How to Use Credit Cards for Your Advantage and Achieve Financial Freedom?

Posted on Monday, August 21st, 2023 | By IndusInd Bank

Credit cards are extremely beneficial to help you achieve your financial goals, if used wisely. They can offer you convenience, rewards, cashback, discounts, and other benefits that can save you money and enhance your lifestyle. But you need to be smart and responsible to not only achieve financial independence, but also to use Credit Cards for your advantage. 

Here are some tips on how to efficiently use your Credit Card for your advantage: 

Choose the right credit card for your needs 

There are a variety of credit cards available, each with different features, benefits, fees, and interest rates. You should compare and choose the credit card that best suits your needs, spending pattern, and repayment capacity. Let’s say, if you shop online often, you may prefer a credit card that gives you exciting cashback, rewards points, discounts, etc. 

One such credit card that offers a lot of flexibility and convenience is the IndusInd Bank Nexxt Credit Card. This is a contactless credit card that lets you choose how you want to pay at the point of sale. You can either pay by credit, or you can convert your transaction into EMIs or pay by reward points instantly by pressing a button on the card. This way, you can have more control over your finances and manage your cash flow better. 

Pay your credit card bills on time and in full 

One of the most important rules for using credit cards is to pay your bills on time and in full every month. This will help you avoid paying interest charges, late payment fees, and penalty charges that can add up to a lot of money over time. It will also help you maintain a good credit score, which is essential for getting loans and other financial products in the future. Paying your credit card bills on time and in full will also enable you to enjoy the interest-free period. This means that you can use your credit card for free for up to 50 days (depending on your billing cycle) without paying any interest. 

If you have difficulty paying your credit card bills in full every month, you should try to pay more than the minimum amount due. The minimum amount due is usually a small percentage of your total outstanding balance, which means that it will take you a long time to clear your debt if you only pay the minimum amount. Moreover, you will end up paying a lot of interest on the remaining balance. Therefore, you should try to pay as much as you can afford every month to reduce your debt faster and save on interest charges. 

Use your credit card rewards wisely 

Credit cards offer various rewards programs that can help you earn points, cashback, vouchers, discounts, and other benefits on your spending. These rewards can be very valuable if you use them wisely and redeem them for things that you need or want.  

One of the credit cards that offers a generous rewards program is the IndusInd Bank Platinum Aura Edge Credit Card. This card allows you to earn up to 8X reward points on select merchant categories such as shopping, dining, entertainment, travel, etc. You can also choose from flexible reward plans to suit your preferences. For example, you can opt for the Platinum Aura Shop Plan that gives you 4 reward points for every ₹100 spent at department stores.   

Use your credit card for emergency 

Credit cards can also act as an emergency fund that can help you tide over unexpected expenses or emergencies such as medical bills, car repairs, home repairs, etc. Having a credit card as a backup can give you peace of mind. However, you should use your credit card as an emergency fund only when you have no other option and when you are confident that you can repay the amount within a short period of time. You should also avoid using your credit card for non-essential or impulsive purchases that can put you in debt and jeopardize your financial freedom. 

Conclusion 

Credit cards are extremely beneficial, as long as you use them responsibly and smartly. They can help you achieve your financial freedom by offering you convenience, rewards, cashback, discounts, and other benefits that can save you money and enhance your lifestyle. Therefore, it is important to know how to use credit cards for your advantage and achieve financial freedom in your life. 

And if you’re looking for the best credit cards around, then look no further than IndusInd Bank Credit Cards. You can apply for an IndusInd Bank Credit Card online with 100% digital application process and instant approval. 

Apply Now 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.