Things to Keep in Mind While Using Credit Card
Guest Article by Ms Priyanka Rao
Author Bio: Priyanka Rao is a content strategist for Jupiter.Money, and specializes in writing on finance, banking, budgeting, salary & wages, and other financial matters. She has a passion for creating engaging content that resonates with audiences across various digital platforms. In her free time, Priyanka enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. With a keen eye for detail and a creative mindset, Priyanka is committed to creating content that connects well with her readers, enhancing their digital experiences.
Things to Keep in Mind While Using Credit Card
In today’s times, credit cards are a ubiquitous financial tool. As convenient as they can be, it’s important to note that credit cards are not free passes for unlimited spending. You have to be responsible while using and avoid getting into debt to sustain a good credit score. In this blog post, we are going to discuss 8 essential things to keep in mind while using credit cards.
8 Things to Keep in Mind While Using Credit Card
From understanding how to avoid payment of unnecessary fees to making timely payments - here’s how you can implement these tips and avail maximum benefits from credit cards. Let’s get started!
Tracking Reward Points
Depending upon the usage, credit cards offer a plethora of reward points. It could be in the form of cashback or discounts on travel and dining. If you use these points wisely then it can enhance your spending power. The best way to utilize its power is by staying updated with the reward structures and changes to the terms. Be aware of when and how many points you are earning. Different cards like MasterCard, Visa Card, Or RuPay credit card offer rates based on the type of spending. Many credit card companies offer year-end rewards. Keep an eye on these changes and track your points. This will assist you to plan their spending. In addition to that, note down the expiration timeline of these rewards. You do not want to miss out on an opportunity but at the same time, you want to consciously make use of rewards only if you need.
Say No to Withdrawing Cash Using Credit Card
Withdrawing cash using a credit card is a big no as it can incur steep interest and additional fees. Over time, it can compound rapidly thereby creating a spiral debt that is difficult to navigate. It’s highly advisable to not follow this practice as it can hamper your credit score. Reserve your credit card only for purchases where you can leverage the benefits without incurring additional costs.
Interest-Free Period :
One of the most appealing benefits of using a credit card is the interest-free period. It’s the period between making the purchase and the due date for paying off that purchase without any chargeable interest. Depending upon your card’s terms and conditions the period could range between 20 to 55 days. To truly benefit, plan your purchase around the start of your billing cycle. This will give you enough time bracket before the due date and offer you a short-term interest-free loan. You can make larger purchases during this time and without any extra charges.
Using Credit Card for International Transactions
Using credit cards for international transactions can bring in hefty interest rates and charges. Use it wisely and understand the terms and conditions mentioned for your particular credit card for international usage.
Timely Payments
Timely and full payment of credit card bills is crucial for your financial health and your mental well-being. By paying on time, you can avoid late fees penalty and high interest charges which can accumulate and lead to unmanageable debts. Clearing timely payments can also boost your credit card score and help you secure loans shortly. This strategic approach will give you financial freedom and a more resilient mindset towards money.
Monitor Credit Card Charges
Monitoring credit card charges is crucial for financial health. Regularly review statements to detect unauthorized transactions and track spending habits. Set up alerts for unusual activity. This disciplined approach ensures you maintain control over finances, avoid debt, and cultivate a secure, stable economic future.
Paying Credit Card Dues
Consistently paying credit card dues is essential for fostering good financial health. It improves your credit score and reduces interest accumulation. Most importantly, it reduces stress. Consistently clearing the dues will bring financial discipline and empower you to manage larger financial responsibilities effectively.
Credit Card Misplaced or Stolen
If there ever comes a scenario where your credit card is lost/misplaced or stolen then act immediately. Contact the card issuer, report the incident and get your account freezed. Monitor your statements to check for unauthorized statements. In addition to that, you can request the bank for a replacement card and set up alerts for future security. Always prioritize safeguarding your financial information. Do not share your PINs with anyone.
MAKE MOST USE OF CREDIT CARDS PROFITABLY :
SELECT A CARD WITH NO CHARGES , USE THE CARD PAYING NO CHARGES AND PAY FULL ON DUE DATE WITHOUT ATTRACTING PENALTY . You will enjoy Free Credit and Reward points at NO COST . Maximize credit period by using at the beginning of the billing cycle . HAPPY CREDIT CARD USAGE
Bottom Line
Remember the core principle of using credit cards is to spend only on the items that you can afford, pay bills on time, and pay off the balance every month. If you ever find yourself in a debt situation, then build discipline to spend accurately. A credit card is a very powerful tool that can provide you with a myriad of benefits. Follow the above credit card usage tips and make sure it’s worth it!