5 Ways to Smartly Use Your Credit Card

Credit Card is one of most common financial instruments that a large number of people use to perform a wide range of transactions at different places, including shopping malls, spas, grocery stores and online. Credit cards entail exclusive offers and rewards, by which users can save big on their shopping. There are many ways you can maximize the benefits from your credit card by using it smartly.

Here’s a list of 5 Ways to Smartly Use Your Credit Card:

1. Maximum Credit Limit

Credit limit allowed for one person may differ from another. If you are applying for a new credit card, you should make sure to ask for the maximum credit limit available for you. Higher credit limit for your credit card not only helps you to undertake higher credit transactions, but it also benefits your overall credit score.

2. Redeem the Rewards Credit cards give reward points to users for specific transactions. Few credit card companies give guaranteed benefits and gift vouchers, like free access to lounges, etc. In addition, credit cards allow users to redeem the accumulated points to get rewards in the form of both kind and cash. Understand the rewards attached to your credit card and do not forget to redeem them before they lapse.

3. Pay Bills on Time

Credit cards often impose a very high rate of interest on outstanding balances. Hence, if you fail to clear your credit card dues timely, you might have to make a big payment in the near future. In addition, defaulting on credit card bill payments hampers your actual credit score. Thus, to avoid additional outgoing interest and to maintain your credit score, you should make sure to clear dues before due date.

4. Scrutinize Your Credit Card Bill

Other than timely payment of the credit card bill, you should make sure to scrutinize the respective itemized bill of your credit card transactions during the last billing cycle. You must check all individual transactions, interest rate, late payment fee (if any), in detail. And in case of a discrepancy, you must follow through with your credit card company.

5. Follow Basic Steps

Lastly, you should follow a few basic steps to secure the details associated with your credit card. These include security pin, OTP, CVV number and its expiry date. Moreover, you should swipe your card only in ATMs and in POS machines, as an unsecured swipe may result in misuse or duplicating of your credit card.