Opening the envelope that holds your credit card is always an exhilarating experience. To tear the seal & open the letter that holds your maximum credit limit is an exciting task for every individual. It gives you an extra layer of freedom to spend and realize all the dreams that you suppressed with an ‘I’ll buy it with my new credit card’ statement! You must, however, not get pulled into the euphoria & keep a few things in mind before you start using your new credit card!
1. Activate your card
The first step is activating your card, which is an easy 2- to a 3-step process. You must simply call the given number & authenticate your details. These days you can also receive an OTP on your registered mobile number to set your card PIN. Alternatively, you can register the card on your account through the net banking platform. Once all of these processes are taken care of, make sure you sign on the white strip given at the back of your card. There are a lot of opinions that circle around the importance of signing, but it is better to do that or you can simply write a directive for someone to ask for proof of identity when the card is produced.
Related Read: 5 Major Ways Credit Cards Affect Your Credit Scores
2. Destroy old cards
In case this new credit card is an upgrade from the bank or opted by you, destroy the old card by cutting through the magnetic strip. In any case, maintain the practice of destroying the cards as soon as they expire & order for a replacement. In case your current card is a replacement, then check to see if your autopay settings are carried forward or not.
3. Read the rules & regulations
Apart from the blessed document that holds your card & its limit, there are other documents that are a part of the kit. Ensure a thorough read through them all as they enlist the rules & regulations that you are liable to follow. While some credit cards have relaxed rules when it comes to repayment, several credit cards, especially the ones with a high limit, have stricter policies & regulations. These documents also hold the rewards system that your card brings for you. Understand the process of redemption & cashback facilities.
4. Spend within your limits to pay within your comfort
However high your credit limit may be, make sure that you hold your horses on the expenditures. To make sure that your credit score is not hampered, make full payment of your credit card dues every month. This will not only maintain your credit score but will also reflect positively on your credit history, showing you as a responsible borrower.
5. Check your credit score
Conduct regular credit checks to know how your score has progressed & what measures you must take to repair it, if needed. Credit bureaus like CRIF offer 1 free report every year. Use it to know where you stand & tap any errors or frauds when you see suspicious changes in your score. This way you will be vigilant to report an identity theft in time.
To begin your credit journey smoothly, get your free credit report here!