New Delhi. Credit card has become an everyday necessity in today’s time. Tasks like online shopping, bill payment and travel booking become easier with this. If used properly, credit cards provide benefits like cashback, discounts and reward points. But swiping again and again without understanding the rules can also cause financial stress in future. It is very important for first time credit card users to know some important things.
Choose a card according to your lifestyle
Not every credit card is the same. Different cards are made keeping in mind different needs. If you travel a lot, a card with travel benefits, hotel offers and lounge access will be better for you. At the same time, for those who like shopping, a card with cashback or reward points is more beneficial. You can lose many benefits by choosing the wrong card, so understand your spending habits before applying.
Use reward points on time
Reward points received from credit cards are useful only if you use them on time. Many cards offer more points on certain expenses, which is important to be aware of. Also, most reward points have an expiry date. If you do not redeem them in time, your hard-earned points may become useless.
Avoid using up your credit limit completely
Credit card limit is your spending limit, not a target. Using the full limit can damage your credit score. Try to use only a small part of the total limit. This signals to banks and credit agencies that you are using credit responsibly. Less usage and timely payments strengthen your financial health.
Pay your bill in full and on time every month
It may seem easy to pay only the minimum amount, but this leads to heavy interest charges on the remaining amount. Gradually this interest can increase so much that it becomes difficult to manage the debt. Paying your bill in full every month not only protects you from interest, but also keeps your credit score strong. This habit can save you from big financial losses in the long run.
Think before falling into EMI trap
Credit card EMI makes big expenses easier, but not every EMI is beneficial. Many times these include high interest or hidden charges. Before converting any purchase into EMI, read its complete terms and calculate the total expenditure. Used with the right understanding and planning, a credit card can become a strong financial tool for you. A little vigilance and discipline can make every swipe a wise decision.
