Tired of carrying money everywhere? Want to go cashless and maximize your savings from your many expenses? Use a credit card as it is one of the most usable tools for saving money and going cashless. Credit cards have a feature that enables you to buy now, and pay later. Sounds alarming, right? You can make the payment by using the apply for credit card and pay the bill later, usually within 45 days.
However, if you do not use a credit card in your senses, they can also cause you in trouble and lead you towards heavy debt to pay. This is because there are huge fines in credit cards. If you pay your bill after the due date, you have to pay heavy fines. Virtual Credit Cards are a great option as well if you don’t want to use physical cards. You can buy virtual credit cards with balance online as well.
Here are some of the tips/ tricks/ do’s that you should keep in mind when using a credit card. We have mentioned the complete list of do’s to help you manage a credit card effectively and efficiently.
Do’s while using a credit card-
While using a credit card, take care of the following do’s.
- You should obtain a credit card with a low interest rate. If you are a person who frequently uses a credit card, choose the most cost effective one.
- Always use your credit card in a wise manner. You should not buy unnecessary or irrelevant items just because you have the pay later option. Use your credit card only in urgent situations when you do not have enough cash. Especially, if you are buying expensive items, measure the value of it and analyze whether you actually need it or not.
- Apply for credit cards that match your type of expenses. You should apply for credit cards that have maximum benefits in accordance with your spending habits. Therefore, while purchasing something similar, compare the offers provided by your credit card lender and do not forget to collect your reward points. For example, if you are a foodie person, you should have a credit card that has maximum offers on Domino’s pizza, Mc donalds, KFC, Subway and many more.
- Making payments with your credit card is easy but you should also take care of paying bills on a timely basis. Late payments will lead you towards heavy penalty fines. Also, making late payments on your credit card drastically reduces your credit score.
- It is crucial to pay your complete bill at a time. If you are not able to do so, make sure to pay the minimum defined amount so as to get free of penalties.
- If you are stuck in any emergency and forgot the due date, or missed a bill, you can take help of your credit card lender, inform them and make the payments. This will help you to get rid of the fine charges.
- There are many frauds that are happening using credit cards. You should take care of them and report to your credit card lender, if you suspect any such frauds. Make a habit of maintaining payment receipts and cross-check them with your online statements.
- Make a habit of reviewing your credit card statements. This will help you to know more about your expenses and purchases.
- Do not use too many credit cards as it will be difficult to review the transactions of each.
- While applying for a credit card, negotiate your annual charges or interest rates. You should always make sure of the fact that you are getting a good deal.
The Bottom Line
Now that you have read the complete list, you must have understood how to use the credit card wisely. Using a credit card in an enhanced way not only helps you to maximize your rewards, but will also help to be financially stable. Research about the best credit cards in India and go for the one that matches your expenses and spending habits.