Credit cards have a bad reputation, and most people consider it a worthy investment. A credit card is a type of a loan, where the money is borrowed from the card rather than debiting it from your personal account. However, several benefits are associated with credit cards as well. Using credit card responsibly will improve your credit score, and this will allow you to be eligible for the lowest interest rates on new credit cards and loans. We bring you a few tips on how to use credit cards and save from costly fees and high interest rates.
1) Make sure you have enough credit:
Using your credit card for all purchases requires you to have a credit large enough to support your spending. Make sure you are responsible enough while using the credit card. You can make purchases but also pay them in full and on time each month. With time, your credit card issuer will raise your credit limit. You can also pay off the amounts often during the month to free up credit so you can continue spending with your card.
2) Try not to withdraw cash:
Credit cards in India allow you to withdraw money from ATMs. However, it is advisable not to do so. There’s usually a fee associated with cash withdrawals, and it typically derives with a higher rate of interest and no interest-free period.
3) Keep a check on credit card limit:
The best way to check your monthly statement is to maintain all of your credit card receipts each month, then tick them off against the charges on your statement. It will help you keep a tab on the things you bought, and the fees applied. If you find your bill overstated, contact your credit card provider immediately and get it sorted.
4) Choose the best credit card:
You don’t have to approach your bank for a credit card. Lending institutions in the market issue various types of credit cards. Users may choose the one suited best to his/her needs and lifestyle. However, the very best deals are usually reserved for customers with a sound credit record. If you’re looking to make a big purchase, then a credit card with a 0% interest rate is what you need.
5) Cashing the rewards:
One of the popular benefits of using a credit card is receiving rewards at every purchase. You can score hundreds in cash rewards, miles, or points by using your credit card for all your monthly expenses. Of course, if your credit card issuer has a cap on the number of rewards you use, you may have to switch to another card to maximise the rewards you can earn.
1) Make sure you have enough credit:
Using your credit card for all purchases requires you to have a credit large enough to support your spending. Make sure you are responsible enough while using the credit card. You can make purchases but also pay them in full and on time each month. With time, your credit card issuer will raise your credit limit. You can also pay off the amounts often during the month to free up credit so you can continue spending with your card.
2) Try not to withdraw cash:
Credit cards in India allow you to withdraw money from ATMs. However, it is advisable not to do so. There’s usually a fee associated with cash withdrawals, and it typically derives with a higher rate of interest and no interest-free period.
3) Keep a check on credit card limit:
The best way to check your monthly statement is to maintain all of your credit card receipts each month, then tick them off against the charges on your statement. It will help you keep a tab on the things you bought, and the fees applied. If you find your bill overstated, contact your credit card provider immediately and get it sorted.
4) Choose the best credit card:
You don’t have to approach your bank for a credit card. Lending institutions in the market issue various types of credit cards. Users may choose the one suited best to his/her needs and lifestyle. However, the very best deals are usually reserved for customers with a sound credit record. If you’re looking to make a big purchase, then a credit card with a 0% interest rate is what you need.
5) Cashing the rewards:
One of the popular benefits of using a credit card is receiving rewards at every purchase. You can score hundreds in cash rewards, miles, or points by using your credit card for all your monthly expenses. Of course, if your credit card issuer has a cap on the number of rewards you use, you may have to switch to another card to maximise the rewards you can earn.
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