The concept of ‘buy now, pay later’ is perhaps the biggest financial treat ever. Credit cards are becoming increasingly popular – not only because they enable big purchases, but because of their exciting rewards, discount offers and cashback programs too.
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The Mechanics Of A Credit Card
Credit cards offer a convenient cash-free solution to make large purchases. You can make equal monthly or quarterly repayments of the total purchase amount with only a small interest fee levied on it.
Even in the business and corporate sector, credit cards make it easier to keep a track of expenses and simplify the payment processes involved.
Tips To Make The Credit Card Work For You, And Not Against You
While credit cards are a financial blessing, swiping them irresponsibly can lead to a world of debt. Fret not, we’ve put together 7 simple ways to make the most of your credit card –
1) Always Read The Fine Print
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Many credit cards come with a package deal. It is important to know all the subscriptions, convenience charges and terms of use before you select a credit card for your purchases. You should also be aware of the minimum balances and spending limits to avoid any issues.
In fact, there are dedicated platforms that help you compare the various credit card plans before you make a decision. Finserv MARKETS is one such platform where you can compare all the top credit cards from banks such as Axis Bank, State Bank of India, Citibank, ICICI Bank, and pick the best package for your needs.
2) Monitor Your Purchases – Don’t Go Overboard
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It is always recommended that you buy only what you need when using a credit card. Else, you will end up spending on frivolous items. This will only add to the overall monthly credit card bill.
In the worst case, you may overspend and cross your limit just before an important transaction on your card. This can complicate the further payment cycles and affect your credit scores as well.
3) Save While You Spend With Credit Cards – It’s Possible!
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Many credit cards bring you delightful rewards and cashback schemes for making specific payments or purchases.
For instance, the Axis Bank Credit Card and the Citibank Credit Cards have separate Indian Oil cards which provide the user with rewards for using the card at any recognised Indian Oil vendor. Or, if you have a SBI BPCL Octane Credit Card, you will save a certain percent of fees at any BPCL service station.
Many such cards also provide reward points at retail store purchases and for in-app purchases. Learn more about how to maximise the utility of your credit card on the Finserv MARKETS platform by exploring and applying for the card of your choice.
4) Always Pay Your Bills in Full
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You should always pay your credit card bills in full to steer clear of late fees and other charges. This also helps you keep track of your current bill statuses and prevents recurring charges from being levied on your credit card usage.
Most banks reset the credit limit once you have paid the bills in full. They may also increase your limits with a rise in your credit scores.
5) Don’t Forget About The Reward Points
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One of the major benefits of using a credit card is to receive rewards and discounts from the bank. Many such credit cards offer a set amount of reward points for every transaction milestone crossed.
For example, if you opt for the SBI FBB StyleUp credit card, you will receive rewards for shopping at any FBB outlet in India. How cool is that!
6) Limit The Number Of Credit Cards You Use
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Don’t complicate your use of credit cards by opting for more than one card unless explicitly needed. Yet, it is understandable that you may have one card for personal use and one for business.
In this regard, it is recommended that you limit the number of cards to two or three depending on the scale of your expenses and your ability to repay within the given time frames. If you fail to repay within the deadline, your credit scores can be severely affected.
7) Choose Finserv MARKETS To Get Your Credit Card
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You can truly bring out the best in your credit card when you get it from Finserv MARKETS. Firstly, they let you avail a personal loan against your credit card limit and repay in easy EMIs. You can also convert your shopping bills (both online and offline) into credit purchases and pay through EMIs. Isn’t that a blessing! Hang on, there’s more. You will also receive regular discounts, coupons and rewards on subscriptions, bill payments and shopping at recognised outlets!
The contemporary tech-backed credit cards at Finserv MARKETS have a built-in fraud prevention system as well.
And if you’re hassled about the application process – we have some good news. Once your identity and financial records have been verified, Finserv MARKETS will send the credit card and account details within hours of the confirmation.
Credit cards, their perks and rewards are amazing. However, make sure to follow our simple tips and practice financial discipline to make the most of it.