Credit cards are useful when it comes to paying up for items that you desire. However, bear in mind that there is a cost attached to this as well. These are some of the ways in which you should know how to use a credit card in a disciplined manner:
- Track your spending habits- You can go out of control in terms of spending with your credit card and if you are blissfully unaware about spiralling debt, it can snowball into a problematic financial situation. Be disciplined while using your credit card in order to avoid piling on debt that you cannot afford.
- Timely payments- Always check due dates for payments of credit card bills and do not miss the same. There are added charges in terms of late payment fees and interest that you will bypass with a little discipline. You can consider direct debits from your account in order to stay on time with payments. Make sure that you pay at least the minimum amount to be repaid every month.
- Prioritize credit card payments: Even if you pay the minimum amount, you will still be accumulating sizable interest. This could take you a long time to repay. As a result, consider paying the credit card bill in full as much as possible or at least more than the minimum amount. Try and get a credit card that has a lower rate of interest and repay more whenever you can.
- Choose your credit limit wisely- You should pick the credit limit wisely. This should be the amount that you can afford to repay easily and a sum which is enough to cover all your needs.
- Avoid paying with credit cards for basic expenses: Credit cards are not ideal for covering basic expenses due to the high interest costs involved. They are suitable for sudden emergencies and the like. Try and cover basic costs yourself without resorting to the card. Bajaj Finserv RBL Bank SuperCard as the name suggests, is going to offer superb features, many of which are the first in the industry. Check out its features and benefits today since this is one card that you can certainly opt for.
- Store Card Usage: You may feel tempted to indulge in a store card in case you are a regular customer at any retail store. What you buy at this store may help you get rewards points or even discounts among other benefits. However, make sure you know what you are signing up for and check out the terms and conditions carefully.
- Have a clear idea of credit card statements: Make sure that you are in the loop on credit card statements every month. Scrutinize them carefully and keep a lookout for any extra charges/fees which you do not know of. Always check out for transactions which you have not made or direct debits from your account that you have not authorized. In case there are transactions not made by you, reach out to your card issuer instantly.