A credit card is a very important financial instrument which has been a great boon in out lives today. Nevertheless, its of vital importance to know how to use it responsibly. The trick is to use it smartly so that you can maximize your savings and utilize a truckload of its benefits.
However, ask yourself if you’re really making the most of your credit card right now?! Could there be more benefits you could be getting? So how can one gain more from a credit card, get more cash backs, gifts, offers or discounts?
Often cards are designed to suit different lifestyles, and thereby offer suitable benefits and reward programs. Some cards are designed to suit travelers, or frequent shoppers, even online shoppers etc.
The best tip here is to find a card that aligns with your lifestyle. If a considerable chunk of your spending is on groceries and household shopping, apply for a credit card that gives you offers and discounts on that. If you are someone who travels a lot, find a card that gives you cheaper flights tickets and hotel bookings. For someone who likes to enjoy premium benefits, you should find a card that can give you free golf lessons, or 5-star resort stays etc.
It makes sense to have a card that offers benefits that you use. If you have a travel card, and you take a flight only once a year, your card is not helping you at all.
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Every credit card has its own advantages. If one can, then keep multiple credit cards which will help you reap more benefits and add up to form a big bag of savings. If you are a frequent traveler, you can use one credit card one that gives travel rewards on purchasing airline tickets another card can be used which gives benefits and rewards on groceries for your home purchases.
Maintaining an interval of 15 days between the billing cycle of your multiple cards will ease off the burden of paying all at once. By having 2 cards with different billing cycles, you can use one credit card for first 15 days of the month and another one in the second half.
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While preparing your monthly budget, include the spending of your card’s. You should also try to pay off the entire balance every time, which will keep your spending in check.
You should always check the monthly statement of your credit card. It is important for two reasons, it will list all the expenses you have made, and also prevent any wrong billing. Keep a check on your credit report online frequently. As the credit report gives the picture of your credit account so far, it also helps ensure that all the information in your credit accounts is accurate. It will also help you know if you have been missing any payments, or EMIs.
Limit your spending within your budget, after all it you who has to repay the amount. So don’t spend because you can swipe the card whenever you want.Keep an eye on the mobile alerts of your transactions, to ensure that you always know exactly how much you have spent on the card. Pay off the entire balance due every month, this helps avoid the high-interest rates charged on the remaining amount. Dodge impulsive buying on credit cards which might land you in debt.