Articles

How To Maximise Benefits From Your Credit Card

by Varun Narula Finance Writer

Own a credit card but have no idea how to use it? No need to worry, we will guide you through every step of the way. Using a credit card wisely will help you to maximise its benefits. Here are some tips that you can use to maximise the benefits of your credit card. Keep reading to kick start your research.


  1. Choose the right credit card: It is so important to have the right credit card in order to maximise its benefits. Identify your needs and spending habits and compare credit cards that match them and choose the one which is of the highest value to you.

  2. Use your card more often: Don’t just take a credit card for the sake of it. Use it more often like for every transaction that allows you to earn the rewards. This will help you to earn rewards sooner and will also help in building a good credit score.

  3. Use your reward points: Once you have accumulated reward points, redeem them during the validity period. This will help you to maximise the benefits of your credit card. Rewards get expired after a certain period of time so don’t let them go waste. Use to purchase products, vouchers, gifts, etc.

  4. Make use of the interest-free period: you get an interest-free period on your credit card to pay the credit card bills during that time period in order to avoid paying the interest. This will help you to save money. Know the interest-free period on your credit card so that you can accumulate the funds to repay the bill on time.

  5. Take advantage of perks and offers: On a credit card, you get various perks and offers such as complimentary spas, movie tickets, discounts on products, and so on that you can avail of. In order to maiximise the benefits of your credit card go ahead and take the advantage of them.

  6. Don’t use it at ATMs: Never ever use your credit card at ATMs until and unless it is an emergency. Withdrawing money from ATMs using your credit card attracts a processing fee. This will increase your expenses so avoid using ATMs if you wish to maximise its benefits.

  7. Pay your credit card bills on time: This one is very important, in order to maximise the benefits and keep enjoying those benefits you need to pay the credit card bills in full and on time. If you keep forgetting the due date then register for the auto-debit services and you will never have to worry about the due dates and your bills will get cleared on time every month.

  8. Maintain a low credit utilisation ratio: Another important aspect in order to maximise the credit card’s benefits is maintaining a low credit utilisation ratio. Maintain the credit utilisation ratio between 30% - 40%, for this, you can set a threshold limit on your credit card. This will allow you to not use a credit card more than the threshold limit.

 

Bottom Line:

To conclude, using the above-mentioned tips will surely going to help you in maximising the benefits of your credit card. This helps you in building your credibility and a good-standing account. It is very crucial to use credit cards responsibly as they can be your friend in need or can be the biggest foe you’ve ever imagined.

Additional Reading - How To Use A Credit Card While Traveling


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About Varun Narula Junior   Finance Writer

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Joined APSense since, March 11th, 2022, From Panchkula, India.

Created on May 9th 2022 07:11. Viewed 292 times.

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