Sellers and service providers shower rewards on those who use their credit cards to pay for what they offer. To get the most from them, you have to use them smartly.
Everyone loves to have a credit card. It was a luxury only the affluent could afford to have in the past. At present, everyone who wants to have financial stability and security gets it.
A credit card lets you buy something and pay for it later. And it is safer than holding direct money. To make it sweeter, a credit card also carries rewards galore. It also offers numerous other benefits.
You may use your credit card instantly in the following scenarios:
If you have a high credit limit
The advice applies to those planning to get a new credit card. The credit limit available may vary from individual to individual. The best option is to go for the highest credit limit available for you. It allows you to spend more and improves your credit score. This works wonders when you have a check on your spending. A higher limit with low spending announces the prospective lenders that you spend smartly. And it will work in your favour in the long run.
If you don’t roll over your dues
Companies that issue credit cards let you roll over your dues for the month at a small charge. This may appear great at the start. You need not pay the penalty for your dues for the month. But the extra charge goes to the outstanding amount. And it comes into effect the day you start paying your interest on your outstanding payment. Remember, the interest of credit card payment is often exorbitant. It can go up to 40% of the amount to be paid.
Avoid this trap. Pay your credit card dues on time. When doing so, you avoid unwanted expenses and eliminate unpleasant surprises in the future.
If you are not an impulsive buyer
Use your credit card instantly if you know how to stay within your set limit when spending. Too much spending may put you in a vicious circle of debt. And you may have a hard time finding a way out.
Keep a diary of the expenses you incurred during a shopping spree. Doing this will help you evaluate your buying habits and modify them as per your budget.
If you check your credit card statements at regular intervals
Check your credit card statements at least once a month. It will help you see if anyone had unauthorized access to your hard-earned money. The habit will also assist in your efforts to be reminded of your unnecessary spending.
If you know which credit card suits you best
Credit cards are there to spend on necessities. For instance, buying home appliances and the like entitles you to a great many rewards. If you are someone who loves to shop online, there are credit cards designed for this purpose. Know what you need most and get one accordingly.
If you don’t fall for multiple credit card options
You may get any number of credit cards. They will also have different credit limits. You can use them at your own discretion. But don’t fall for this trap.
Having multiple credit cards makes monitoring your expenses a tough job. And you are going to have a tough time repaying your debts. Go for only those types and numbers of credit cards you need.
Are you a shopping freak planning to buy a credit card? If yes, you can go for firms that allow you to use credit cards instantly upon approval.
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