4 simple techniques by which you can optimally use your credit card

A Credit card can be a double-edged sword. On one hand, if used in a disciplined manner, it can be a very helpful financial tool for people from different financial backgrounds. On the other hand, if one is careless and undisciplined when using a credit card then it can have a catastrophic effect on an individual. Therefore, it is extremely important for a credit card holder to know the best way to use it. When this is done, it not only protects you from financial trouble in the future, but also has the potential to save your money in the long as well as the short run. So, let us check out how you could use your credit card effectively for your financial well-being –

       1 . Get Rewarded with Credit Cards

There are several credit cards and credit card payment mobile applications like CRED which offer attractive reward programs to their customers. Many people due to their busy lifestyles make the mistake of not reading the emails and letters sent to them by their credit card issuer or credit payment application companies. However, it is in the interest of the card user that they are aware of the offers that they can utilise. It is possible for you to avail cashbacks when you purchase movie tickets, pay for a meal at a popular restaurant, or book a holiday. There are also many reward points schemes under which you earn points every time you use your card for selected stores, using which you can avail discounts of your choice. Hence, it always is a good idea to keep your eyes open to these offers.

  1.   Save on Fuel Surcharge

The price of petrol and diesel is a major concern for the majority of the urban Indian population. Even the slightest of change in the amount that we pay for it, can make a difference. So, if you are little careful when purchasing fuel with your credit card then your net expenditure on it could come down. When you purchase fuel at a station with a credit card, you not only pay for the price of the fuel but also pay a transaction charge for using a credit card when buying petrol or diesel. However, you can avail avail fuel surcharge waiver of up to 3% of the transaction amount if the net transaction amount is between Rs. 400 and Rs. 4000 (subject to change, please check the credit card details). So, next time you are at the petrol or diesel station, here’s your chance to avoid paying fuel surcharge

  1. Know Your Spending Habits

Different customers have different types of lifestyles and credit card spending habits. Some people primarily use their credit cards for health emergencies, while others use it for the purpose of travel and entertainment. In order to make optimal use of your credit card, you must ensure that your credit card rewards are in line with your expenditure. There is no point in you getting rewarded for buying movie tickets if you seldom visit a movie theatre. A reward is only useful if it matches your spending habits. If you are someone who travels regularly, then rewards like airline ticket is perfect for you. So the next time you get a credit card, remember that your spending habits and your rewards need to match for you to  make optimal use of your credit card.

  1. Make Full Payment Whenever Possible

People often think that paying the minimum payment mentioned in the credit card bill is sufficient to enjoy the benefits of credit card. This can have a disastrous effect. This lack of awareness has resulted in many people incurring financial blows. If you make the minimum payment, then a higher interest rate (between 24% – 40%) is levied on the amount that rolls over to the next month. It is because of this reason you should pay as much of the outstanding amount as possible to avoid paying high interest.

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