Your Guide To Maximise Benefits Of Credit Card


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.

  1. 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.

  2. 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. This will take some burden off your shoulder while paying the rest of the due amount.

  3. Low credit utilisation ratio: While using a credit card you need to maintain a low credit utilisation ratio between 30% - 40%. Using a credit card more than this prescribed limit can negatively impact your credit score. To avoid this from happening, you can set a threshold limit on your credit card so that on reaching the limit you will be notified about the same and stop using your credit card any further.

  4. Earn rewards: You can maximise the benefits of your credit card by using it for those transactions only which let you earn reward points in return. This is only possible if you have the right credit card which matches your needs and spending habits.

  5. Know the fees and hidden charges: Before taking a credit card you need to read the most important terms and conditions leaflet of the credit card and then choose the credit card which is affordable and compliments your financial profile. You won’t be able to maximise the benefits of your credit card if the fees and hidden charges are high on it.

  6. Set Auto-debit services: There are times when you will forget the credit card bill due date and not paying the bill on time can impact your credit score negatively. So to avoid this, you can register for the auto-debit services and you won’t have to worry about the due dates ever again, your credit card bill will be paid on time, and you will be able to build a good credit score.

  7. Keep a track of credit reports/statements: This step is very important, you need to check the credit card statement and report every once in a while so that you can be aware of any omission or error on it and can report them immediately to the credit card score. This will you to build a good credit history.


Bottom Line:

To conclude, the above-mentioned tips can really help you in maximising the benefits of your credit card. You need to use your credit card wisely so that you can build a good standing account. Two of the most important things are paying the credit card bills on time and maintaining a low credit utilisation and you will be good to go.

Additional Reading - Credit Card - Your Friend Or Foe?

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