How to Use Credit Cards in a Smart Way?
Credit requirements, as well as credit options, have evolved over the years. Individuals today are financially savvy and look for ways to maximize the benefits from their credit cards.
Ways to maximize benefits from using a credit card
There are several ways to do so by knowing how to use credit card smartly. The first way is to use the right card for the right purchase if you own numerous credit cards. For example, a travel credit card should be used while booking flights or hotels. A certain grace period is also provided by issuers during which, you can make an expensive purchase and not have to pay interest on it. This grace period can extend up to 50 days.
A financially responsible individual sets his own credit limits to make sure he spends lesser than the stipulated amount. Paying your credit card bills on time also increases your financial credibility and results in a better CIBIL score.
To manage your finances better, you must also check your credit card statement frequently. This helps in studying the spending patterns and rectifying them if needed.
Redeeming credit card rewards wisely is also a must. Avail benefits on other purchases by using the rewards points accordingly.
You can also reduce interest liabilities by not withdrawing cash from ATMs as it calls for an additional transaction fee along with interest charges. However, credit cards like the RBL Credit Card provide you interest-free ATM cash withdrawal for up to 50 days.November 18th, 2019