A credit card is a very useful financial tool that many people in modern times use. However, the users make some basic mistakes and this reduces the efficiency of the cards they have. If you are a regular credit card user, you must learn to use your card wisely and efficiently to get the highest value out of it. From getting a high limit to using the rewards properly, there are some excellent ways in which you can use your credit card to get a great deal of value out of it. Take a look at this article to know more.
- Get a higher limit – Are you aware of the fact that every credit card has a maximum spending limit? This limit could be as low as Rs 10,000 be as high as Rs 10 lacs. The limit is offered to a customer based on his financial history and earring patterns. You need to understand the limits you are eligible for and then choose the highest possible limit. When you have a high limit and spend very low, the difference between the two helps to push up your credit score. This is a tremendously useful advantage of a credit card that you can get when you ask the issuer to simply increase the limit on your card.
- Use your card when needed – Even if you have a high limit of a few lacs of rupees each month, be as conservative as possible with your credit card spends. Do not use your card impulsively. Only use it to buy the things you absolutely need. Many people make the mistake of binge-using their credit cards at every possible occasion. Avoid this at all costs as the more you use your card, the higher the bill would be at the end of the month. Be responsible with your spends and you will be able to get a valuable deal out of the card.
- Choose a card with appropriate rewards – Every credit card has a reward system associated with it. When you swipe your credit card, your reward points get accumulated. Some cards also offer rewards as you swipe. From getting free movie tickets to getting travel benefits, the credit card rewards are far and wide-ranging. Choose a credit card that has a suitable reward system. For example, if you travel a lot, choose a card that offers travel-related rewards. If you like shopping, get a card that offers shopping-related rewards. Maximise the rewards to get high value out of the credit card.
- Pay your bills on time – Unless you pay your credit card bills on time, it will not work in your favour. Make full and timely payments and clear all your dues each month. Stay away from minimum payments, missed due dates and other such dangerous things. When you miss a credit card payment, your credit score gets hampered. The interest also begins to pile up on your outstanding dues. All these factors begin to get complicated and pose many troubles for you in the long run. To avoid, all you have to do is be disciplined with your credit card bill payments.
- Protect your card details – Sadly, credit card scams and frauds are still quite common even to this day. People lose a lot of their hard-earned money due to credit card frauds. To prevent such things from happening to you, you must protect your credit card details very carefully. Never share the card details with anyone, not even your closest friends. When using the card online, make sure you only use the safest payment gateways. When paying at restaurants or gas stations, make sure the card is not taken away from your sight. These measures will ensure credit card safety and keep you away from the scams.
These are some handy tips that would help you to use your credit card efficiently.
To wrap it up
As you can clearly see from the points mentioned above, using a credit card properly has many benefits. A credit card is not just plastic money, it is also a passport for you to earn rewards, improve your credit score and save yourself a lot of trouble. So keep all the points mentioned above in mind and use your credit card in the best possible manner.
