In the present day world, plastic money has become an integral part of our financial lives. However, more often we find it difficult to manage our Credit Cards. It is for this very reason that we are laying down 21 tips that will help you master the art of using your cards to perfection.
1. Choose an Apt Card
Before you go ahead to Apply for a Credit Card Online, make sure you pick a card based on your spending behaviour. Whether you are an avid shopper, a travel lover, or someone who spends mostly on groceries and bills, you can always find a card tailor-made for you, and offers you the maximum rewards.
2. Go for Maximum Benefits
We aren’t merely talking about the rewards offered by your card here. By maximum benefits, we mean low-interest rates and no balance transfer rate.
3. Know all about your Card
Make sure you read the entire fine print and understand all the terms and conditions. This will ensure that you have a better understanding of using your card favourably.
4. Know the interest rates
The interest rate on usual billings of the Credit Card is often different from the rate charged on cash withdrawal. Then again, when you pay above the minimum, the payment will be divided among balances with different rates. In-Depth knowledge of the interest rates will help you manage your payments more efficiently.
5. Understand the additional charges
Most Credit Cards come with specific costs such as – annual fee and balance transfer charges. In a majority of cases, you can get a waiver on these charges if you use the card as per the conditions laid down by the issuer, thus allowing you to use the card for free.
6. Pay heed to your Credit Card statement
There may be some discrepancies regarding your outstanding bills, your payments and even some fraudulent transactions in your Credit Card statement. Hence, make sure to read it thoroughly
7. Go Online
With dedicated websites and mobile applications, managing your cards right from viewing monthly statements to making and scheduling payments, everything has become much more convenient. Hence, make sure to use this facility.
8. Understand the billing cycle
As per the regulations, it is the responsibility of the card issuer to ensure that the due date for payments is the same for every calendar month. Moreover, it is mandatory for them to send you the statement at least 21 days before the due date.
9. Avoid overuse of the Credit Card
Credit Cards offer financial freedom, but only to the point till they are used judiciously, and the bills are paid in time. Once you start overspending and without paying the balance in full, it won’t be long before you get burdened with debt and bad credit.
10. Ensure timely payments
Not only will paying the bills in full ensure that you don’t end up paying a late fee and interest on overdue payments, but it will also help you maintain a good credit score. To do so, opt for automated payments, or set a monthly reminder on your phone.
11. At least pay more than the minimum
If somehow, you’re unable to pay the pills in full, try paying as much amount beyond the minimum payment, as possible. This will ensure that you do not end up paying hefty amounts in interest.
12. Pay off, one card at a time
In case you won two or more Credit Cards, and have balance payments racking up on all of them, pay off the credit on one card at a time. While doing so, pay the minimum amount on the remaining cards. Keep doing so, till all your cards are paid off in full. However, try to manage your finances such that you never fall into such a pit.
13. Check your balance regularly
It is a good habit to keep an eye on your card balance from time to time, especially before making any significant purchases. This will ensure that you do not end up overspending, and exceed your credit limit.
14. Keep your spending habits in check
No matter what your credit limit is, it is incredibly crucial that you spend only what you can pay in full. Hence, draw a budget for yourself ahead of time, and stick to it at all costs.
15. Ensure the accuracy of payment records
Quite often it so happens that your payments are not accurately registered against your Credit Card bill, thus leading to discrepancies in the balance payments. To avert such a situation, make sure you always cross-check the same after every payment.
16. Avoid using cash advances
The interest charged on cash advances is the highest when compared to other Credit Card transactions. Moreover, this facility is almost always accompanied by a fee and don’t allow a grace period. Hence, unless absolutely necessary, never opt for cash advances.
17. Feel free to contact customer service
In case, you are facing any trouble using your card, or enjoying its benefits, don’t shy away from getting in touch with the customer care service. Same holds true, if you spot any discrepancies in your account, or have lost your Credit Card. Then again, if you wish to make any requests regarding your card, you know where to call.
18. Report Fraudulent Charges
If you notice any transactions on your account that you don’t recall of, make sure you report the same to the issuer. You must do so, even if the transactions involve small purchases. More often than not, thieves use your card for little expenses to confirm its validity. Once they’re sure of the same, they use it for more significant purchases. Hence, you ought to beware of any unwarranted expenses on your card.
19. Avoid using more than two cards
When you own too many Credit Cards, it becomes almost impossible to manage them all, without falling short on bill payments. Hence, make sure you only have as many cards, as are easily workable for you.
20. Understand the consequences of your usage
Every time you make a purchase using your Credit Card, you are borrowing a sum of money from your future income. You ought to understand this and use your card judiciously, lest you may end up in a debt that is difficult to pay off, without adversely affecting your financial freedom.
21. Cancel a card, if you need to
In case you are not happy with the benefits that your Credit Card offers or feel that the card levies an exceedingly high-interest rate, we recommend you cancel the card. While this may have a small impact on your credit history, if you make sure that you pay the balance in full, and that the issuer closes the card well within time, you can conveniently get back to your original standing concerning your credit score.
We hope that you now know some easy-to-follow tips for mastering the art of owning Credit Cards and benefiting from them. So, wait no more. Just opt for the readily available service of online Credit Card application, and get the card that best suits your spending habits and your preferences!
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.
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