Rahul’s family loved shopping online. But that meant he was shelling out huge sums of money every month. Considering the rising expenses, Rahul decided to get a credit card and use the rewards and benefits to manage his funds better. That’s when Rahul finally got an instant credit card by applying online. While his instant credit card arrived quickly, Rahul was confused about how to make the best use of it. So, he turned to his friend Satish for help. Satish met Rahul the following Saturday and told him how he used his own credit card smartly and saved money.
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Set a Credit Limit
It is important to set a credit limit for the card. This way, users can control how much they spend using their credit cards.
However, it is important to check the finances and monthly spending and set a credit limit accordingly. This was because if the set limit was too high, users could be tempted to overspend. On the other hand, if the credit limit is too low, users might fail to make any big-ticket transactions.
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Avoid Late Payments
Avoid making late payments on a credit card. This was because, in the case of late payment, one might be charged interest on the bills paid after the interest-free period and a late fee for the unpaid balance.
In addition, it is necessary to activate text or email alerts for bill payments. These alerts would send notifications before the bills were due so that you can clear the bills on time.
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Use Your Credit Card Reward Points and Offers
Different types of credit cards offer rewards and benefits on purchases. These included vouchers, gift cards, travel miles, access to airport lounges, points that users can redeem for rewards in cash, etc. And some came with expiration dates.
However, it is important to carefully check the card reward points before choosing a credit card. This way, users can always redeem the reward points before the expiration date and get more out of his credit card.
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Set up Automatic Payments
It is beneficial to set up automatic payments by contacting the card operator. Since the credit card bill amount is automatically deducted from the savings account, users never have to worry about a missed bill payment.
However, it is also important to ensure that the savings account of the user has enough funds to cover the bill payments. This way, auto-payments wouldn’t result in overdraft fees.
In Conclusion
Rahul thanked Satish for sharing amazing tips on smartly using a credit card. The first thing he did after his conversation with Satish was call his credit card operator to set credit limits and set up automatic payments. He also researched the reward points he could use on his credit cards.
After all this, Rahul was confident he could use his credit card optimally, despite his family’s heavy spending.
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