How To Use Credit Cards To Get Maximum Benefits

A credit card is a great financial tool and adding it to your wallet makes you financially liberal. Just owning a credit card does not do the work you need to be very cautious while using a credit card. The credit card has both pros and cons, if you use it wisely it will reap you benefits but it can also become your biggest foe if you use it carelessly. In this article, we have listed some tips as to how to use credit cards to get maximum benefits, so that you can you do not stay behind those who are already making the most out of their credit cards. Without any further delay let’s jump into the research to become a well-informed cardholder.

  1. Select the right credit card: Your work begins while choosing a credit card. If you are able to select the right credit card then you can surely make the most out of your credit card. Start off with identifying your needs and spending habit, once you know for what purpose you need a credit card, then your work will be easy while choosing the credit card. Select 4-5 credit cards that complement your profile.
  2. Compare credit cards: By this stage, you will have some selected cards. Now your work is to compare the selected credit cards in order to arrive at one credit card that is of optimum use. You should compare credit cards on the basis of benefits, fees, features, etc. Narrow down to one credit card and proceed further to apply for it. 
  3. Avail of the conditional welcome benefits: After receiving the credit card, if your credit card has a conditional welcome benefit say if you spend a certain amount within 90 days of card activation you will receive a voucher, then you should definitely avail of such benefits. This kind of offer helps you maximize the benefits of your credit card. 
  4. Clear your dues timely: This is one of the important tips that you need to keep in mind always. Never default in paying your credit card dues as it can drastically affect your credit score. To avoid missing the due date you can register for the auto-debit services, on the selected date your credit card dues will be deducted from your account automatically. 
  5. Low Credit Utilisation Ratio: Another important tip is to maintain a low credit utilization ratio. It is advisable to keep the ratio between 30% – 40%. You can easily maintain this ratio by setting the threshold limit on your credit card. On reaching the threshold limit you will be notified on your registered mobile number or email or on both about the same so that you can stop using your credit card for any further purchases. 
  6. Using the credit card for specific transactions: You must know your credit card very well and its rewards program as well. Use your credit card for only those transactions that allow you to earn reward points in return. If you earn reward points only on fuel purchases then use your credit card to make fuel purchases only and not for any other transaction. 
  7. Check your credit card report regularly: It is important to keep a track of your credit card report, if you find any fraudulent activity on your account or any kind of error or omissions then you can immediately report the same to the card issuer. Also, it will keep you informed about your status like your credit score, whether your credit score increasing or decreasing. 
  8. Block your credit card if you lose it: The second you realize that your credit card is lost or stolen, you need to immediately report the same to the card issuer to get your credit card blocked. It is the smart way to get your card hotlisted in such scenarios before any fraudulent activity happens on your account.

Bottom Line:

With a parting thought, we really hope that the above-mentioned 8 tips will help you in maximizing the benefits of your credit card. If you are a first-time credit card user then you must go for the lifetime free credit cards in the beginning and on the later stage when you become familiar with the credit card working apply for the upgraded credit card. But give it some time around 1 year before applying for the upgraded credit card. In maximizing the benefits on your credit card you need to bear two important tips that are mentioned above i.e. keeping the credit card dues clear all the time and maintaining the low credit utilization ratio. Being responsible with a credit card is the only way to build a good standing account. 

Comment below the tips that you follow to maximize the benefits of your credit card. Also, drop down any questions that you would like to ask about the credit cards, we would love to answer them.

Additional ReadingBenefits Of Having A Business Credit Card

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