A credit card is a beneficial financial instrument, which supports you in times of need. At the time of lack of money, it does not allow you to ask for a loan from anyone.
The festive season is going on and these days shopping is being done openly. To decorate the house, to celebrate festivals, to buy gifts for friends and relatives, shopping is being done fiercely. And why not go shopping, this is the time to celebrate happiness. Now after two years the opportunity has come to celebrate Diwali openly. The last two Diwalis passed silently because of Corona.
You are shopping for festivals, but do it carefully. Especially if shopping is being done by credit card then more understanding is needed. Many times, shopping done with enthusiasm gives less happiness and more trouble. Here we are discussing the precautions to be taken while using the credit card-
Use of Credit Card
In the true sense, a credit card is a beneficial financial instrument, which supports you in times of need. At the time of lack of money, it does not allow you to ask for a loan from anyone. The need of money for a short period of time can be easily met through a credit card. You also get rewarding points for paying your credit card bills on time. Your credit score also improves.
Therefore, to get the maximum benefit from the credit card, it has to be used wisely.
Payment of bills on time (Credit Card Bill Payment)
The biggest wisdom in using a credit card is in paying its bills on time. Bills should be paid within the stipulated time. In case of delay in payment, higher interest rates have to be paid. Paying credit card bills on time also helps in maintaining your credit score.
Make purchases at the beginning of the billing cycle (Credit Card Shopping)
The credit card comes with a payment due date and extended overtime for purchase bills in each billing cycle. Therefore, you should make purchases at the very beginning of the card’s billing cycle.
Make sure to check the card statement while shopping with a credit card. You should spend according to your paying capacity.
The statement should be checked from time to time. In this, information about benefits like Reward Points, Reward Points to be redeemed keeps getting information. With this, we can take more advantage of the credit card.
Credit card statement A credit card statement
is a document of all the transactions related to your credit card in a particular billing cycle. It contains all the information related to your card like total billing cycle amount due, lowest payment amount, payment due date, current credit limit, reward points you have earned, points not redeemed etc.
Benefits of Credit Card:
You get reward points when you shop with a credit card. No interest is to be paid if the bills are paid within 50 days. Cash can be taken when needed.
Caution in choosing the credit limit
While applying for a credit card, care should be taken in choosing the credit card limit. The limit should be fixed keeping in mind your income, bill payment status and expenses.
