Credit cards make access to short-term credit convenient. However, that’s not where their benefits stop. Banks offer several categories of credit cards to customers that provide cashback benefits, rewards, and discounts based on their spending patterns. Assessing these benefits before you apply for a credit card can help you select the right card that suits your lifestyle.
How can you get the best out of your credit card?
Let’s look at some tips on how to make the most out of credit cards.
- Apply for a credit card online: You can easily apply for a credit card Some banks like IndusInd Bank offer a 100% digital application process and instant approvals. To sign up, you must simply input your basic details, choose the credit card of your choice, and complete your application by completing the video KYC procedure. You can make the most of features like lifetime free credit cards when you apply online. For instance, IndusInd Bank’s EazyDiner Platinum Credit Card has no annual fees and no joining fees.
- Choose a credit card that offers more rewards: Your credit card must also benefit you through rewards and cashback offers. Credit card rewards are generally divided into categories, and you must go through each of these categories to check if your card provides them. Travel credit cards focus on travel-based rewards such as complimentary lounge access at domestic and international airports. Lifestyle-based rewards help customers access various services at a discounted rate through their credit card. Credit cards also offer the benefit of a fuel surcharge waiver across major fuel stations across India.
- Read the terms and conditions carefully: You must read the terms and conditions laid down by the card issuer very carefully, especially the details of credit card fees. You should also be aware of your credit limit, applicable interest rate, and billing cycle.
- Time your purchases to make the most of the interest-free period: It is also advisable to time your purchases if you are aware of your credit card’s billing cycle. You can enjoy an extended interest-free period if your card has a monthly billing system, and you make a purchase after the bill generation.
- Pay your dues on time: It is very important to pay your credit card dues on time to avoid an accumulation of credit card debt. Paying your credit card bills on time also helps build a good credit score.
- Avoid overutilising your credit limit: It’s advisable to keep your credit utilisation up to a maximum of 30% to maintain a good credit score. For instance, even if your approved credit limit is ₹1 lakh, you should avoid using more than ₹30,000 in any given billing cycle.
- Never use your credit card at unauthorised stores or websites: You must always use your credit card at trusted merchants to keep your personal details secure.
- Regularly check your credit card statements: The credit card issuer generates a credit card statement every billing cycle. You must check these reports to track your spending, identify unauthorised charges, and avoid exceeding your credit limit.
To sum up
Credit cards make a range of transactions convenient, from buying things on EMI to international payments. In addition to that, they offer a range of cashback offers and rewards that help you maximise savings even when spending. The best part is that you can easily apply for a credit card online. By clicking on this link to apply for a credit card online, you can save a lot of time and do away with a lengthy application process with a lot of documentation.