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How to Manage Your Credit Card?
Posted on Monday, April 11th, 2022 | By IndusInd Bank
Credit cards are great financial tool, if you use it carefully. Credit cards let you raise short-term credit at low costs, act as a financial cushion in times of need, and even let you save up some money using the rewards programs and cash backs. However, a little mismanagement, and you could end up seeing your credit card debt spiral out of control very quickly.
Therefore, it is important to know how you should manage your credit card in a way that it works for you and not the other way around. Here are a few tips:
Use it for needs, not wants
When you get your credit card, it is only natural to think about all the things that you can purchase within the credit limit. However, it is also important to keep in mind that there are no free lunches and at the end of the day, you will need to return that money plus interest.
So, manage your desires. Purchase what you want keeping in mind your financial capability. Taking on a debt today is like taking money from your future self. The more debt you take on today, the less you will have in the future.
Get a credit card that is well suited for you
Most credit cards come with some cash back and reward points programs on specific types of purchases for example air travel, movies, dining out, etc. So, pick a credit card that meets your lifestyle.
IndusInd Bank has a number of credit card offerings that provide benefits across categories like shopping, dining, movies, travel and others. Do check out these offerings and apply for a credit card online right here.
Read the fine print and understand any hidden charges
Many credit cards have additional charges associated with them like joining fees, annual fees, late payment charges, etc. Make sure you understand all these hidden charges. Before choosing a credit card, make sure to conduct your own credit card comparison in order to find the best fit for you.
Avoid making minimum payments and late payments
This is one mistake that many people end up making with their credit cards. Making just the minimum payment every month can really add up your interest bill. Always try to pay higher than the minimum payment and never miss the deadline for your payments. Credit cards usually have pretty high late payment charges as every time you miss a payment, interest accrues on the total outstanding balance, not just the missed payment.
Manage the number of cards that you have/need
Owning multiple credit cards is a good idea as it increases your credit limit and lets you have different credit cards that are suited for various purchases. However, avoid overdoing it as you may find it difficult to manage these cards, keep track of all of their payments, etc. If you do have many credit cards, consider retiring some of them by transferring their outstanding balances on other cards.
Last few words
A credit card is like a double edged sword that you want to handle with care. Make use of these tips and manage your finances like a boss. If you’re looking to apply for a credit card with great features and reward programs, do check out what we have to offer right here. If you are planning to get a credit card that is loaded with rewards and benefits, check out IndusInd Bank. They have a collection of credit cards to meet the needs of customers with varied needs.
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.
