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Using A Credit Card Regularly? Here Are 10 Important Things That You Should Know

The demonetization combined with the initiative of Digital India has led people to apply for credit cards more than ever. People have started relying more on cashless transactions. But, there is still some hesitancy among people.

Here are 10 important things that one should remember while using a credit card on a regular basis:

Timely Payment of Outstanding Amount

It is important to pay your credit bill on time to avoid high rates of interest. You can use the auto payment facilities for timely payment

Card Utilization Ratio

The usage of your credit card should be low as compared to your credit limit. It will help in increasing your credit score and limit over time.

Withdrawing Cash

There might be some emergency situations that require instant cash. In such a situation, do not use your credit card to withdraw any cash as you would not be able to enjoy an interest-free period.

Interest-Free Period

If you are in a real bind and need to spend, it is better to opt for personal loans than credit cards. The interest rate on personal loans is lower as compared to the interest rate on credit cards.

Credit Score

A high credit score is good for you. Therefore, track your credit score through CIBIL to see which activities increase your credit score and avoid those that do not.    

Usage Alerts

Setting up usage alerts would allow you to control a number of transactions in a month. A usage alert would avail the benefit of identifying a pattern of one’s spending.

Losing your Credit Card

You should know the right steps that are needed to be taken in case you lose your credit card. It is better to store your card information and contacts of the bank before you face such an incident. 

Types of Credit Cards

There are many types of credit cards such as fuel card, shopping card, travel card, and more. Apply for a credit card according to your needs. 

Increase Credit Limit

If you maintain a high credit score, it would be a wise decision to ask the bank for an increased credit limit. It would allow you to spend more if and when needed.

Reward Points

Using your reward points regularly lets your bank know that you are a value user. The more reward points you use, the better promotional offers you will get from the bank. You can also redeem rewards points to shop before they expire.

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