Even with the sharp increase in the usage of credit cards, there still exists common refrain, more so due to the mismanagement of piled up credit card debts in many cases. Unplanned use of a credit card can lead the cardholder into a debt trap. However, credit cards come with a whole range of offers and rewards, which can add value to the user to a large extent.
Thus, irrespective of whether you are in the stage of application understanding how to apply for a credit card or already a card owner, you must be aware of ways that can help multiply your card benefits. Take a look at some of them mentioned below.
Few ways to take advantage of your credit card
Here are a few simple things to keep in mind that would ensure that you can make the most out of your credit card –
- Try to make regular expenses through credit card
If payments for regular expenses are made through a credit card, such transactions can be effectively tracked. Moreover, one can draw emergency liquidity from a credit card in case of fund shortage. Availing a personal loan or overdrawing from a bank account comes at a much higher cost, pitting credit card loans as affordable funding alternatives.
- Use credit cards during online transaction instead of debit cards
Using debit cards involve a higher risk when initiating an online transaction. For one, online frauds can leave a sizable financial setback as a result of defrauding the individual of the account’s entire balance.
Contrarily, one of the major credit card advantages is that they come with robust security features such as zero-fraud liability cover to keep the cardholder protected against losses from cyber threats. Also, online transactions made with credit cards can help earn accelerated reward points and enhance future savings.
Individuals who do not yet hold a credit card can apply for one to enjoy such benefits. When considering how to apply for a credit card, you must know that the process can differ among different credit card companies.
For instance, financial institutions like Bajaj Finserv provide pre-approved offers to their existing customers to facilitate a simplified application process. These offers are available on several financial products, such as credit cards, personal loans, etc. You can take a look at your pre-approved offer by providing details like your name and contact number.
- Convert dues into easy EMIs to avoid interest charges
When a big-ticket purchase is made through credit card, it is advisable to convert credit card purchases into EMIs. Such conversion offers credit card advantages in the form of efficient financial management, thus minimising the chances of interest payment.
Other applicable charges should also be kept in mind when planning on how to apply for a credit card.
- Make bill payments in full
Carrying over the bill amount in the next billing leads to a levy of interest at high rates. Moreover, the interest imposed is not restricted to the remaining balance and is applicable to subsequent purchases. You must thus make it a point to make bill payments in full. When using cards like the Bajaj Finserv RBL Bank SuperCard, you can choose from a range of online as well as offline options for convenient bill payment.
- Keep track of reward points
When in the stage of considering how to apply for a credit card, one should also know about the credit card reward points on various transactions. Planning your purchases and opting for a card as per your spending requirements can, among other initiatives, help get the most out of your credit card.
- Check credit card statement regularly
It is only when the credit card statement is checked on a regular basis will the discrepancies be identified. You must thus tally each transaction with items mentioned in the credit card statement. There are a few particular aspects which should be noted while checking the credit card statement –
- Any unusually high charge.
- Duplication of expenditure recorded.
- Charges from unauthorised sources, etc.
If these pointers are being adhered to, then a credit card can help derive maximum benefits in terms of managing finances. The regular cash requirement can be conveniently managed by way of credit card, with the monthly bills paid in time for credit limit restoration.