One of the most exhilarating experiences of any individual’s financial journey is getting their credit card. It adds a sense of responsibility and freedom to access credit any time you need it. Now, more than ever, credit cards come with a range of benefits like cash back, discounts, reward points, and more.
However, even though most credit cards come with a range of perks, they are only used to pay bills and are used in case of emergencies only. Since they are still used occasionally, most of their power-packed features remain buried within the introduction brochure only.
Related Read: Unlock the full power of your credit card
Even if you are not planning to get a credit card in the near future, knowing more about these benefits could be helpful in making a choice when you are considering ways to get access to some extra credit. Here are a few smart tips to keep in mind:
Tip #1: Take your time to choose the right card
Credit cards are made for individuals with all types of financial affordability. Right from a beginner with minimum income to a businessman with high credit limits. Whichever band you belong to, make sure that you are aware of all the benefits and understand them correctly. You will need to go through the fine print thoroughly and make a clear comparison as to which benefit is for you and which one is not. You can always opt for other credit cards that are more in line with your requirements.
Tip #2: Watch what you shop
Now that you have clarity on the benefits and perks of your credit card, you need to know how to make the most of it. It is important to keep using your credit card in order to avail maximum benefits and spend in the right places! For example, some credit cards give you a cashback everytime you refill your vehicle’s fuel tank or when you shop a certain chain of stores. It is important to be aware of the kind of loyalty programs that are available for you.
Tip #3: Go for a credit card that compliments your spending habits
The more you spend on your credit card, the more you will earn on loyalty points and rewards. So, if you are a regular shopper then a credit card with a high limit might be best suited for you. However, if your credit card usage is limited to small expenses, then managing a card with higher limits won’t bring you many benefits. In addition to that, ensure that your monthly due does not cross your affordability range. Go for a credit car which sits well within your budget.
Tip #4: Never miss the promotional and festive offers
In the festive season, everyone brings out special offers and rewards. Stay on top of it and keep a check on what is available on your credit card. You never know, you could make the most of those double reward points and extra cashback offers on any medium to big purchases in this time period. Plan your purchases around this time wisely.
Tip #5: Don’t miss out on the perks of reward points
Reward points are not just random vouchers made available to you, they are offered to you for showing loyalty and making purchases. Don’t let them go to waste and utilise this extra purchasing power! There are several vouchers and products offered in lieu of those points which you can redeem at any point in time till they don’t expire.
Tip #6: Know where to use your card and use it often
If you have a power-packed credit card that offers you exciting rewards and loyalty points but you do not use them often, then it is of no use to you. Make use of your card even in day-to-day expenses and make the most of your credit card benefits.
If used wisely, credit cards are a great way to add some extra buying capacity along with a few credit score points to your profile. Beginners are often advised to go for credit cards before going for loans in order to build a decent credit history. By purchasing small things on credit card EMIs, one can easily build their CRIF credit score and use it to take the next big financial leap.