Credit cards can be very useful if you use them wisely! They offer great deals, cashback, and rewards that can make life easier. But are you getting the best out of your credit card? Here are five easy tips to help you save money, improve your credit score, and make your credit card work better for you!
Most credit cards offer rewards points or cashback on purchases. These rewards can help you save a huge amount over time. Here’s how to maximize your benefits:
Understand the Rewards Structure: Each card has a unique rewards system. Some cards offer 5X rewards on dining and 3X rewards on travel, on the other hand, it may give cashback on groceries or fuel.
Target Big Rewards Categories: When making big purchases, choose categories that offer the most reward points.
Redeem Smartly: Don’t let points expire! You can redeem them for gift vouchers, flight bookings, or even a statement credit.
For example: Using a cashback credit card to pay your utility bills helps you save money on things you already pay for. Look for cards that give you 1.5% to 5% cashback on everyday spending.
Did you know there’s a way to extend your interest-free period? It’s all about timing your purchases:
Understand Your Billing Cycle: Each credit card has a specific billing date. If you buy something at the start of the cycle, you have more time to pay it off without interest. If you buy close to the due date, you have less time.
Time Big Purchases Wisely: For big purchases, try to buy right after a new billing cycle begins. This gives you more time before you need to make the payment.
Example: Suppose your billing date is the 10th of every month. If you buy something on the 11th, you’ll have until next month’s due date (say the 5th) to pay, giving you almost 50 days without interest!
Your credit utilization ratio (how much of your total credit limit you’re using) impacts your credit score. Below 30% is ideal for a best for CIBIL score.
Spread Your Expenses: If you have more than one credit card, use them all instead of maxing out just one.
Stay Below Limits: Keep your spending under 30% on each card. This helps your credit score stay healthy and lowers the risk of any drops.
Suppose you have two cards, each with a ₹1 lakh limit. Instead of spending ₹70,000 on one, spread the ₹70,000 over both cards (₹35,000 each) to keep your utilization ratio in check.
If you have debt on one credit card, you can move that debt to another card that charges little or no interest for a limited time. This can help you save money on interest.
If you move your debt to a credit card with low or no interest, it helps you pay it off faster and saves you money.
Just make sure to pay off the full amount before the low-interest time ends, or you could end up paying more interest.
Example: If you owe ₹30,000 on a card with a 24% annual rate, transferring it to a card with a 3-month, 0% interest offer on balance transfers could save you ₹1,800 or more in interest in just three months!
You can use many credit cards to pay for big items in smaller monthly payments instead of all at once.
If you buy something over a certain amount, like ₹5,000, you can choose to pay in monthly installments right when you buy it or later.
Some cards offer 0% interest on these payments during special times, like holidays.
If you're buying something expensive, like a gadget or a vacation, check if your card has these low-interest or no-interest options. This helps you afford it without spending all your savings at once.
| Credit Card Hack | Key Advantage |
|---|---|
| Maximize Rewards and Cashback | Earn back on every purchase with reward points and cashback |
| Optimize Statement Cycle | Extend interest-free period up to 45-50 days |
| Split Purchases for Credit Utilization | Helps maintain a low credit utilization ratio for better CIBIL score |
| Use Balance Transfers | Reduce interest burden on high credit card debt |
| Leverage EMI Conversions | Manage large purchases with low or zero-cost EMI options |
Credit cards can be great for saving money, improving your credit score, and making purchases easier, but you need to use them wisely. By following these tips, you can get more benefits from your credit card in India. This will help you earn rewards on daily spending, avoid paying extra interest, and manage bigger expenses better.
If you learn these tricks, your credit card can become a useful financial tool. So, the next time you use your card, remember these tips and find ways to make your money work better for you!
Yes, but only if you can manage them responsibly. Having multiple cards can help you with a low credit utilization ratio and increase your total available credit.
If managed well, they can actually help your score by reducing high-interest debt. But avoid accumulating more debt after the transfer.
Ideally, keep your utilization below 30% of your credit limit on each card for a healthy CIBIL score.
Can I convert any purchase into an EMI?
Generally, yes. Many cards allow you to convert purchases above a certain amount into EMIs, but some items or transaction types might be excluded based on the bank’s policy.
No List Founds!
Your email address will not be published. Required fields are marked *
