Finance

6 Smart Tips to Use Credit Cards to Your Advantage

credit card

According to the Reserve Bank of India, the total number of credit cards in operation was 44.2 million as of December, 2018. The number of transactions using plastic money at swipe machines increased each year by 28%. This spike in the usage of a credit card can be attributed to the increasing preference of individuals towards easier cashless transactions.

Leading financial institutions took into account this rising popularity of going cashless and introduced beneficially featured credit cards. Thanks to the competition among these companies, consumers are steadily drawing maximum benefits from these cards. The primary aim of the plastic money was to introduce a hassle-free payment mode.

However, with proper usage, credit cards can yield much more for users. Here are some tips to make the most of credit cards.

Tip 1: Pay the credit card bills on time

It is mandatory to pay the card bill on time to ensure that no substantial interest is charged on the outstanding amount. Additionally, this also creates a positive impact on your credit score. The score will be instrumental when you apply for another card or if you apply for a loan in the future. It is also a good habit to pay the total outstanding instead of the minimum amount to avoid accumulating unnecessary debts on your card.

Tip 2: Keep the credit utilisation restricted to below 30% of the credit limit

Each card comes with a pre-set limit, a maximum amount that can be spent using this card. A credit utilisation with 30% of the limit ensures a higher credit score, which promotes a better credit history.

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Tip 3: Redeem the reward points before their expiry

Most of the credit cards come with rewards points meant for the benefit of the customers. Credit card holders receive these rewards on purchases of a specified amount, as joining payments, etc.

However, these reward points come with a pre-set time expiry date. Thus, it is a good practice to keep track of the rewards points and utilise them before they expire.

Tip 4: Exchange the reward points for air miles

Customers can exchange their earned reward into air miles, discounts, cashbacks on specific goods and services depending on their preference.

Tip 5: Go for cards with more perks

Keeping in mind the benefit of customers, leading NBFCs like Bajaj Finserv offers their industry-first feature-filled Bajaj Finserv RBL Bank SuperCard. It gives customers the power of 4 cards in 1, those of a loan card, EMI card, credit card, and a cash card.

The card offers its customers with –

  • Interest-free cash withdrawal from ATMs
  • Welcome rewards of up to Rs. 20,000, movie ticket discounts/month, etc.
  • ‘Zero-fraud liability cover’ and ‘in-hand security’. This mitigates any chances of cybercrime while online credit card payment.
  • Bajaj Finserv privileges including attractive discounts and EMI options on the purchase of groceries, clothes, accessories, etc.
  • Loan repayment in 3 easy EMIs.
  • Getting instant cash through an interest-free loan against the card by converting the pre-approved limit on the card. This can be done through the mobile app of SuperCard.

Bajaj Finserv also provides pre-approved offers on credit cards as well as on business loans, personal loans, home loans and several other financial products. These offers simplify the process of availing a loan and save your time. All that you need to do is provide a few necessary details to check out your pre-approved offer.

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Customer can go for the credit mentioned in the above cards that will yield the maximum benefits.

Tip 6: Make easy purchases through EMIs

Online credit card payment is convenient because clients can opt for easy EMI repayment options. Through minimal, easy instalments, one can go forward with transactions as credit with just an eye towards a repayment in the future.

With the implication of the above tips, you can now make the best out of your credit cards. Additionally, these will also help you build a good credit score and hence a clean credit history. So, make smart use of your plastic money and use them to your advantage.

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