Hyderabad: Customers are lured by attractive offers and discounts on credit cards. No doubt, credit cards do fetch additional discounts of 5 to 10%. In this context, there is a need to note certain things while using them. Let's check out a few tips.
Know your card: What is the credit limit on your card? How much have you used out of it? How much is the bill due? Know about all these things. Check out reward points and billing due dates before making a new purchase. Only then, you will be able to know, which card has to be used and how the amount has to be spent.
At the outset: Usually, you will get 30 to 40 days time after making a purchase on the credit card. You can avail of this benefit only when the card is used at the beginning of the billing date. For example, let's say your billing date starts from the 8th, then purchases between the 9 and 15th will give you a time advantage.
Don't miss out on discounts: Some brands tie up with credit card companies and offer special discounts beyond the regular discounts. It is available mostly during festivals. Those who have two or three cards should know which card fetches them more discount by which they could save some money.
Also read: Old credit card: Keep it or cancel it, what to do with it?
Reward points: One needs to keep track of reward points offered by credit cards. Don't skip the chance to use them while making purchases. Do these points earn you cash back? Check it out. If you don't know much about it, call up card customer service centre and get all the details. Better to use a card that fetches you more rewards points on purchases.
EMIs: Many credit cards offer no-cost EMIs. If you don't have enough cash on hand, then you can utilise this opportunity. For such interest-free merits, sometimes you have to forgo some discounts. Whereas, some cards offer discounts and free EMIs as well. Make an informed decision over new purchases.
Also, ensure that you don't spend more than 30-40 per cent of your card limit under any circumstances and pay bills on time. Keeping arrears could dent your credit score. If you could use credit cards judiciously during the festive season, you will be benefited, says Adhil Shetty, CEO of Bankbazaar.
