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.

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