You may be using your credit card for shopping and utility bills and collecting rewards but here are some pro tips for optimum use of credit card which you might not have been knowing. Here we go.

1. Know the billing cycle: The billing cycle is a period of 30 days which may starts from any date of the month. All the purchases made in that billing cycle will be reflected in bill which will have to be paid after 15 - 20 days from end of billing cycle depending upon the bank and credit card type. For example, if the billing cycle is 17 April to 16 May, then the due date of payment will be 1 June - 5 June depending upon bank and type of credit card. It means you get credit for 45 to 50 days for free. Now suppose you need to purchase something on 15 May then you can purchase it after 2 days so that the same will be covered in next billing cycle and its repayment will get another 45 to 50 days by just postponing the purchases by 2 days.

2. Payment within due date: Always try to make payment within due dates to prevent heavy interest charges. Although the banks provide free credit period for 45 to 50 days but they are very harsh at delayed payment. So, keep eyes on due dates. Sometimes the credit card payment could not be done due to any reason namely; you may forget the due dates in case you own multiple or there may be any technical issue in your bank or any other reason, then for the safe side you may choose for Auto debit option. Auto debit is a facility that you don’t need to remember the due dates, the due amount will automatically get debited within the due dates.

3. Always pay in full: Every time you receive your credit card bill, there will be 2 due amounts namely; due amount and minimum due amount. The minimum due is a trap. If you pay only minimum due amount then you will be charged high interest charges on remaining amount due. So always pay in full.

4. No cash withdrawal: If you need cash then do not use your credit card to withdraw the cash. The banks give you two limits, one is credit limit and another is cash limit. But never use your cash limit because the interest is charged on cash withdrawal from day 1. There is no free credit period of 45 to 50 days on cash withdrawal. Pro tip for the situation you need cash is go to any offline shop and purchase something and make extra payment to shopkeeper after taking his consent and telling your situation and take back the extra amount in cash from him. Or you can just pay him 1-2% of merchant charges and pay him through credit card the amount you need in cash. Please note use this tip only when you are in urgent need of cash and shopkeeper gives his consent other wise avoid withdrawing cash from credit card.

5. Low utilisation ratio: Your credit limit depends upon your CIBIL records like how frequently you pay off the credit card payment, utilisation percentage of credit limit and number of times the loan enquiry is made by you etc. Never cross the credit limit to prevent penal charges. Try to utilise your credit card up to 70% of credit limit. It will not adversely affect your CIBIL.

6. Own multiple but use the right one: Every bank offers some unique offer. Some offer for cashback, some offer for movie ticket, some offer for rewards points and many more. It is up to you which benefit you want to avail then use that credit card. Some times you get great discount on Amazon, Flipkart, and other online stores by using specific bank credit card.

7. Joining and renewal fee: This is very important thing you must check before applying credit card. Some banks charge high charges as joining fee for first time and renewal charges every year. Some banks offer zero renewal charges if purchases are made up to threshold limit in a year. So, choose a credit card which have no joining fee and no renewal charges.

8. Use for regular purchases: Use your credit card for regular purchases like grocery, clothes, food, utility bills etc. The more you spend the more rewards points you get. These rewards points get accumulated and it can be used for making payment of credit card bills, recharges, gift cards etc.

9. Report lost or missing credit cards: In case you lost your credit card then you should immediately turn off the options of ATM withdrawal, merchant outlet, online transaction, tap and pay in the app. Then block the card from app or call to customer care for blocking. It will prevent you from financial loss.

10. Monitor the credit card statement/account: Always check your credit card statement every month and credit card account on regular intervals. If you notice any unusual transaction then immediately inform the bank. Sometimes your bank charges for any reason then immediately inform them ask for reversal of charges in case bank charged by mistake.


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