While a credit card can prove to be an amazing tool for managing your finances in an effective manner, it will not prove to be as beneficial if you are unaware of the ways in which you can avail the advantages of credit card. But when used correctly, it can help you enjoy multiple credit card offers on a monthly, annual, and seasonal basis.
These offers can range from bonus points to cashback offers, no interest ATM cash withdrawals to huge annual savings. At the same time, being mindful of your credit card spends is also equally important otherwise you might land yourself in a lot of debt.
So, how to use a credit card the right way? Here are seven ways in which you can avail more advantages of credit card:
- Choose a credit card as per your spending habits
If you want to access all credit card offers that seem relevant for you, it is necessary to ensure that you’re using the right one. Your spending habits play a huge role in determining the right credit card for you. Before you apply for a credit card, sit down, and analyse your spending habits and make a list of the credit card offers that will serve them best.
For example, say your credit card offers great fuel benefits but you are someone who doesn’t have a daily commute, this benefit hardly makes sense for you.
- Get multiple credit cards
Today, there are various kinds of credit cards such as travel credit cards, fuel credit cards, rewards credit cards, shopping credit cards etc., differentiated by the various kinds of benefits they have been designed to offer.
Now, one way to ensure that you benefit from the different offers is to own multiple credit cards. Another way is to choose one card that has the features of multiple cards. For instance, the Bajaj Finserv RBL SuperCard brings the power of 4 cards – credit card, loan card, cash card and EMI Cards – in one super card.
- Use credit cards regularly
Regular use of credit cards has dual benefits. First, it helps in maintaining a good credit score. And second, you stand a chance to unlock better cashback offers, higher reward points and discounts. However, it is also advisable to pay your credit card bills on time to avoid paying late fees and higher interest rates.
- Keep a check on the benefits
One key thing to do as a credit card holder is to stay aware of all the benefits that your credit card offers. This holds true not only before applying for the card but also after it has been approved. Most credit card issuers run limited period offers, several times a year that you might end up missing if you’re not aware of them.
- Reward points redemption
Make sure that the credit card you choose offers multiple ways to redeem the reward points in terms of lifestyle products, flight tickets and further discounts. Often, issuers also offer the benefit of redeeming your reward points through credit card bills which is one of the most amazing advantages of credit cards.
- Understand your billing cycle
Credit cards have their unique billing cycles. If you develop a clear understanding of your credit card’s billing cycle, you can use it to your advantage by timing your purchases so that they coincide with the interest-free period, right after your bill is generated.
- Use your credit card prudently
As important as it is to be aware of the advantages of credit cards, it is equally important to monitor your credit card expenses. Certain features of your card, such as emergency advance, are there to help you in the time of emergencies and you should, therefore avoid using these benefits for frivolous purchases. Building healthy spending habits is a crucial part of availing more.
Credit cards bring with them numerous advantages, all you need to do is be aware of the offers and use them to your benefit!