Finance

Published on September 10th, 2022 | by Ali Dino

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How to Get Maximum Benefits From a Credit Card

Credit cards are one of the most valuable financial tools. A credit card can help you make large purchases, spread the cost of those purchases over time, and manage expenses conveniently. Moreover, with every purchase made using a credit card, points are earned, which can later be redeemed for shopping, travel, and other expenses.

But it’s essential to learn how to use a credit card correctly to make the most of its benefits. Here are some crucial tips you can follow to maximize the benefits of your credit card.

1.  Get the Right Credit Card

Maximizing the benefits of your credit card starts with using the right card for your spending patterns. For example, if you are a frequent shopper, you may want to consider a shopping credit card. Or, if you travel frequently, you may want to consider a travel credit card. By choosing the right card, you can ensure that you are earning as many rewards points or cash back as possible.

2.  Redeem Your Reward Points Before They Expire

Many credit cards offer points that can be redeemed for cash back, merchandise, travel, and more. But most reward points have an expiration date, so keeping track of your balance and redeeming your points before they expire is essential. Additionally, the redemption process can vary across credit card providers and credit cards, so always read the terms and conditions before making a purchase.

3.  Use Your Card Regularly

You may have one or two great credit cards with many rewards and benefits. However, you won’t get the maximum rewards if you use it occasionally. To get more offers, cashback, and rewards, you need to use your IDFC FIRST Bank credit card for your day-to-day spending, such as shopping online, booking tickets, paying bills, etc.

4.  Use Merchant-Specific Discounts

Credit card issuers often offer merchant-specific discounts to encourage users to shop. These discounts are often given in categories like travel, fuel, and everyday purchases. You can easily find the latest merchant-specific discounts on your credit card on your issuer’s website and take advantage of these offers via net banking or phone banking.

5.  Maintain Your Credit Score

Your credit score is crucial as it impacts your ability to get loans. A low credit score could lead to higher interest rates and rejected applications. So, pay your bills on time, and never miss a due date to avoid unnecessary credit card charges or rack up a bill you certainly can’t afford. Keep a budget when you shop and plan your repayments before using your card, particularly for large purchases.

6.  Get Multiple Credit Cards

Having multiple credit cards can help you better manage your expenses. Credit card issuers often have tie-ups with retailers and service providers. So, the more cards you have, the greater your chances of taking advantage of their deals.

7.  Use a Credit Card Limit Calculator

Every credit card comes with a credit limit. Knowing your credit limit ensures you don’t overspend. A credit card limit calculator can help you calculate your gross and net salary.

These are important details since your gross salary is the total amount of money that you earn in a year. Whereas your net salary is the total salary that gets credited to your bank account every month.

The details you need to enter in a credit card limit calculator are your basic salary, your monthly housing allowance or house rent allowance (HRA), and your fixed monthly allowance. After knowing your current credit limit, you can also request the bank to increase it if you wish to do so.

You can choose different IDFC FIRST Bank credit cards according to your needs. From cash back to travel rewards, there’s an IDFC FIRST Bank credit card that can fit your specific lifestyle. However, you must ensure that you use your credit card wisely.

Although a credit card is a valuable tool, ensure that you avail and use it as per your financial ability and requirements. Avoid overspending and using it for everything as it may land you in debt. Also, it is best to always compare credit card interest rates and other fees of different issuers before applying for the right card.

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