Credit cards come with numerous perks that include availing emergency loans, making online and offline purchases, converting high-value purchases into small EMIs, etc. According to a recent study, it has been derived that the use of credit card in India has reached a significant mark with 52 million active users, thanks to such increasingly user-friendly features.
Since credit card benefits make it easier to attain long-term goals, more and more individuals are looking for suitable options that can ease the process of financing. The requirements are not the same for everyone though. Therefore, one needs to go through extensive research to choose the right credit card. Additionally, to utilize all the advantages that credit cards come with, one should also be aware of the ways they can maximize his/her credit card usage.
Thus, here are some ways that can help reap the maximum advantages from these cards.
Focus on paying credit card bills in time
Before availing of one, choosing the right credit card is the ideal way forward, of which checking the repayment requirements is a must. Since delays can affect the overall CIBIL Score of an individual, doing so becomes all the more essential apart from ensuring healthy management of finances.
Additionally, doing so also helps to avoid additional costs like penalty fees, high-interest rates, etc., and maximizes card benefits.
Opt for suitable rewards
Since different credit cards come with customized reward programs, it is equally essential to select a card that comes with suitable reward programs as per your spending habits. Further, you must also know how to use credit card reward points.
One can avail of several benefits through various reward programs that these credit cards offer. The idea here is to ultimately choose a suitable option that helps utilize the accompanying benefits to the maximum.
Further, utilizing these reward points within time can help with savings on future purchases via cashback, vouchers, discounts, etc. One can also look forward to other offers like deals and discounts accompanying these cards.
Make use of the interest-free period
Since the use of credit cards in India has increased drastically over the past few years, it is safe to say that individuals are enjoying the perks that different credit card providers are offering. These benefits also remain convenient as long as one maintains the criteria set by several financial institutions, such as making timely bill payments.
While making bill payment within the due date is mandatory to avoid additional charges, making purchases keeping the interest-free period in mind can help utilize credit for an extended duration without any charges. Use your card smartly by making purchases at the beginning of the billing cycle to make the most of an available interest-free period and also to reduce your credit card interest payments with effective use of the card.
Avoid paying the minimum amount
While making the payment for a billing cycle within the following payment due date is mandatory, one should also choose to pay the total due to avoid additional charges. Even though choosing the minimum due option does not come with a penalty a charge, the remaining amount is subjected to an interest levy, thus increasing your repayment liability.
Further, such payment also affects your credit score negatively. Therefore, to enjoy the convenience that credit cards offer, it is better to pay the total amount due instead of the minimum due.
A credit cardholder should be extra cautious about the percentage of total credit available he/she is spending so that it does not affect the CIBIL Score. One should ideally not exceed 30% of the available card limit to keeping usage at optimum. Also, it is better to look for a credit card with multiple repayment options for increased convenience.
Alongside, when availing of the card, it is wise to check how to use credit card reward points to streamline redemptions for future savings. Further, to get the most of these benefits, one can opt for credit cards like the Bajaj Finserv RBL Bank SuperCard that also lets you convert your high purchases into small EMIs for easy repayment.
The issuer of the card also brings pre-approved offers that make financing hassle-free and time-saving. These offers are applicable on different financial products such as personal loans, business loans, credit cards, etc. You can easily check your pre-approved offer by providing necessary details like name and contact number.
Several offers and simplified accessibility to finances have made it easier for individuals to lead a convenient lifestyle, with the increasing use of credit cards in India explaining it all. However, it is advisable to check your credit limit suitability and set a proper budget accordingly to avoid delaying payments.