A significant deterrent when you decide to get a credit card is the concern that you may end up spending too much and beyond your means.
However, with a bit of discipline and financial tricks, you can surely end up managing it effortlessly.
If you can follow some tips, you can know how to use credit card for maximum advantage. Credit cards have become one of the vital financial tools to pay for your online and offline expenses which you can repay after a specific period.
If you can correctly use it, it won’t land you in a debt trap. Read on to know all the tips now.
Here’s how to use credit cards to get maximized benefits
- Make the most of your interest-free period smartly
Credit card issuing companies derive a significant portion of earnings when card members delay the credit card outstanding. You should ensure to pay the credit card dues before the expiry of the interest-free period.
It will enable you to enjoy availing a short-term loan without any extra cost. For most lenders, the interest-free period ranges from 45-50 days.
Hence, if you can pay your credit card dues before the end of the period, you can get some rewards for free. Being unable to pay the dues may attract 2-3% interest per month on the outstanding amount.
- Pocket rewards for daily expenses
All of us need to pay for some unavoidable costs during the month such as utility bills, eating out, fuel charges and watching movies.
However, when you use your credit card to pay for such expenses, you end up grabbing reward points. What’s more, you may even get discounts on some particular spends using the credit card. Hence, you should know how to use credit card for extracting more rewards and discounts.
For example, the Bajaj Finserv RBL Bank SuperCard offers you 20,000 reward points as the joining bonus. You can also achieve milestones and earn discounts and rewards for movie ticket discounts.
- Convert your credit card expenses into EMIs
Here is another way to maximize the benefits of your credit card. We all go for one or two big-ticket expenses during the year. It could either be buying any electronic item or booking flight and hotel tickets for going on a holiday.
Hence, when you come back from holidays, the card dues may eat up a major portion of expenses for a long time. Thus, the smart thing to stay fresh from the holidays mentally would be converting all your big expenses into EMIs over a tenor as per your needs.
This way, you would be able to pay the dues without issues and also manage your monthly payments better.
- Go for a credit card balance transfer
Sometimes, the amount of transaction may be so big that converting into EMIs won’t seem to be beneficial. Hence, in such cases, it would be great to go for the credit card balance transfer facility.
By transferring your credit card balance to another service provider, you may enjoy a lower interest charge and manage things better.
But, here is a catch – not all credit card issuing companies provide the credit card balance transfer option. Hence, it would be good to check this beforehand at a new credit card applying time.
- Use two different credit cards with varying billing cycles
Many people use two or more credit card to manage their expenses by using all and paying lower dues per month.
However, if you do that, you need to ensure that all your credit cards come with varying billing cycles. Going for it will help you to avail of the wider window period. In turn, it will assist you to make timely credit card bill payments.
Also, you can use one credit card during the starting of the month and one during the end to space out your outlays so that you have to pay little or no interest.
Some of the methods that can help you make the most of your credit card are discussed. If you are in a new credit card apply position, you should ensure to check all the benefits and rewards that you will grab upon using it.
A leading lender such as Bajaj Finserv offers many pre-approved deals on credit cards, home loans, personal loans, EMI finance and others. They are designed to help a borrower go through the entire loan procedures fast and hassle-free.
All that you have to do is share your basic details like name and mobile number to check out your pre-approved loan offers right away!