- Date : 20/06/2019
- Read: 4 mins
Do you think that you are using your credit cards smartly and rightly? Read on to find out the 5 tips that ensure its smart use.
Credit cards have undoubtedly made women’s life easier. It has completely eliminated the need for carrying heavy cash, made our handbags lighter and not to mention the shopping discounts and rewards it bestows. These are a few reasons why it has become a necessity nowadays. Also, a credit card is more preferable than debit cards for an obvious reason that they can help you out in the times of financial crisis. Apart from that, there are lucrative rewards and offers that one can avail on using a credit card. It’s no surprise that credit cards are so popular but the question is: are you using it rightly?
Following are the five tips that will help you understand how credit cards should be used:
1. Pay the bills on time
There are heavy interest rates charged on late payments and why shell out extra money when you can totally avoid it? Not to mention how badly late payment affects your credit score. Apart from that a lot of people just make the minimum payment and think it’s sufficient to avoid any penalties or late charges. Penalties can be avoided with minimum payments but additional interest is charged on the balance amount. When you pay the minimum amount due, it is assumed that you will pay the interest charged later. However, that interest is charged from the date of purchase and not the due date of payment. This means eventually, you will end up paying a high-interest amount. So the thing to remember is that you should pay your credit card bills on time and in full.
2. Know your card
Knowing your card generally entails reading the fine print, knowing the joining and renewal fees, the late payment fees, analysing the bill and keeping a tab on charges that are levied. Being informed about the rewards and offers is also important. As women, we have different priorities like shopping, travelling, grocery, etc. Hence, it’s always better to have a card that provides rewards in the areas that align with our needs. These little things make a big difference and help you in comparing various cards and deciding which one is more beneficial to you.
3. Avoid using the card at ATM
Though you can avail of this facility in an emergency situation, it is always better to avoid using a credit card to withdraw money from the ATM. The main reason for this is that heavy charges are applicable on withdrawing cash through credit card. It wouldn’t be a reasonable use of credit card if it’s regularly used at the ATM.
4. Avoid opting for too many cards
Rewards and offers often lure people into buying too many cards with different benefits. Though it works for some factors, lots of other things are often overlooked. A good way of rectifying this is by asking yourself whether you really need that co-branded credit card. For availing the benefits of any co-branded card, your consumption of that specific brand should be high. If you are passionate to travel, you should buy the card that provides discounts on air tickets. If you are a house-wife, then you should buy a card that is high on retail discounts. The reward and offer structure of the card is suitable for you only when you consume large quantities of that brand. Thus, instead of blindly getting that card, you should analyse whether or not it actually helps your lifestyle.
5. Take care of the card details’ security
It is a common practice amongst spammers and fraudsters to misuse your credit card. One should always be alert about the security of the credit card as well as its details. Be careful while handing out the card and make sure you keep it in a safe place. Important details such as OTP, CVV number, Expiry date, etc. should not be shared with anyone. Secured payment gateways and POS machines are the only places to be trusted. Swiping your credit card in unsafe machines can lead to misuse and cloning of your card.
Though credit cards have become a way of life for women, a certain amount of attention must be paid on how to use them wisely and rightly. Only when one knows how to use the card smartly can one maximise its benefits and use it in a way that is more suited for their lifestyle. Check out these 5 Credit Cards tailored for women shoppers.