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.
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.
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.
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.
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.
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.