I have seen many suggesting to be careful while taking a credit card as it may dump you in problems.
You need to use the Credit Card wisely. They are a lot of benefits which the card services provide; many of us would simply ignore and look at other options.
Not to mention you do not need to provide any collateral security to obtain a credit card from any bank.
After you swipe the card you will have a 45 day period until you can repay it. This is like the credit card company pays for you and will give you 45 days time to repay it without any extra charge, which is really useful for everyone. You will only repay the amount you have utilized. Not a single penny extra.
1. No Annual Charges:
Take a card which does not have any annual fees. There are some cards which come as a life time free card and never charge you annually. These kinds of cards are of great benefit to you. If a card is free for only the first year, take the card enjoy the benefits and cancel it at the end of the first year or change to another card which is free for the first year.
2. Bonus points :
Always choose a card which has the bonus points. There are some cards where they have exciting offers before you first swipe, take advantage of all those. Also take a card where you can cash the points instead of just exchanging them for some products.
3. Balance Transfer:
If you have multiple cards, transfer the remaining balance from one card to another before the due date. If you have the option you can also transfer the credit balance to your bank account or withdraw cash from the card and lend it for a higher interest.
4. Swipe the Card:
Swipe your card for your friends, take the money and pay the bill. By this way for each swipe you will accumulate a lot of bonus points which you can use for your own. You can also swipe the card for your friends, take the money from them and pay the balance in three or six interest free EMIs.
You can pay the minimum amount and can circulate the remaining amount for other purposes. Regular payment will keep your PR rate (credit ratings) at high, thus low interest and more points to your account.
Other Important points to remember :
You should increase the credit limit gradually when your card account is in good condition.
When you think you get more returns for your investment through credit card use it and then pay the amount back in 45 days.
Check this option as some banks will give you credit card at a very less interest rate when you also have a current or savings account opened with the same bank.
Before you apply for a credit card compare them with different cards of different banks and take the card which gives you at a lower interest rate and much bonus points.
Read reviews and tips from all the internet community or any banking forums so that you will understand the different trends in credit cards.
Utilize your cards maximum when you have the cash back offers. Cash backs are a great way of marketing for the banks, it s also very useful for the members as you can enjoy the maximum benefits.
