A credit card is the ideal financial tool if you know how to use it to your benefit. You can avail advances through your credit card and enjoy interest-free period of up to 50 days. You need not pay additional interests once you repay the utilised amount within this grace period. Using credit cards the right way is essential to get the most out of them.
1. 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.
2. Use the right card for the right purchase
Make sure to learn the use of a credit card 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.
3. 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.
4. 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.
5. 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.
6. 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 credit card
usage methods that can practice 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.