Tips for credit card utilization


A Credit Card is one of the most convenient ways to pay by using it in a responsible way, you can enjoy interest-free money to use, rewards and freedom from cash. For using a credit card in a profitable manner, here are some tips.

  1. Know billing cycle of your credit card
    You can maximize your interest-free period if you are aware of the date of bill generation of your credit card. If you use your credit card just after your Credit Card bill is generated, you can get up to 45 interest-free days.
  2. Pay your bill on time
    Paying bills before date improves your credit score and other benefit such as increase in credit card limit offers on loans etc. Pay your balance in full each month to avoid paying interest and late fee.
  3. Never Maxed Out Your Credit Limit.
    Credit utilization(how much of your credit limit you are using) is the second biggest contributor to your credit score. So running up a huge credit card balance, and carrying it from month to month, can badly impact your credit score. Plus, it can set the foundation for getting into credit card debt(high interest rates)that can take a long time to pay off.
  4. Follow the rewards
    It is beneficial to understand the rewards program to maximize the reward points and cash back by using your credit card in the categories that earns the most rewards or stay updated about various types of offers. Redeem your reward points before they expired. Earning Reward Points can be beneficial in long run from movie vouchers, flight ticket discounts.
  5. Be smart about repayment
    Choose a convenient ways to pay such as EMIS , by choosing EMI you can repayment your large purchase in easy monthly instalments. You can pay your bill on your credit card provider’s net banking or use other apps that provides reward points on bill payments.
  6. Be vigilant about Credit Card use.
    Track your spending by monitoring your Credit Card transactions regularly. Keeping track of your spends will also ensure that unexpected transactions come to your notice and you can point them out to your bank immediately. You can set your limits on Credit Card in order to avoid any over spending.
  7. Use the Extra Perks
    Some credit cards offer other perks with cash back or travel rewards and Insurance. Rental car insurance; waived checked baggage fees; price protection(refund if an item’s price drops after you buy it); and extended warranty are just a few perks offered by many credit cards. If you don’t about the perks that come with your credit card, log in to your online account to review your credit card agreement or contact customer service.

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