8 Tips to Make Credit Cards Work for You, Not Against You

A credit card is a convenient financial tool. However, you need to use your credit card with caution and be very disciplined with it. From the spending to the bill payment, everything must be done responsibly. Take a look at this article to know how you can make the instant credit cards work in your favor without them becoming a liability for you.

instant credit card

Tips to use your credit card effectively

  1. Make full bill payments – You should always try to pay your credit card bill in full. Never make partial payments, as your debts will only keep piling. You will be charged extra interest on the unpaid amount, which will further push up your financial liability. Spend less so that you can clear the bill as soon as you receive it.

  2. Pay bills on time – It is essential to pay the credit card bill on time. A missed due date can make the payment more expensive because of the added late fee. It can also harm your credit score and make the interest rates go up. Avoid these situations by being disciplined about timely bill payments.

  3. Check your account activity – Don’t forget to check your credit card account from time to time. You can scan over the spends to remind yourself of the expenses and decide how much more you can spend in the month. You can also detect any foul play and inform the bank immediately. This will keep your money and your card protected.

  4. Use the rewards wisely – Every credit card offers a set of rewards and benefits. Use these rewards to your advantage. For instance, some cards offer cashback for utility bill payments. You need to pay your utility bill anyway, so use the card for it. Enjoy the cashback received and make a profitable move.

  5. Spend within your budget – Do not spend more than you can afford. Spend as much as you can payback. If something is too expensive, don’t swipe your card for it. This is a golden rule that you need to follow when using your credit card. 

  6. Make provisions for big spends – If you need to make an expensive purchase, like a large LED TV or pay for a foreign vacation, save up for it first. Make sure you have the cash to pay your credit card bill. Then, swipe your card, and as soon as that is done, clear the dues with your saved money. You will earn huge rewards and will also stay financially secured.

  7. Write down a budget beforehand – Make a budget every month and write down where you need to use your credit card. For instance, you may need four swipes at the local grocery store, three swipes at restaurants and one swipe at a movie theatre. Stick to the plan and you will be able to keep your expenses in check.

  8. Use the hidden rewards – Credit cards often have hidden rewards such as travel insurance, free warranty on products, etc. Speak to your issuer and find out all the hidden benefits available on the card and use them to your advantage. 

The final word

When you use your credit card in the above-mentioned ways, you stand to make many positive changes to your financial health. You also get to make smart purchases and make the credit card work in your favor. 

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