Smart Tips On Using Credit Cards To Your Advantage
Friday, June 14, 2019, 6:00 AM | Leave Comment
A lot of people have the required credit card eligibility, but they keep away from applying for one. Even if some people have credit cards, they don’t use it to stay away from indulging in over-spending.
While credit cards may lead you to debt traps if you don’t use it smartly, it also brings many benefits with it.
If you are unsure of how you can use it in your favor, then this article will lead you to some smart tips.
Continue reading, and you will know more:
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Choose a credit card as per your spending habits
Most of the credit cards come with cash back, discounts and reward points. However, you should analyze your spending patterns and opt for a card that gives you maximized benefits on your transactions. Example – if you fly frequently, then you should opt for a credit card that offers free air miles and free lounge access.
Similarly, if you have a two-wheeler or a car, then you should opt for a credit card that offers you the fuel surcharge waiver benefits. Thus, analyze what your needs are, and pick a credit card as there is one available for all your requirements.
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Use your credit cards for daily spends
The accumulated cash back, discounts and rewards on your credit card transactions can help reduce the cost of your purchases. Also, regular use of the credit card will also help in building or improving your credit history.
The only thing that you need to take care of is paying the credit card bills in full by the due date. Not doing that same will attract high-interest costs, ranging between 18-48%.
Also, being unable to pay the credit card bills on time will lead to a negative CIBIL Score.
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Covert your big-ticket purchases into EMIs
Did you wanted to bring home a 54-inch LED TV for your large hall in your home using your credit card, but gave up the idea thinking it will lead to expenses? You can relax and fulfil your wish while still not paying the full LED TV bill at a time.
The credit card comes with the EMI facility to convert your big-ticket purchases into easy EMIs. As a result, you only need to pay a fixed EMI amount and don’t need to stress about hurting your monthly budget.
However, for converting a transaction into EMIs, your credit card company may charge you between 13-15% as interest charges. It may lead to an overall increase in the price of the purchased product. Nonetheless, paying a certain amount per month is still convenient than paying all amount at once.
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Redeem reward points before the expiry date
You should also know that the reward points provided by your credit card issuing company do not last forever. They are bound to expire after a scheduled period. Thus, you should keep track of them and ensure to redeem them before expiry.
Some of the smart tips to help you make the most of your credit cards are now revealed to you.
If you have the required credit card eligibility, you can apply for a credit card as per your needs and repayment capacity.
All that you have to do is share your basic information like name, age and mobile number and discover your pre-approved offer now!
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Gaurav khanna is an experienced financial advisor, digital marketer and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.
