Reduce your credit card interest payments with these 4 tips
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Reduce your credit card interest payments with these 4 tips

  • Highlights

  • Clear outstanding credit card dues before the due date

  • Pick a credit card that allows you to shop on No Cost EMI

  • Replenish the cash withdrawn through your credit card

  • Get interest-free withdrawals and an emergency loan with the Bajaj Finserv RBL Bank SuperCard

You can boost your purchasing power and add more flexibility to your monthly budget with a credit card. On the other hand, using your credit card carelessly can have the opposite effect. It can land you in a debt trap that will require a great deal of time and efforts to clear. However, with some financial discipline, you can use a credit card to build your credit history and avail better interest rates on any credit that you may avail in the future.

Get started by taking a look at the things you can do in order to reduce the interest you pay on your credit card.

1. Clear outstanding credit card dues before the due date

One of the best things you can do when you have a credit card is to make sure there are no outstanding dues. Instead of paying just the mandatory minimum amount, clear your entire bill each month. When you don’t, the balance gets forwarded to next month’s bill but multiplies too, owing to a high interest rate. When you clear all your dues, your credit score dramatically improves. Over time, this makes you eligible for offers, increased credit limits and other benefits.

2. Pick the right credit card for interest-free features

You can save money by choosing a credit card that offers you interest-free benefits. For instance, typically, when you use a credit card to withdraw cash, not only do you have to pay interest immediately, you also have to pay a transaction fee and a service charge on this fee. But, when you choose a credit card such as the Bajaj Finserv RBL Bank SuperCard, you can make cash withdrawals from an ATM and pay zero interest for up to 50 days. You can also avail an emergency loan for up to 90 days, once a year, on an interest-free basis. Therefore, choosing the right credit card will go a long way in keeping your interest payments to a minimum.

3. Consider availing EMIs if you are on a tight budget

When you make larger purchases, choose to pay via EMI so that your payment is split over several months and doesn’t burden one month’s budget. But, before you do so, check your credit card offers to reduce the interest obligation when you shop on EMI, or eliminate it altogether. For instance, if your credit card allows you to shop on No Cost EMI, you can not only make purchases more affordable, but also clear your monthly credit card bill in full, as you don’t have to pay any interest on this facility.

Shopping online made easy with the SuperCard

4. Replenish cash withdrawn through your credit card

When you withdraw cash using your credit card from ATMs, you have to pay an interest on the amount and a processing fee. Replenish the amount you withdraw at the earliest to keep the interest payment to a minimum. Also, remember that when you choose the Bajaj Finserv RBL bank Credit Card, this isn’t something you have to worry about. You only have to pay a flat 2.5% processing fee and nothing beyond this amount.

By paying attention to how you use your credit card and make payments towards it, you can minimise interest out flow and build your credit score. In the long run, this will help you secure a better rate of interest on a loan that you may want to take, and will also qualify you for a higher credit limit and better offers on your credit card. So, once you check your eligibility for a Bajaj Finserv RBL bank Credit Card, use your pre-approved offer and expedite the process of availing a SuperCard.

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