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6 Smart Tips To Maximise The Benefits Earned On Your Credit Card

Credit cards are ubiquitous in modern life, where cashless societies are highly encouraged. When these financial instruments are used well, they can offer an individual a wide range of benefits. Every online shopping site and e-commerce application accepts and rewards the use of credit cards with no interest EMIs, big discounts, and extra advantages. However, several people fail to take full advantage of these perks and hurt their financial strategy. To help you make sure that every credit benefit is unlocked, this article will address several tips and master hacks. So, let’s get right into it!

Tips to Make the Most of Your Credit Card

  1. Choose The Right Credit Card: The first step to maximising your credit card benefits is picking the right bank or financial institution. Credit cards offer various benefits, so it is important to pick one that suits your needs. For instance, if you frequently travel, you might want to consider a card that offers air miles or travel rewards for flight bookings in India and abroad. If you prefer cashback, look for a card offering more cash back on everyday spending.
  1. Take Advantage Of Sign-Up Bonuses: Many credit cards offer monetary bonuses upon applying to their new customers. These bonuses can range from cashback to rewards points and can be a great way to kick-start your credit card application. To take advantage of these bonuses, sign up for a credit card that offers a good bonus and meets the spending requirements to qualify for the bonus.
  1. Use Your Credit Card For Everyday Spending: One of the easiest ways to maximise the benefits earned on your credit card is to spend regularly with it. Using your credit card for groceries, bills, and other everyday expenses, you can earn rewards points or cashback on purchases you’d be making anyway. Just make sure to pay off your balance in full each month to avoid interest charges.
  1. Check For Additional Benefits: Besides reward points and cashback, many credit cards offer additional benefits, such as discounts on dining, shopping, or entertainment. Take the time to check your credit card’s terms and conditions to see what additional benefits you may be eligible for. You might be surprised at the savings you can make!
  1. Keep An Eye On Expiration Dates: Any reward points and cashback earned on your credit card usually have an expiration date. Make sure you keep track of when your rewards are due to expire, so you don’t miss out on any benefits. Some credit cards may allow you to redeem your rewards points for statement credits or other benefits, so check your credit card terms and conditions for details.
  1. Pay Your Balance In Full And On Time: Finally, settle your credit card bills regularly every month to avoid penalties and interest. Not only will this help you avoid interest charges, but it will also help you maintain a good credit score. Late or missed payments can have a negative impact on your credit score, making it harder to access credit in the future.

Benefits of Using a Credit Card

  1. Cashback and Rewards Programs: One of the most significant benefits of using a credit card is the rewards and cashback offered by most issuers. These programs can allow you to earn cashback or points for every purchase you make, which can be redeemed for rewards, such as travel, merchandise, or statement credits. Depending on the card, you can earn a percentage of cashback or points for every dollar spent, and some cards offer bonus rewards for specific categories like dining, fuel, or groceries.
  1. Building Credit History: Using a credit card responsibly is another tactical method to establish and improve your creditworthiness. By making timely payments and keeping your balance low, you can demonstrate to lenders that you are a responsible borrower. This, in turn, can help you secure better loan rates and access to other financial products in the future.
  1. Fraud Protection and Purchase Protection: Credit cards offer several layers of protection against fraud and unauthorised purchases. Most cards come with zero-liability policies, which means that you are not responsible for any unauthorised purchases made with your card. Some cards offer purchase protection, which can reimburse you for certain purchases if they are lost, stolen, or damaged.
  1. Convenience and Flexibility: Credit cards offer you autonomy over the way in which you make purchases and pay them off. You can use your card to make purchases online or in-store, and some cards can be used internationally. Many cards also come with mobile payment options, allowing you to make contactless payments with your smartphone.

Best Practices for Using a Credit Card

  1. Understand Your Credit Card: Before using your credit card, it is essential to understand its terms and conditions. Take the time to read the fine print, including the fees and interest rates associated with the card. Make sure you understand how cashback and rewards programs work, as well as any limitations or restrictions.
  2. Set a Budget and Stick to It: A vital aspect every user needs to stick to it. Determine how much you can afford to spend each month and make a plan to pay off your balance in full. This will help you avoid accumulating debt and paying interest charges.
  3. Keep no dues: To avoid penalties and other charges, credit card users must keep paying off their dues without crossing any deadlines. Interest charges can quickly add up and make it difficult to pay off your balance over time. If you can’t pay off your balance in full, make sure to pay more than the minimum payment due to reduce your overall interest charges.
  4. Avoid Cash Advances and Balance Transfers: While some credit cards offer cash advances and balance transfer options, these can come with high fees and interest rates. Avoid using these options unless necessary, and pay off the balance as soon as possible.

Final Word:

Now that you are aware of all how to reap the benefits a credit card provides, we hope you will revamp your approach. We hope that our article was able to help you gain information regarding the use of a credit card and how to go about it!

 

 

Brijmohan Goswami

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