7 Ways You Can Use Credit Card Wisely

India is quickly turning into a cashless economy. As there are over 25 million credit cards users in India at present. With a myriad of options and not enough information on how best to use it, the whole thing can quickly go south.

Similarly, credit card companies are also out to make a profit for themselves thus, it might be difficult to assess how best to use your credit card. Thus, it is important to learn about a few tips and tricks of the trade.


1. Choose the Ideal card for you

Different credit cards are targeted at different groups and categories. There are separate credit cards focusing on expenditure on fuel, shopping, airlines and more. You need to look into your spending and get the card which makes the most sense for your lifestyle.

2. Keep your spending in Check

Once you get the hang of it, it is really easy to keep swiping for each and every expense. However, this will only cause you problem as your credit bill may get out of hand. To prevent this, set up mobile alerts and make the habit of checking your bank statements on a regular basis.

3. Pay your bills in full

If you want to have a higher credit score, you should always opt to pay the monthly credit card bill in full. One of the biggest mistakes Indians make is delaying their credit bill payment. You should only use the card when you’re sure that you can pay off the bill in full at the end of the credit period.

4. Implement a personal credit limit

The first thing that you should do after you obtain a credit card imposes a credit limit on your self. You should never spend more than 20-30% of your credit limit. Credit utilization is one of the factors that goes into the making of your credit score, so spend wisely!

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5. Get multiple Credit cards

Too much of anything can do you more harm than good. However, in case of credit cards, it might be a good idea to get more than one. By using card specified for certain purposes like Airline card, Fuel Card, Shopping card, you not only distribute your expenses to stay in check for the 20-30% spending margin but also cut down on cost with the help of different offers and exclusive deals on those cards.

6. Know what to do in case of lost card

The first thing you should do If you lose your card is to act quickly. Contact the bank at the earliest and keep your bank information safe. This will be helpful in case someone tries to take advantage of your card for fraudulent purposes. Thus, you should always report about a lost card at the earliest.

7. Redeem your reward points

You should never let rewards from your spending go to waste. Once you have collected enough points, you should try to shop from the bank’s specified outlets. This lets the bank know that you are spending enough to get rewards making you a valued user for them.

These tips will help you use your credit card sensibly and make the most of it. Use wisely!

1st published on crazycreditcard.com

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