As per a recent report, in June 2020 itself, more than 125 million POS and 323 thousand ATM transactions were registered in India through credit cards. These statistics clearly show the sky-high demand and popularity of this particular payment card.
Although several benefits attract a majority of the populace to settle for this short-term financing option, individuals also need to obtain the correct credit card information before applying for one. Especially those who are using this card for the first time should follow some useful tips to manage this useful financial tool efficiently and make the most of it.
Following are some of the most useful tips that will help cardholders to handle and utilize this card conveniently.
Learn about your card
Credit cards can be rewarding financial instruments that work both for emergencies as well as for casual shopping, traveling, and other purposes. Different credit card variants are available in the market right now, where each of them comes with some specific facilities, benefits, offers, etc.
Therefore, individuals first need to know all the features of the credit card that they possess. It will help them to make proper use of reward programs and other available benefits, and channel their expenses accordingly. For instance, a travel credit card accompanies some features that extend offers typically on air tickets, hotel bookings, etc.
Pay bills in full and in time
Bill payment before the due date is another vital credit card information that individuals need to be aware of. Although cardholders are eligible to pay the minimum amount due before the due date, it is advisable that they opt to pay the entire bill amount before the due date to avoid any additional charge payment.
Moreover, missing even a single payment not only levies a hefty interest rate, late fees, and penalty charges but also contributes to lowering one’s credit score significantly.
Avoid withdrawing cash via credit card
Using a credit card, individuals can withdraw cash in case of emergencies, an essential credit card information not known to all. However, while most cards accompany this facility, issuers levy a hefty interest rate and processing fee on every transaction. It often overburdens a user with additional charges. It is thus best to avoid going for such withdrawals.
Nevertheless, in the case of select credit cards like the Bajaj Finserv RBL Bank SuperCard, users can withdraw cash from ATM using the card without paying any additional interest for as much as 50 days.
The card provider also expedites the credit application process with their pre-approved offers. Such offers are available on a range of financial products like personal loans, credit cards, business loans, and several others. All you need to do is enter your name and contact number to check your pre-approved offer instantly.
Limit credit utilization ratio
An individual’s credit utilization ratio indicates how much amount he/she utilizes as against the available credit limit. Ideally, a ratio below 30% helps one to maintain a suitable credit score by indicating reduced dependency on credit. Therefore, one can use a credit card to improve credit score simply by limiting spending and keeping the ratio to a minimum.
Ensure card security
With the rise in credit card consumption, online and offline fraudulent activities are also increasing. Instances like unauthorized transactions, theft of passwords,s, and financial losses have become rampant recently.
Therefore, it is high time individuals choose an issuer that offers the most secured credit card available with advanced safety features like an instant card blocking facility.
Moreover, users also need to be cautious while swiping their cards at any POS or when using them online. To ensure card safety, they should also avoid sharing card details at any unknown suspicious merchant, on low-authority websites, at unguarded ATMs, and such unsecured places. Moreover, they should also change the PIN periodically to lower the risk of such frauds.
Check credit card statement regularly
Besides using a credit card, individuals also need to make a habit of checking the credit card bill regularly to detect any discrepancy. It also helps in analyzing their spending habit. However, to do so accurately, they must also know how to read a credit card statement correctly.
Therefore, besides checking credit card information regularly, individuals need to use this card wisely to reap all its benefits. Moreover, they should also compare different cards that are available at their disposal before settling for one.