How to Take Advantage of Credit Cards
Who does not love a credit card? We all love it, and it’s not a thing that you would see only in the hands of some well to do, but many salaried individuals.
It has paved the way for salaried class people to fulfil their desires by shopping via the credit cards and paying in EMIs over a tenor.
Hence, even if you don’t maintain a balance in your savings account, you can still use the credit card to your advantage when in need.
However, when it comes to using the credit card, not all are aware of how they can make the most of the credit cards. This post will help you take advantage of your credit cards and make it work in your favour. Read on!
Simple ways you can use your credit cards smartly
Ask for a high credit limit
The sanctioned credit limit on a credit card is different for each. If you want to apply for credit card, ask for the highest possible credit limit from your lender. Besides letting you spend on a higher amount, a higher credit limit also helps to improve your CIBIL Score. Also, a low use on a higher spending limit also denotes a lack of credit hungriness, and it contributes to your credit history.
Pay your credit card bills on time and in full
It is well-known advice, yet many people ignore it and face the consequences. Credit card issuing companies levy a very high interest rate on your outstanding balances. Thus, it’s simple to understand that if you don’t clear your credit card dues on time, you will have no option but to pay heavily. What’s more, if you default on your credit card bills, it will also hamper your Credit Score. Having a lower CIBIL Score will not be a good thing. It is because your loan application may be rejected or even if you get an approval, it will be at a higher interest rate, adding to your costs.
Don’t just pay the minimum payment
Most of the credit card users believe that paying the minimum payment on due on your credit card instead of the full amount is sufficient. However, to avoid the penalties, you should pay your entire credit card outstanding by the due date. It will also help you avoid the huge interest rate. Don’t pay heed to the ‘minimum due’ section at all, and pay the credit card bills in full per month to make it profitable.
Don’t withdraw cash using your credit card
Another vital credit card feature that’s allowed on it is the withdrawal of a fixed amount via an ATM just like you do with using the debit card. Nonetheless, even if your lender has allowed you to withdraw cash from ATMs, avoid using the facility. It is because the credit card ATM withdrawal attracts heavy charges. Would you like to pay some extra interest charges for withdrawing some money from an ATM? Think over it, and then only decide to use the credit card at an ATM.
Avail the loan against credit card facility
Lenders keep offering you with some pre-approved personal loan offers against your credit card from time to time. The application formalities are negligible as its being presented to you pre-approved. Also, the disbursal time is less compared to the traditional personal loan approval and disbursal. Thus, if you need some instant money, you can look up to the loan against credit card features available for you.
If you know how to use your credit card smartly, there is nothing that can beat it in today’s time.
Some of the easy steps to use your credit card are now discussed to help you understand it. If you are ready to apply for the Bajaj Finserv RBL Bank SuperCard, keep a note of these tips as it will help you use it prudently in the future.
All you have to do is share some basic details and explore your pre-approved offers now!