Credit cards have especially become one of the essentials of the daily itinerary of modern life owing to their convenience of easy cash as and when necessary. With the obvious must of regular and timely repayment, credit cards come in many forms and can be used even for personal loans and regular shopping discounts. With availability of innovative options like online credit cards, use of credit cards has become further secure as well as convenient.
With the option of usage up to its cap, using a credit card wisely is vital. This not only helps in managing the expenses, but goes on to immensely aid the CIBIL score too. Different cards from different financial institutions have specific features to them and users should be aware of such a varied range of features before choosing any credit-related financial products.
While several NBFCs have different credit cards on offer, only premium financial institutions offer hassle-free availing of these products. NBFCs like Bajaj Finserv offer the Bajaj Finserv RBL Bank SuperCard in association with RBL Bank. It offers multiple industry-first features along with numerous additional benefits such as interest-free cash withdrawals, emergency personal loans, etc.
While KYC and personal details are required to issue a credit card, users need to understand the functioning of such credit cards to benefit the most. On the other hand, refer to tips to get the most out of a credit card to cut down on unwanted expenses, viz. –
- Due date: A convenient way to avoid unnecessary credit card expenses is to change the due date to one after which your salary is credited. This ensures that the credit card statements are cleared to their fullest amount every month instead of piling up and accruing higher rates of interest. While people often consider how to increase credit card limit, it is much better to monthly clear the bill and keep the credit limit free for expenditure.
- Online cards: With the availability of online credit cards, users can also limit their expenditure by availing these short tenor credit cards. These are active for a limited period, e.g. hours, days, and come with a capped limit of expenses which the user can make.
- Pay credit timely: Repayment of credit on timely basis is a must. Delay over the date of repayment results in extra interest rates and fines. An effective method of handling it is linking the card to a functioning debit card with the minimum monthly payment due set to be cleared.
- Maximise credit card repayments: It is best to repay the maximum amount possible. Irrespective of online credit cards or conventional ones, clearing maximum credit not only reduces the possibility of fines in the future, but also betters the CIBIL score of the user.
- Setting credit limit: Before setting credit limit, a user needs a detailed budget of expenditure and repayment. On one hand it requires the total expected expense, while on the other it must be an amount that can be repaid regularly and comfortably. Higher credit limits induce higher minimum due, therefore affecting the usual budget of an individual. How to increase credit card limit is an issue that needs to begin with the question if at all the increase is necessary.
- Reward points: Using reward points wisely can greatly affect the expenses. One can do several things with credit card reward points. However, this should also not lead to unnecessary expenditures just to score more reward points.
With multiple financial institutions offering several types of credit cards, it is often difficult to choose the right credit card. One should look at credit limits on a card and the ancillary offers in order to choose the right fit for them; so as to prevent any excessive expenditure with higher limits.