Credit cards are easy and safe than carrying cash. It is also used in smart way to protect you from fraud. Credit cards means buy now pay later and it helps in financial needs. Thus, credit card also come with various offers and rewards which save your money. You can see best way to use credit card in India. For better understand check 7 tips for how to use credit cards wisely. Here are 10 tips to use your Credit Card.
Request for high Credit Limit
Credit limit is different for each individual. If you select for new credit card you ask your card issuer to increase credit limit. But high credit limit also improve your credit score. Check 5 Steps to save money with credit cards
How to Use Reward Points
Credit cards come with benefits like cash back, discounts etc. You need to take such offers to save your expenses on your shopping. Credit cards also gives you reward points for spending. So, you can redeem reward points that you add on buying to avail discount on transactions Also, these reward points have validity period. If you do not redeem credit card reward points before expiry date it gets wasted.
Pay Due Amount on Time
When you get your credit card statement check due date and make sure you pay on time. This will help you to avoid extra interest charges or late payment fees. If you do not pay outstanding amount on or before due date you are charged with an interest rate.
Thus, if you fail to pay minimum due amount your CIBIL score will get negative impact. You can give auto debit instruction to your bank for making credit card payment on specific date after bill is generated.
Maximize your credit card repayments
You can do minimum amount on your card each month. But you need to pay lot of interest and it take years to pay off your credit card debt. So if you are struggling to pay more than minimum amount you can switch your card with low interest rate. You can check Difference between Credit Report and Credit Score
Avoid withdrawals cash
Withdrawing cash from ATM using credit card is your big mistake. It has high rate of interest per month and there is no grace period for money withdrawn from ATM. Avoid cash withdrawals from ATMs through credit cards because you will charge high. When it comes to cash withdrawal use Debit Cards to save unnecessary interest. Check terms and condition carefully to make savings.
Do ask yourself if you need co-brand card
Co-branded cards are partnerships between card issuer and service provider. Like retail outlet, airline or Fuel Company and they carry name of third party. They give benefit when you buy products from third party. So, if you use co-branded airline card you will earn flying reward points.
You can tempt to take co-branded card. Before signing for card you need to check rewards carefully. Thus, you can choose card which helps in your lifestyle. You need to understand more about these brand cards and how they can suit your lifestyle. There are many types of credit cards available in market with benefits. You must pick card that suits your needs.
Secure your Credit cards
Scammers find new ways to defraud credit card users. You have to know basic measure to keep your security details safe. Such as security pin, CVV number, OTP and expiry date. There are various techniques to steal your card information. You do not swipe your credit card in any place except POS machines and ATMs. Thus if you swipe in unsecure places it can be misused.
Credit cards have both renewal and joining fees. If you are looking for card then see fee structure because there is no fee for cards. Yearly if you spend amount then your card has fee reversal. Thus, you look for this reversal benefit to save annual fees.
Read your credit card bills
Your credit card statement carries all charges, interest and penalties levied by Credit Card Company. You must read this document without missing. If there is any mistake in statement you must immediately report to Credit Card Company. Smart usage of credit card not only saves your money but also improves your credit profile along with financial status.
If you need take loan
Based on your credit history you will get unsecure personal loans. If you need financial help do not look for loans use your credit card. You must take time to understand your card fee structure, penalties, interest rates and reward points. See financial counselor who can help you to sort your debt issues on credit cards.