Tips to Manage your Credit Cards Efficiently

When managed efficiently, credit cards are one of the useful tools that could help us in times of cash crunch. The very design of credit cards enable people to have some money, in plastic form though, always in hand. However, there are people who take it as an advantage and over use credit cards which in turn leave them in debt.

To avoid such situations, one must be aware of simple yet important tips to manage their credit card/s in an efficient manner. Mentioned below are a few ways that might help you in to manage your credit card/s in a proper manner.

Have Limited Credit Limit

Many say spend limitedly on your credit cards. But we say, have a credit card with lesser credit limit. This will automatically put your credit card spending under control. Even though you have a credit card with higher limit, you can always ask the bank to reduce the limit that you think is right for you.

Spend Consciously

Once you have fixed your limit, it doesn’t mean you hit the number every month. You need to use the card only when it’s necessary. If you’re using the card for a specific transaction, you should be sure that you will be able to repay it the coming month or before the bill due date.

Clear Dues on Time

Many people have a habit of waiting till the last day to pay bills. It may not be a good idea with respect to credit cards. Unlike other bill payments, credit card bills take time to get credited to your account. The number of processing days vary from one payment channel to another. While a few methods like credit card payment through net banking provide instant credit, other payment channels such as debit card payment, cash payment, etc., would take minimum of 2 days for processing. Hence, to be on the safer side make sure to clear your dues a couple of days before the due date.

Make Most of Credit Card Offers and Discounts

Most of us are very enthusiastic to know the offers and discounts available on a credit card while applying for it. But once we have the card, we seldom look at the offers and discounts. This way we’re losing the special privileges offered on credit cards. Check your e-mail regularly to know the on-going offers on the card and whenever possible use them to make the most of your card.

Keep a Check on Your Reward Points

We are very much aware of the reward points we earn on our credit card transactions. But we seldom make an effort to check how many we have accrued, their expiry date, redemption policy, etc. Reward points are a great way to get benefited from your credit card spends. So, make sure to keep a track on your points and redeem them on time to avoid losing them. You can find reward points accrued on your card in your monthly billing statement or in your credit card net banking account.

Limit Cash Withdrawals

Unless it’s an emergency, don’t withdraw cash using your credit card as you need to pay heftily for the same. For every cash withdrawal on credit card, most banks charge a cash advance fee of 2.5% to 3% of the transaction value. They further start levying interest on the withdrawn amount from the date of withdrawal till it is paid back in full. Hence, make sure to limit cash withdrawals or cash advances on your credit card to minimum or nil.

These are a few tips which most of us can follow to have an efficiently managed credit card. Don’t opt for multiple credit cards as they build up false confidence in you while spending and would later become a burden to pay back.