Just Got Your Credit Card? Here’s How to Use it Wisely

Posted on Tuesday, December 14th, 2021 | By IndusInd Bank

Let’s face it; having a credit card in your wallet gives you unparalleled spending freedom. With it, you no longer have to worry about visiting a bank or an ATM to check your savings account balance. You can swipe away without worrying and pay the amount by the due date conveniently. Plus, it also gives you the power to split any transactions into manageable EMIs.

However, for all the benefits they offer, credit cards do come with several risks attached. It’s easy to get carried away with the spending freedom you have. But this unchecked spending can give life to many financial problems later on.

So, if you’re new to the world of credit cards, here are some tried-and-true tips that’ll help you manage your credit well.

Check Your Credit Card Statement Regularly

While you might already know the total dues you have to pay, make it a point to check your credit card statements regularly. Usually, banks send these via email outlining your card limit, outstanding dues, total transactions, and even the reward points earned during the billing cycle.

Checking your statement does two things. One, it gives you a clear idea of your spending patterns, helping you take measures to control your spending. And two, it helps you identify any errors in the statement that can affect your budget and credit score.

Plan Your Big-Ticket Purchases

Credit cards usually have an interest-free period starting at the time of purchase to when the bill is generated, lasting approximately 50 days. Since any purchases made during this period don’t attract interest, it is wise to pay off your dues during this time.

So, make sure to plan your purchases, especially the expensive ones, accordingly to gain the maximum benefit of the interest-free term (and save your funds from going into paying interest alongside).

Pay Your Dues on Time

In addition to interest added on your dues, late bill payments on credit cards attract penalties in the form of late payment charges. These additional charges can drastically increase your bill amount. What’s more, late payments can even harm your credit score significantly.

So, it’s best to make timely bill payments. Some banks even offer an auto-debit facility on your credit cards, wherein the billing amount is automatically debited monthly from your linked account. Moreover, if you do not have funds to repay the total amount, you can opt for paying the bills as monthly EMIs too.

Reclaim Your Rewards

Know the rewards you can claim on purchases with your credit card inside out. Most credit cards offer benefits in the form of cashback, discounts, credit card points, miles, and much more, depending on the card you choose.

Hence, read your credit card booklet for the offers you can claim and make purchases accordingly. And while you’re at it, remember to claim your rewards before they expire.

Restrict Cash-Withdrawals Using a Credit Card

When you use a credit card to withdraw funds from an ATM, you are charged service and withdrawal fees. So, when in need of cash, make sure you use your debit card instead of a credit card.

Wrapping Up

To get the most of your credit card, make sure you know the features your bank offers, and plan your credit card spending according to it. Save your money by making use of the reward schemes on your card.

Want to apply for a credit card online? Apply for one with IndusInd Bank. You can select a card that suits your needs from the range of products we offer. The best part? You can apply for one online in three simple steps. Just fill in your details, select your card, and complete your virtual KYC to get your card; that’s it! To know more about our products, visit our website 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.