Not everyone knows how to use a credit card so that they can maximize its benefit. You have reached the right article, today we have listed below some of the ways that can help you in maximizing the benefits of your credit card. Without any further ado, keep reading to kick start your research.
Lets Find Ways To Maximise The Benefits Of Your Credit Card
Choose the right card: To maximize the benefits of your credit card you need to choose the right credit card first. Identify your needs and spending habits and then start comparing credit cards so that you can find the right card that matches your profile. Having the right card will help you save money and earn rewards easily.
Use your card more often: Once you receive the card, try to use it more often for those transactions that let you earn reward points in return. Read the rewards program of your credit card so that you know for which transactions using it will help you maximize the benefits. The more you use your card the sooner you will become eligible for the redemption process.
Utilize reward points: If you have accumulated enough reward points then redeem them against products, gift vouchers, booking flights/hotels, etc. Utilizing the reward points timely help you maximize the benefits of your credit card. Bear in mind that reward points come with an expiry date.
Take advantage of sign-up perks: On receiving the credit card you get sign-up bonuses as a welcome offer. Don’t let go of this opportunity and take the advantage of it as it will help you in maximizing your credit card’s benefits.
Take advantage of offers: Every now and then you get deals and offers on your credit card. If you find any deal and offer suitable that allows you to save money then you must take the advantage of it and avail of that offer.
Adhere to the Repayment cycle: On timely repayment of the credit card dues helps in maximizing the benefits of your credit card by building a good credit score and your credibility. In case you are someone who can easily forget the due dates then register for the auto-debit services and relax because on the due date the outstanding balance on your credit card will be debited from your account automatically.
Maintain a low credit utilization ratio: It is advisable to maintain a low credit utilization ratio between 30% – 40%. You can do so by setting a threshold limit on your credit card so that on reaching the limit you get notified about the same on your registered mobile number. This will help in protecting your credit score from getting affected adversely and thereby maximizing the benefits of your credit card.
Do not use your card to withdraw money: Never ever use your credit card at ATMs as they attract a processing fee. Only during emergencies, you can afford to use your credit card at an ATM, but for the rest of the time avoid it. You would not like to pay for withdrawing the cash. Instead use your debit card to withdraw cash from ATMs.
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