5 Tips for Beginners to Use Credit Cards Wisely

A credit card is plastic money that comes in handy. So, its wisest use is to let it facilitate your various payments anytime anywhere. This includes paying all kinds of bills, shopping, booking tickets, and more.

Credit Cards

Here are 5 other tips for beginners to use credit cards sensibly.

#1 – Keep Using Your Credit Cards

Compare different credit cards and get the ones that best suit your needs. Once satisfied with the chosen cards, ensure to consistently use them to:

  • Facilitate your payments easily and instantly.
  • Keep your accounts open.
  • Avail of the rewards and offers on purchases that pop up from time to time.
  • Build a credit score.
  • Boost your credit utilisation and credit score.

#2 – Pay the Balance in Full and On Time

Credit cards issue a statement every month that contains the minimum payment amount and the due date to clear it. It’s best to pay the full balance (not just the minimum amount) by that date to:

  • Avoid interest charges on unpaid dues or late payments.
  • Improve your credit score. This can help you be eligible for being granted loans and getting credit cards with higher credit limits. A good score can also help you get a low-interest credit card which can reduce your interest burden.

#3 – Use Credit Card Rewards

Check if your credit card offers reward points for every rupee spent using the card. Then avail of these points to get gift vouchers, cashbacks and various other benefits!

You can maximise your use of the rewards if your card offers the following additional benefits:

  • Up to 10X reward points.
  • No maximum limit of the credit points.
  • No expiry date of reward points. So you won’t lose them ever not have to use them in a hurry.
  • Zero redemption fees on using the rewards.
  • More credit points on online card-based transactions than offline ones to encourage spending safely at home while earning more rewards!

#4 – Finance High-Value Purchases Smartly

You may feel that the offered line of credit on your card isn’t enough to finance big purchases like a laptop. Then consider doing the following:

  • Take a loan against your credit card.
  • Pay it back in no-cost EMIs within the given repayment tenure.
  • Learn the minimal processing fee charged to convert the zero cost EMIs.
  • Check if you can get a percentage of cashback on your first EMI transaction.

#5 – Avail of the Offers at Partner Merchants

Check if your credit cards offer great deals on various categories of purchases in association with partner merchants.

Then make the most of these offers and discounts on:

  • Lifestyle and shopping like purchasing branded bags, clothes, jewellery, etc.
  • Healthcare and wellness like ordering medicines online
  • Food like ordering fresh lean meat online
  • Dining at five-star restaurants
  • Booking movie tickets
  • Education and upskilling like annual academic subscriptions
  • Travels like hotel bookings
  • Services like legal

Read the terms and conditions of your credit card document to know all the features and charges. Also, check any benefits like no annual fees. Awareness can optimise your use of the card!

Terry K. Mata

Hipster-friendly coffee buff. Beer aficionado. General internet ninja. Hardcore communicator. Web nerd. Problem solver. Spent childhood merchandising muffins with no outside help. Have a strong interest in importing puppets with no outside help. Spent high school summers investing in jump ropes in Las Vegas, NV. Spent 2001-2005 buying and selling sheep in Salisbury, MD. Spent 2001-2004 creating marketing channels for bullwhips in Pensacola, FL. What gets me going now is testing the market for circus clowns for the government.

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