If you Have Credit card? Keep these things in mind, to take benefits not loss. In this post we learn how to use credit card and what is its benefits and losses. If you use credit cards with some precaution it will be beneficial for you.
I have four credit cards. Each card is associated with a specific need. The first is the Air Miles card which gives benefits like free air tickets. Second, cashback on e-commerce shopping, thirdly shopping through no-cost EMI and fourthly giving petrol rewards. I pay the bills of all the cards in full every month. But sometimes it happens that the payment is not known on time, due to which my credit score gets bad as well as extra charges have to be paid, but is it right to have so many cards?
Also read how to get loans on insurance policy
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How many credit cards one should have? :
Basically, there is no measure of how many credit cards one should have. You can have as many credit cards as you want. There is no such thing as right or wrong in this. The wise thing to do is to use all the cards responsibly. Understand your needs. Keep a clear account of expenses. Try to figure out which cards can help you save with expenses. Generally, discounts, cashback, EMI facility, special offers etc. are available on credit cards. They can make life easier.
If you have Credit card? Keep these things in mind :
Discounts, cashback, EMI facility, special offers etc are available on credit cards. They can make your life easier. But Before taking a credit card, keep these things in mind, otherwise you will be in trouble :
- Do not apply for multiple credit cards at once
- Pay your credit card bill in full on time
- Use credit card regularly
- Use all different credit cards for different benefits
- Use credit card as per your requirement
Do not apply for multiple credit cards at once:
Do not make all the applications for multiple credit cards or loans at once. Whenever you make such an application, the bank checks the credit score. Such strict checking will result in a slightly lower credit score each time. If you apply for multiple credit cards at the same time, your credit score will work regardless of whether you take the credit card later or not. So definitely keep in mind that no matter what the loan is, you have to apply for only one loan at a time.
Pay your credit card bill in full on time:
You will be able to avail the full benefits of a card only if you pay the bill in full every month. If this is not possible, then interest will be charged on the expenses. All profits may prove to be worthless due to interest.
It has happened to me that I bought only 1200 rupees with credit card, but due to non-payment on time, I had to pay more than 800 rupees. Due to which instead of getting benefit from the credit card, there was a lot of loss. Sometimes their charges are very high. So we should always pay attention to pay all the amount on time and complete it.
Use credit card regularly:
If you have a credit card, keep using it. Any card can be deactivated if it is not used for more than a year. And if you use the credit card regularly, the annual fee for some cards is also refunded. And using credit card regularly also makes more reward points, which we can use to buy different things. So use your card regularly, even daily or once in a month.
Use all different credit cards for different benefits:
Each card has its own benefit. See if you need it or not. Don’t get a fuel card if you don’t drive a lot.
And use the right card at the right place, if you are shopping online, then check out which card is getting more discount on purchase and how many rewards points are getting.
Use credit card as per your requirement :
Use credit cards only when you need. Not spend to much from your credit card and not use 100 % money. If urgent then can use 100% money but deposit it as soon as possible. because using 100%, will effect on credit score.