Roy Rahul 
credit card free
Credit cards offer a convenient avenue to make substantial purchases. Credit cards might come with a wide range of benefits when used carefully, such as various offers and package deals. Additionally, you may take advantage of multiple features that come with your credit card free of additional charges. Understanding all the aspects of your credit card before making purchases is crucial, including terms of use, convenience charges and subscriptions. Let us understand the key tips and tricks that could help you leverage it to the best of your advantage.
#1: Select wisely – Before you select a credit card, understand the features and benefits that come along with it. Suppose your credit card offers discounts on fuel, but you do not own a car; this reward may not be helpful to you. If you dine out a lot, you might want to select a credit card that gives discounts on dining options. If you travel a lot, you might want to choose a credit card that has tie-ups with some airlines and offers rewards such as lounge access and air miles. If you like premium benefits, you might want to select a card that offers deals on 5-star resort stays. It is crucial to access the different offers before choosing the credit card that would provide maximum benefits. It is also essential to read the fine print such as insurance, extended warranties, rental car insurance, holiday insurance, credit shield, lost credit card liability, trip cancellation insurance etc. Check out various credit card providers to understand the best available offers per your requirements before zeroing in on one.
#2: Attractive cashback and gift offer– You may be eligible to receive cashback or reward points while using your card for making regular payments such as restaurant bills, movie bills, utility bills etc. Credit card companies often have tie-ups with retail chains or restaurants and may offer cashback when you use your card. You must be aware of such schemes before you make a bill payment. You can also earn reward points and use them to redeem a gift from the company’s reward catalogue. Additionally, ensure you utilise all your rewards and offers well within the given timeframe.
#3: Diversify – You may apply for multiple credit cards to enjoy more substantial benefits. One of your credit cards might offer a fuel discount while another would be more beneficial in case of flight bookings. However, do not opt for too many credit cards at once since handling many cards with different amounts and due dates could be cumbersome. Similarly, make sure you select different credit cards for your family members that offer numerous other benefits. For instance, if your credit card provides you reward points for shopping and if your sibling holds one that offers deals on restaurants, you may be able to benefit from both these offers.
#4: Credit card statement and score – It is crucial to check your credit card statement every time using a credit card. This helps identify any false charges and gives an accurate picture of how you have utilised your credit limit. You must also check your credit score to ascertain that all the information drawn from your account is accurate and that your credit score is maintained. Your credit utilisation ratio also contributes toward your overall credit health. A higher credit utilisation ratio implies you are a risky borrower even when you have paid all your dues timely. Therefore, if you have a higher credit utilisation ratio, there are greater chances that your loan application might get rejected. Additionally, it is recommended that you pay your credit card bill in full at the end of your billing cycle, as far as possible. You must also ensure timely payments on your bills to avoid exorbitant late payment charges or a drop in your credit score.
#5: Billing cycles – While purchasing a credit card, ensure there is at least a gap of 12-15 days between the billing cycle of your cards. This enables you to utilise one credit card for the first 15 days of the month and the second one after that. By doing this, you can increase the grace period between the cards and extend the time between the actual swipe and bill payment to 30-50 days. Additionally, you can leverage the interest-free period to the maximum extent by making your credit card purchases at the start of your billing cycle.
Conclusion
Credit cards offer numerous benefits, from additional liquidity to exciting offers and discounts. Select the best credit card for yourself carefully, considering your requirements so that you can utilise its benefits fully. Additionally, managing credit cards efficiently sets the foundation for developing a healthy credit score that goes a long way in establishing your credit history. You must therefore manage your credit cards carefully and efficiently to maintain your credit score and ensure your creditworthiness remains intact.
