India’s payment ecosystem is undergoing a significant transformation, with Credit Cards rapidly gaining traction among consumers. While cash and Debit Cards have long been the preferred modes of transaction, a discernible shift is underway, marking a new era in the country’s financial landscape. The growth in the number of Credit Cards issued has been substantial over the past few years.
The vast array of options in the Credit Card market underscores the importance of aligning card selection with individual spending habits and financial goals. Whether one prioritises travel perks, dining discounts, cashback rewards, or specific shopping benefits, there is a card designed to maximise value in each of these areas. Some wise usage tips include:
Time your purchases
Each Credit Card has its billing cycle. Once you are aware of the bill generation date of your Credit Card, you can maximise your interest-free period. For instance, if you make a purchase just after your Credit Card bill is generated, you can enjoy up to 45 interest-free days, and sometimes more.
Pay your bill before the due date
When you use your Credit Card regularly and pay your bill on time, your credit profile with the bank improves. This leads to a range of additional benefits, such as increased spending limits and exclusive offers on Personal Loans and other financial products. Moreover, such actions improve your credit score and open better borrowing opportunities.
Follow the rewards
Read your Credit Card booklet carefully, especially details about the benefits it offers and the reward programme. Your Credit Card could open the door to a host of discounts on products and services, as well as privileges such as free lounge access and priority services at airports. Earning reward points on your Credit Card spends can accrue several benefits in the long run, from free flight tickets to movie vouchers to mega discounts on electronics.
Be smart about repayment
Your bank may offer you convenient ways to repay your Credit Card bills, for example, EMIs. When you choose this option, you can pay for large purchases in monthly instalments, like a Mini Loan. This eases your financial strain. You can also make your Credit Card payments through the online platform. Set regular reminders for bill payments to avoid paying high interest.
Use the Credit Card EMI calculator to break up large purchases into equated monthly instalments by entering the Loan amount taken on your Credit Card, the interest rate, and the Loan tenure. Later, you can calculate the monthly EMI, total interest payable, and the Loan tenure.
Monitor your transactions
Avoid maxing out on your credit limit every month. Monitor your Credit Card transactions regularly to notice specific patterns in your spending.
Conclusion
Tracking spending ensures that unexpected transactions come to your attention, letting you report them to your bank promptly. You can even set limits on your Credit Card to avoid overspending.
