How to Use a Credit Card? – 7 Best Ways

Whenever one talks about financial convenience, you can’t not mention credit cards. From- making expensive purchases easy to making funds available at a time of immediate needs, the benefits of a credit card are more than one. While a credit card can open up a world of possibilities for you, it is important to manage your credit card responsibly, to avoid unnecessary spends and an overload of debt. Here are some best way to use a credit card, which can help you in the long run. 

Remember Your Credit Limit 

Your credit limit is the maximum amount of money you can spend on your credit card. Each credit card user’s credit limit varies, depending on their individual profiles. A higher credit limit is tempting for sure, but it sometimes prompts us to make unnecessary spends, the burden of which is felt later. Use your credit limit wisely, and keep a close check on your available credit limit. 

Pay Your Credit Card Bill on Time 

Failing to pay your credit card bill on time has ad adverse impact on your credit score. To avoid such consequences, ensure you are paying your bill on time. Regular and timely repayments can unlock higher credit limits, and help improve your credit score. Try to pay your credit card in full, as the outstanding amount attracts high interest charges. However, in case you’re undergoing a financial crunch and are unable to clear your bill in full, make sure you are at least paying the minimum amount due. 

Also Read: 10 Ways to Increase your Credit Card Limit Quickly

Track Your Expenses 

Reveling in the freedom of funds readily available at your disposal surely feels great. But this often results in impulsive spends. To avoid this, consider keeping a track of your credit card transactions. Maintain a diary, or a digital notepad, where you can write down all your purchases. This will help you go back and assess your buying habits, and at the same, make informed choices while buying stuff.

Utilise Rewards & Benefits 

Most of the credit cards these days come with a host of benefits, such as reward points, gift vouchers, additional reward points on transactions, welcome bonuses, fuel surcharge waiver, etc. Some credit cards also offer added discounts on e-commerce platforms, at restaurants, and in the theatres. Want to revamp your wardrobe? Wait for a sale, and use your credit card to get even better deals. Check dinein discount offers before making a restaurant booking. Use your reward points to buy electronics and utility items. When used mindfully, credit card benefits can take some expenses off your wallet. 

Also Read: How to spot fake credit cards?

Plan Your Purchases: 

Your credit card has a billing cycle that you are probably already aware of. While making a purchase through your credit card, especially the more expensive ones, timing your purchase can indeed make a difference. Observe your billing cycle and when your bill is generated every month. If you make a credit card payment after your bill for the month is generated, you get an interest-free period of 1.5 months. 

Check Your Credit Card Statement 

As you use your credit card on a regular basis, it is also crucial that you access your credit card statement regularly. Most banks, if not all, share credit card statements with users digitally these days; and they’re also accessible through mobile apps. Make it a practice to check your credit card statement on a regular basis in order to rule out any misprints, or errors. This is also an important part of monthly budget tracking, since you have a record of things you bought, and the amount of money you spent. 

Get the Right Card for You 

Last, but not the least! The world of credit cards is lucrative, to say the least. Every lender has something attractive to offer, and is it easy to get carried away. However, while applying for a credit card, see that is is most fitted to your needs. For example, if you are a frequent traveller, picking a card that offers free lounge access, travel club memberships or discounts on hotel bookings might be beneficial. Do you drive on a regular basis? Get a credit card that waives off the fuel surcharge. There are also credit cards specifically tailored for people of certain professions, such as doctors, and teachers. 

To sum it up, while credit cards are an useful financial tool and can come handy in times of need, it is still a form of debt that needs to be paid off. Hence, it is of utmost importance to use your credit card responsibly.