How to Use Your Credit Card Wisely? – Financial Discipline and Credit Cards

Posted on Wednesday, May 18th, 2022 | By IndusInd Bank

Freedom to spend instantly and conveniently without worrying about checking account balance is one of the many perks a credit card offers. Which is why everyone wants to own one. Are you also contemplating your decision to apply for credit cards? Or wondering if there’s a safe and responsible way to use a credit card?

Contrary to popular belief, owning a credit card does not call for a financial catastrophe. But using it in the wrong way does. So, it’s crucial for account holders to have the necessary financial literacy and discipline to use their credit cards wisely.

Read on to gain a better understanding of how to use credit cards to your advantage.

1. Check Your Credit Card Statements Regularly

Regularly checking your credit card dues and statements will not only help identify any errors present but also will give you clarity on your spending pattern. This will help you rectify the errors, thus saving yourself from faulty credit scores.

It is always good to keep a track of various transaction updatesincluding credit card limit, outstanding dues, reward points earned etc. by checking the monthly credit card statement.

2. On-Time Payments

Paying your bills on time is a good practice when it comes to credit cards. This is because of the penalty charges that will be levied on your late bill payments, apart from the added interest to your dues. Altogether, the total outstanding due can cause a great deal of financial strain. Not to mention, it can negatively impact your credit score as well.

So, it is wise to make prompt payments. You can even opt for the auto-debit facility on your credit cards provided by most of the financial lenders. This arrangement allows for automatic payment of your credit card bills from your linked account.

3. Using Credit Cards to Maintain Credit Scores

Your credit score is one of the most important factors lenders use to measure your financialhealth. And credit cards are the best way to maintain it if you are prompt in your bill payments.A good credit score might help you avail a loan easily in the future if you wish to, as lenders see the credit score as a sign of your creditworthiness.

4. Avoid Using Credit Cards for All Your Expenses

Using your credit card continuously and making big purchases can leave the impression that you are highly dependent on credit. This is, of course, seen as a bad sign, especially by lenders. So, follow proper budgeting and make sure to spend within your credit limit to maintain a good credit utilisation ratio. It is always a good practice to restrict your spends within 50 percent of your credit limit.

Why Should I Apply for a Credit Card at IndusInd Bank?

Ready to enter the world of financial convenience? IndusInd Bank offers you a wide range of credit cards to choose from based on your financial requirements and lifestyle. In addition, the application is 100% online and paperless process. Here are some of the instant credit cards you can opt for:

• Legend Credit Card
• Platinum Aura Edge Visa Credit Card
• Platinum Visa Credit Card
• Club Vistara IndusInd Explorer Credit Card

Taking into account that every customer has specific financial needs to be addressed, we’ve designed credit cards suitable for different groups. Moreover, you can enjoy benefits such as reward points, cashback on entertainment and dining offers, and much more on all our credit cards.

Parting Thoughts

A credit card is a great tool to enhance your credit rating and thus improve your credit worthiness.Additionally, it earns you several benefits through cashbacks and reward points, gets you frequent flier miles, and is accepted worldwide to serve all your transaction needs

Indus Easy Credit Cards from IndusInd Bank will not only help you add unmatched financial freedom to your life but will ensure you save a ton on every transaction! The application process is 100% online and paperless making it extremely convenient to apply for a credit card. So take your pick and follow our three-step online application process to apply for a credit card with IndusInd Bank today.

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.