With the effects of demonetization still lingering in the air, many individuals now prefer using credit cards over real money. Now, plastic money is king but there are still certain troubled waters you encounter when it comes to repaying the “credit” owed. Here are six smart ways to make certain you are using a credit card in a great way.
1) The right credit card helps you save up on a lot
Wouldn’t it be great to save up on money while you spend? Well, this is very much a reality if you use the right credit card. For instance, using a Citi Cash Back Credit Card gives you back 5% cash every time you pay telephone bills, utility bills or purchase movie tickets. Similarly the Indian Oil Citi Platinum Credit Card is a fuel credit card that helps you save up on the amount you spend on fuel.
2) It is easier and more hassle-free than carrying cash
The most important advantage of using credit cards is the ease and efficiency with which you can make your payments. You also get a longer time to repay the amount you have spent and you don’t even have to run to the ATM, every time you are short on cash. Make sure to keep a watch on your billing cycle date. If you time your purchases for after the billing cycle date, you can postpone payments to the following month.
3) Cards help your poor credit score
You may have a poor credit score as a result of a stupid mistake made on your personal or home loan when you were younger. This may have resulted in poor credit scores that follow you wherever you go even today. If you choose the right credit card, you can improve your credit score as spending regularly and paying it off on time can help you a great deal.
4) Buying on EMI
If you want to buy something that is costly, a debit card can give you a hard time but a credit card gives you a choice. It helps you convert your purchase into an EMI. In this way, you can repay the outstanding amount in easy installments.
5) Don’t neglect or turn away from reward points
Reward points actually help you save a lot. Many credit cards give you reward points on certain purchases. Some credit cards also give you 10 reward points on every INR125 spent, whether purchased online or in a retail shop while for other purchases you earn one reward point for a Rs. 125 purchase. These points can later be redeemed as cash back into your account.
6) Take into account emergency payments
Medical expenses, air tickets for an important trip or any other major expense can occur out of the blue. Breaking a fixed deposit or any other saving will usually require 24 hours at the least. A credit card can be used straight away and so is a boon in emergency situations. This purchase can be transformed into a three or six month EMI.
Be certain to get in touch with your credit card company soon after you make a big purchase to enquire about your EMI alternatives. Keep a record of your purchases, spend on those things you know for a fact you can repay and pay the full amount. With these smart moves, credit cards will definitely turn to be your preferred mode of payment. After all, it’s really easy when you know how.