How To Use A Credit Card The First Time?



Adding a credit card to your wallet can be a crucial decision to make in your life. While applying for a credit card for the first time, you can easily get overwhelmed with the humungous range of credit cards in the market and their myths. However, you still manage to get a credit card for yourself despite listening to credit card myths and we won’t let your hard work go to waste, we will guide you on how you can use your credit card to make the most out of your credit card. Keep reading to kick start your research.

  1. Avail of the signup bonuses: On receiving the credit card you get to enjoy the welcome offers such as bonus reward points, cashback, free movie tickets, flights/hotels, memberships, etc. on making valid transactions within a stipulated time period. To maximize your credit card benefits, you can avail of the signup bonuses.

  2. Earn reward points: Make sure that you know the rewards program of your credit card so that after receiving the credit card you can use your card for those transactions only that allow you to reward points. On earning reward points you can use them further to redeem against purchasing products, booking flights/ hotels, vouchers, etc.

  3. Pay more than the minimum: While using a credit card for the first time you will get the credit card bill every month that you will be required to pay. If you can not pay in full then pay more than the minimum so that you do not feel burdened while paying the rest amount.

  4. Adhere to the repayment cycle: To build a good standing account you need to pay the credit card dues on time. Defaulting that can harm your credit score. So, to avoid this you can register for the auto-debit services.

  5. Maintain a low credit utilisation ratio: It is very important that you maintain a low credit utilisation ratio and do not use your credit card beyond the pre-defined limit. You can set a threshold limit on your credit card so that you avoid using it in access.

  6. Avoid using your credit card at ATMs: You must know that using a credit card at ATMs for cash withdrawal attracts charges. This will only increase your expenses and it is advisable to avoid using a credit card at ATMs.

  7. Check your credit card report/statement: You need to check your credit card report/statement every once in a while as it will help you in being aware of the fraudulent activities or errors/omissions on your account that you can immediately report to the credit card issuer.


Bottom Line:

To conclude, following the above tips while using your credit card can help you make the most out of your credit card and in building a good credit score as well. Using a credit card wisely is the only key to learning the working of a credit card and building a good standing account. Just adhere to the timely repayment cycles and you will be good to go.

Comments

Post a Comment

Popular posts from this blog

Can I Pay A Credit Card Bill On The Due Date?

Image
Credit cards have become a need today. With competitive offers and bonus points on different cards, everyone wants to own one. With several credit cards available in the market specific questions related to credit cards arise among the masses. One of them is related to the due date on which the card bill has to be paid .   Talking about the due date, you first need a brief of what a Billing Cycle is. A billing cycle is a period after which your credit card statement is generated. Suppose your previous statement was generated on the 10th of a month so your next statement will be generated on the 10th of next month. The period between these two dates is known as the Billing Cycle. Now that the statement arrives on the 10th of next month, a due date is where you have to pay for this statement. The due date is generally 20 to 25 days after your statement has been generated by your credit card company. The period between your Due date and the date your statement was generated is known ...
Read more

Your Guide To Maximise Benefits Of Credit Card

Image
Credit cards are a great financial tool to add to your wallet but if not used wisely can cost you a fortune. Like a coin has two sides, so do credit cards. They can either be your friend in disguise or can be the biggest foe. With that being said, there are certain things that you need to know before you start using your credit card so that you can make the most out of it. In this article, we will guide you on how to maximise the benefits of a credit card. Without any further ado, let’s begin with your research. Choose the right credit card: To maximise the benefits of your credit card you need to understand that choosing the right credit card can only help you in doing so. You need to first analyse your needs and spending habits and then choose the credit card which compliments them. Pay more than the minimum: It is advisable to pay the credit card bill in full but if you are not able to do so, then you can pay more than the minimum due amount. Th...
Read more