Credit cards come with varied benefits, but responsible usage is key to maximising your savings. You need to check credit card offers if you wish to optimise the rewards that come your way.

Apart from getting discounts or freebies, paying in time is key to using a credit card without paying hefty fees and improving your creditworthiness. Here’s how you can manage your credit card optimally, avoiding unwanted results.

How Does a Credit Card Work?

You can use these financial tools to buy something right away and pay for it later. If you plan to renovate your house for this festive season, use your credit card. You can also use it when you’re planning a trip with your family to celebrate togetherness. 

Once you purchase something, you will need to pay it back when the billing cycle ends. You get an interest-free period of up to 55 days. If you don’t pay on time, you will need to pay late fees and interest on the balance. 

Tips to Use Your Credit Card Responsibly

To use your credit card properly, know your card inside out. This way, your finances will be healthy now and in the future. 

Understand the Fee Structure

While picking your credit card, look at and compare various charges you must pay. Based on your requirements, pick a car with the lowest fees that match the rewards you want. The fees include:

• Joining Fees
• Annual Charges
• Late Fees
• Purchase APR
• Penalty APR
• Cash Advance APR
• Balance transfer APR
• Foreign Transaction Fee

You can even find credit cards with zero fees. Such cards generally do not charge joining or annual fees for the first few years. Some cards are even lifetime-free, which means you do not have to pay any charges to keep them active.

Read Your Credit Card Statement

Go through your statement each month. If you find any discrepancy, contact the lender and inform them immediately about the issue. Check the following details when reading through your credit card statement:

• Minimum payment due
• Payment due date
• Your total credit card balance
• Your available credit limit
• Purchases you made within a billing cycle

Learn About the Terms and Conditions

Every credit card will have its separate terms and conditions for offers and features. Here are some points that you must keep an eye on:

• Rewards Program: Learn about promotional, introductory and milestone reward points as well as which category offers maximum points

• Discount Offers: You must check credit card offers exclusive to your issuer every 3-6 months as they keep changing, and use them to save more

• Purchase Protection/Insurance: Choose a card that offers purchase and travel insurance covers to secure your financial well-being and read the inclusions and exclusions 

Use Your Rewards Optimally

Credit cards are seen as more valuable than debit cards because you can get added rewards and benefits. Every credit card has its exclusive benefits, deals and discounts. Some credit cards have dining benefits, and some have travel discounts. If you are a foodie, go for dining credit cards; if you love to travel, go for travel discount credit cards. 

Know which transactions give you most points, so you can swipe for those. Also know when points expire, so you can redeem them on time. Knowing the rupee value of the points is also important, as you can even pay your dues with points. 

Keep Your Balance in Check

While paying your bills, clear all your dues. In this way, you do not have an accumulated carry-forward balance each month. Also do not exhaust your credit limit every month. 

You can also set reminders and get notifications, so you are always in the know. Otherwise, it will be difficult to pay the bill the following month. 

Pay Bills on Time

Make it a habit to pay your credit card bill before the deadline. This will help you improve your credit standing. Remember, paying the minimum due is an option but not the best way to go. You must learn what happens if we pay the minimum due on the credit card. In this case, you will avoid any late payment charges, but interest charges will still apply. 

Use all this information to develop healthy credit card habits. This will ensure better financial health and, moreover, a better credit score in the future. If you want a card that provides easy tracking of your credit card vitals, get the One Credit Card.

You can get 5X reward points on your top two spending categories. Alongside, you can access amazing discounts on electronics, groceries, and dining. To start your journey, apply now.