Credit cards offer users with the ability to make transactions and purchases from a pre-specified line of credit without the need to have those funds available. These cards also come with additional benefits for users including vouchers and discounts on specific purchases other than reward point programs.
Here are 5 ways to get the best of your credit card –
- Know your cards features –
Know all the terms and condition associated with your card before you get one. Inquire about the interest rate, grace period and credit card eligibility criteria. Also, check the credit limit and other additional features as well thoroughly before finalising it. Along with this information, make sure to gather knowledge on the late payment fees, transaction fees, etc.
- Analyse your finances –
Evaluate your liabilities, assets and future income before you get a credit card, so that you can plan your bill payments. Also, cut down on your cost of living to save money and never default a payment. Analyse your necessary daily expenditures and search for areas where you can spend less.
- Do not use more than 30-40% –
If you want to know how to use a credit card wisely, limit yourself to using 30-40% of the credit card limit. Also, maintaining this credit card limit will help you improve your credit score, which is an essential component of the credit card eligibility criteria. Along with maintaining your credit score, restricting yourself to 30-50% will help you avoid the accommodation of dues thus reducing the burden from your pocket.
- Pay on time –
Remember to pay your dues on time so that no extra charges like late-payment fees are imposed on your debts. Also, paying your dues on time will help you build a strong credit history. Having a good credit history will help you fulfil the credit card eligibility criteria when you apply for other financial tools or products such as another card or a loan in the future. Make sure you know how to read your credit card statement correctly before making any payments.
- Credit card rewards –
For every transaction you make using your credit card, you will earn rewards in the form of loyalty points. These points can be redeemed in your next transaction. However, the reward points may vary; such as, some credit cards offer higher points for online transactions than offline transactions while others may offer reward points on flight bookings, etc. Thus, inquire how you can earn these credit points and make your transactions accordingly.
Thankfully, there are many financial institutions and NBFCs like Bajaj Finserv which provides attractive reward points on every transaction made through the card. The Bajaj Finserv RBL Bank SuperCard, is one such card that comes with several benefits such as robust security, instant approval, ATM cash withdrawal at zero interest, welcome rewards, etc.
Bajaj Finserv also provides pre-approved offers on credit cards to make the application process hassle-free and help you save time. Pre-approved offers are also available on home loans, business loans, personal loans, and on several other financial products. You can check your pre-approved credit card offer by providing minimal details such as your name and contact number.
To make the most from your credit card, always remember to inquire about its features and benefits. Also, make sure to repay the dues before the due date to avoid attracting interest rates and a negative impact on your CIBIL score. Use the card wisely so that you can easily meet the total outstanding amounts on your statement each month.