Credit cards come loaded with features that can make every purchase of yours worthwhile. However, make sure that these features don’t set you off on a spending spree and leave you in a pile of debts before you apply for credit card. That is the worst scenario when using credit cards. Because failing to clear the debts can invite huge interest rates and late payment fees. Furthermore, it can also hurt your CIBIL score and reduce your creditworthiness.
Hence, you have to be responsible while handling your credit card and adopt some important financial habits. Here are some important things you need to remember when using a credit card.
- Look at the minimum amount due
Your credit card bill payment will come with two amounts – total amount due and minimum amount due.
The total amount is what you have spent using the card and which you have to pay off within the grace period to avoid interests. On the other hand, you can pay the minimum amount due if you don’t have the required cash to pay in full.
This minimum amount is generally a specific percentage of the total due. This percentage depends on the company and the type of expenses you have made. Typically, the percentage varies from 3% to 5% but can be more than that as well. The percentage can also include the interest of the total amount.
However, you will still have to pay the full amount which will reflect in your next month’s bill. Further, your credit score will also decrease.
Hence, consider your earnings, expenses and limitations to evaluate your repayment capability before you apply for credit card.
- Take your credit limit into account
The credit limit is the maximum amount that you can spend with your credit card. Spending more than the pre-set limit will invite over-limit charges. Your rate of interest may also increase if you do so. Lastly, your credit score takes a bad hit if you spend more than the set limit.
It is recommended to keep your expenses within 30% of this credit limit. Doing so improves your credit score over time, and you will be able to apply for more credit cards like Bajaj Finserv RBL Bank SuperCard.
The card comes with security features like In-hand security and Zero-fraud liability cover. You also get up to 20,000 reward points as a welcome bonus. Furthermore, this credit card brings several industry-first features.
You can take an emergency loan for up to 90 days without paying any interest. This card also enables interest-free cash withdrawals from ATMs for up to 50 days.
- Protect your card information
You must make sure that your information is protected at all times when you apply for credit card. Ensuring to take a few steps keeps you safe online even though websites provide you with superior protection.
- Always go through your monthly bill. Doing so lets you know whether there are any unauthorised transactions. Report any such transaction immediately if you come across one.Furthermore, you must also ask for a new card number if you feel someone has got the existing one.
- Use precautions when swiping your card for making payments. Numerous POSs are rigged by scammers to collect your personal data and information.
- Opt for the right credit card
Lastly, apply for credit card that best suits your lifestyle. For example, go for an airline credit card if you fly frequently. If you purchase an extensive amount of groceries every month, then avail retail credit cards. Take a fuel credit card if you spend too much on fuel. Likewise, you can go for an entertainment credit card in case you are a movie buff.
Remember the above points to use your credit card more lucratively. You can go for Bajaj Finserv RBL Bank SuperCard and take advantage of all the features mentioned above.
Bajaj Finserv also brings pre-approved offers on these credit cards that reduce the time taken for availing financing. Pre-approved offers come with several financial products and services including personal loans, business loans, home loan, etc. You can find your pre-approved offers by providing only a few essential details.
The credit card online apply procedure with Bajaj Finserv is also simplistic, and you can complete it within a few minutes.