Credit cards today have become one of the most popular financial tools which not only helps us manage our finances better but also gives us access to a wide range of benefits which including discounts, bonus prizes, reward points, and other exclusive offers. However, it is also essential to ensure that the credit card is used judiciously to avoid falling into a debt trap and defaulting on payment. While timely payment of credit card bills can help build the credit score, not paying bills on time can have a negative effect on the credit score which in turn will affect your ability to seek any kind of loans.

Here are thus some of the top tips by which you can ensure that you use your card wisely and take better control of your finances -

Bill Payment

Every credit card lender offers what is known as a credit cycle which usually lasts for a month. During this billing cycle, you can make all your purchases within your credit limit and at the end of which a bill of all the purchases made by you is generated. After the credit cycle is over, a grace period for a few days is offered for settling the bill. It is best to pay the entire bill within this period. If you fail to do so, then your credit score goes down and you also have to pay a heavy penalty.

Credit-Card Utilization

Of the credit card limit that is offered to you, ensure that you use only as much as you need and keep it within 10-30%. You can also use more than one credit card to not just spread your purchases but also build a strong credit score over time. By keeping the credit utilization low, you will be able to manage your expenses better and prevent yourself from going into a debt.

If you are searching for a credit card, then you can check out the RBL Bank Super Card. The benefit of using this card is that apart from the regular benefits offered by other cards, it also provides the benefits of four cards in one, i.e. cash card, loan card, credit card, and EMI Card.