May 7, 2021


5 Smart Hacks to Use Your First Credit Card

Heard about the benefits of using a credit card and now looking to get one for yourself? If yes, you need to ensure certain things like having a good credit score and a stable income. You also need to compare the different credit cards available in the market and choose the one that matches your requirements.

The best credit cards are the ones that do not charge an annual fee, the interest rates on them are low and they offer reward points to you on your transactions. You can apply online or offline for your credit card and once it is approved, you are ready to go cashless.

How to Reap the Benefits of a Credit Card?    

In addition to knowing about how to get a credit card, you also need to be aware of the costs and benefits involved.  You can use the various features of your cards to reap the benefits.

  • Spend According to Billing Cycle – The billing cycle of a credit card is generally a month and all your expenses or payments done during the period are covered in it. So take note of your billing cycle and plan your purchases accordingly. If you wish to defer your payment to the next month you can plan your purchases for a date that is after the billing date.

  • Use the EMI Option – In case you wish to buy something expensive like an electronic item or a home furnishing item, you can choose the flexible payment option offered by your credit card. This means that the payment for the item purchased is spread over several months or a couple of years.

  • Save While Spending by Using the Cashback Options – Check the special offers that come along with your credit card. You may have a chance to earn some cashback by buying fuel on your card or making purchases above a certain amount. Similarly, your card may be offering you an extra movie ticket when you buy two movie tickets or offer you a discount on your next purchase.

You can even earn credit card reward points by planning your purchases according to the available offers. By availing of such offers that come with your card, you can save while spending.

  • Boost Your Credit Score – You can use your credit card to boost your credit score. Timely payments of all outstanding amount on your credit card reflect your creditworthiness thereby boosting your credit score. A high credit score can boost your eligibility for getting a loan in the future or applying for another credit card.

  • Redeem Your Reward Points – Your credit card issuer rewards you by issuing you reward points that are a certain percentage of the amount spend by you. You can earn 1 reward point for every Rs. 100 spent and even more when you purchase from the select partners of your credit card issuer. Do not forget to redeem or convert these credit card reward points.

You can ensure that you do not miss out on redeeming your reward points due to their expiry date by choosing a card whose reward points do not have an expiry.

These hacks will certainly help you make the most of your credit card and earn some good benefits. All you need to do is use the various features while remaining disciplined in making your due payments.

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