Use of Credit Card in India

Credit cards can be extremely beneficial, provided they are used wisely and judiciously. These cards offer us greater convenience in terms of making payments and completing transactions and eliminate the need of carrying liquid cash. Additionally, credit cards also offer numerous benefits, such as reward points, cashbacks, discounts and other offers, which translate to greater savings. Unlike debit cards, credit cards come with supplementary benefits, which significantly enhance the user experience.

That said, it is important to be prudent while using a credit card and avoid falling into debt traps. Here are some ways in which you can discerningly use a credit card and make the most of the benefits these cards extend.

Credit Card Tips

  • Take advantage of the grace period

    The grace period constitutes the billing period of 30 days along with an additional 15 to 20 days window between the statement generation date and the payment due date. Hence, the total interest-free period can extend up to 50 days.

    Making an expensive purchase when the billing period commences thus enables you to take advantage of the full grace period.

  • Use the right card for the right purchase

    Make sure to learn the use of a credit card in India if you hold multiple ones. For example, use your fuel credit card if you spend a considerable portion of your income on fuel purchases. You can earn accelerated reward points apart from enjoying fuel surcharge waiver.

    Contrarily, use your travel credit card to book flight tickets, hotels, etc. Using the wrong variant will reduce the number of reward points accumulated and simultaneously you benefit less from your credit card.

  • Opt for a personal loan during emergencies

    Credit cards like the Bajaj Finserv RBL Bank SuperCard enable you to convert your unutilised credit limit into an emergency personal loan for an interest-free period of up to 90 days.

  • Convert your purchases into EMIs

    One of the exceptional uses of a credit card is that you can convert your purchases into EMIs and repay them affordably.

  • Shop online to earn the most reward points

    Credit cards give you 2x reward points when you shop online. Learn how to use a credit card online to maximise your rewards.

  • Redeem your reward points

    You can redeem your reward points get discounts on flight tickets, hotel bookings, etc. These points can get you exclusive shopping vouchers recharge vouchers and even cashback at times.

    These were some of the simplest tips on “how to use credit cards” that can be practiced to reap the maximum benefits out of these. Remember to always pay the total amount due within the grace period to avoid incurring additional interest charges on the outstanding dues. Doing so will also improve your credit score significantly.

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