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The popularity of credit cards in India is very evident from the fact that the nation’s credit card industry is expected to grow at a CAGR of 25% between 2020 and 2025. This was revealed in the Customer Priorities – Credit Card Users in India report by ResearchAndMarkets. So, if you too are thinking about getting yourself a credit card, the first step is to find out about the best ones on offer.
However, to make the most of owning the card, you need to know how to maximise its benefits. So, here’s a look at some useful tips on how to use your credit card the smart way.
1. Stick to using one card
Each time you use a card, you get to accumulate reward points, especially if you’ve done your research on how to get the best credit card. However, if you keep alternating between cards, your rewards will get split between them, which means it will take you twice or thrice as long to build up a good corpus of points to access great deals and discounts.
2. Make the most of credit card reward points
The best credit cards also give you more reward points for every rupee spent. These can then be redeemed for vouchers, gift cards or even airline miles. If you’ve chosen well, you will have a card with reward points that don’t expire. This means that you don’t need to continuously keep track of expiry dates and end up redeeming them in a hurry to avoid losing the points. So, before you apply online for a credit card, check the reward program to make an informed decision.
3. Check your credit limit and period
Credit cards usually come with a limit on how much you can charge on them per month. Staying within your credit limit is a good idea, since this will help you avoid high interest rate payments. Also, keep track of when the payment is due and make sure to pay the amount before the due date. This can also help you save on high interest payments. Failure to make timely payments could lead to late payment fees and interest being levied on your balance, as per the annual percentage rate (APR).
4. Learn about consumer protection
The best credit card companies come with a highly efficient consumer protection system. If you’re mistakenly charged for a transaction that you didn’t make or declined, all you need to do is file a complaint with your card issuer. They will investigate and ensure that any faulty transaction is reversed.
5. Don’t carry forward outstanding amounts
At times, we may not be able to repay the complete outstanding amount. Some people believe that paying only the minimum amount will suffice. However, after the due date for the remaining amount, interest becomes applicable to the outstanding amount. So, make sure to keep track of how much you are spending on your card to prevent the bill from becoming bigger than you can afford to repay.
Before you apply for a credit card online, carefully read all the terms and conditions about its usage, charges, facilities and benefits. Once you use your card optimally, you can enjoy endless financial transactions, withoutworrying about any risks.
