machine
With a credit card, you can get cash from an ATM. Don’t bother utilising this service. Withdrawing money from an ATM is permitted but comes with steep fees. You probably don’t want to shell out that much.
6. Consider whether you need that co-branded card
There are a lot of offers out there to get you to sign up for a co-branded card. Using a co-branded credit card effectively requires heavy use of the associated brand. That’s how their system of incentives works. Compare the best credit card in India before signing up for a card with such a rewards program, you should carefully consider the program’s pros and cons. Consider applying for a card if you believe it will improve your quality of life.
7. Credit card information should be kept confidential
Hackers develop schemes to steal credit card details. It’s up to each individual to better themselves through learning and to stay alert to emerging dangers. You should keep sensitive information hidden and safe, including your security pin, CVV number, one-time password, and expiration date. Make sure you always know where your card is before handing it over. Take care to only use your card at authorised terminals such as stores and banks. Your card could be cloned and used fraudulently if the transaction is not encrypted.
8. Take note of the initial and subsequent membership costs
There is usually an annual fee to keep a credit card active. Consider the card’s annual fee and any other charges that might incur before deciding on the best cards. The value you get from using the card must be greater than the annual fee. Furthermore, many cards offer fee refunds after meeting annual spending requirements. Keep an eye out for this fee-reducing perk to avoid losing yearly money.
Attributes of Credit Cards:
- You may be subject to an annual fee, depending on the credit card provider
- The interest rate is what you pay to keep a balance on a credit card
- For each purchase made with certain credit card eligibility, the cardholder receives a certain number of reward points, a cash rebate, or airline miles
- Your credit card’s credit limit is the maximum amount you can borrow using your credit card
- With a balance transfer, you can move your high-interest credit card debt to a more manageable interest-rate card
Finally, before you sign that application, make sure you’ve shopped around at various online card marketplaces to find the card that best suits your needs.