Did you know that you can use your credit card and its features to maximise the value of your funds? This is possible only when you act responsibly and pay off all your due payments in time. One of the best ways to maximise the availability of funds is to list out your expenses and to plan keeping in mind the offers and benefits available with your credit card.
When you make an online application for a credit card, do check the benefits available with it. You can then use these features to your advantage by planning your expenses accordingly.
Here are a few tips to maximize your funds by using a credit card:
Avail of Short-Term Credit–
Your instant credit card offers you access to short-term credit which can be utilised to pay off your monthly utility bills, buy groceries or spend on air tickets. The only way you can avoid paying interest on these expenses is by ensuring that you pay back this amount before the due date.
However, if you fail to do so, the outstanding balance will attract interest charges which may reduce the value of benefits derived.
Use Your Credit Card to Improve Your Credit Score–
Submitting multiple applications for credit cards can hurt your credit score. Instead, apply for only one or two cards and ensure that you make your due payments in time. Timely payments will boost your credit score and make you eligible for future loans, an enhanced credit limit, or a lower interest rate.
Get the Right Card–
If you wish to maximize the benefits of using credit cards, you should apply for a card whose reward points or benefits match your requirement. If you are a frequent traveler, go for a card that offers free lounge access or discounts on air tickets, or if you travel by car or scooter every day and purchase fuel frequently go for a card that comes with special offers on fuel purchases.
Again, if you are looking for cash discounts, go for a card that converts your reward points into cash back.
Use the Reward Points–
You can optimise your card spends in such a way that you save more. Go for a card that offers good reward points on grocery shopping. Again, look for a card that offers good reward points on purchases from your regular shopping sites like Amazon.
Similarly use the offer of spending over Rs. 20,000 per month and get rewarded with extra points which can be later redeemed.
Keep in mind the reward point caps-
Many times your credit card issuer may put certain riders such as a limit on earning reward points on certain purchases. Similarly, certain benefits may be available only when you shop from a particular store or a website. Take note of such riders and use them to your advantage to get the maximum benefit.
Identify your expenses, search for cards whose features can benefit, check your eligibility for such credit cards, and finally submit your application. Once you get the card use its features to maximise your benefits and plan your expenses and their timing accordingly.
