Your choice of Credit Card depends on your spending and usage habits of these innovative financial instruments. Underutilisation of your cards, due to a lack of knowledge, will prevent you from leveraging them to their full potential. Knowledge is power. This brief guide offers smart, strategic ideas on how you can optimise spending on your card without running into debt.
Magic tips on Credit Card spending
To fully benefit from your Credit Cards, ensure you follow these six essential steps, unlocking various financial advantages and maximising perks.
For all big-ticket spends
There are several products and services you purchase every year of a higher value. These include insurance, petrol, travel, appliances, electronics, medicines, automobiles, and annual internet bills, among others. These purchases tend to be of a higher ticket size. Consider using your Credit Cards to make such purchases, as you can secure exclusive deals. You can also earn a larger number of reward points or cashback in one shot.
Prioritise stores that accept Credit Card
Today, a growing number of shops and e-commerce platforms allow you to pay using a Credit Card. So, instead of purchasing from a store that only accepts cash, Debit Cards, or internet banking, prioritise shopping on platforms or stores that offer a seamless Credit Card experience. Again, keep an eye out for exclusive deals and earn redeemable reward points on all purchases.
Leverage Credit Card EMIs
There are some purchases, which you will need to make on additional credit, as your monthly cash flows may not align with your card payment cycle. Instead of applying for a Personal Loan, consider leveraging the Credit Card EMI scheme.
Stores and e-commerce platforms offer this option at the point of sale, thus eliminating the effort and time you would otherwise invest in applying for a loan. Choose the tenure, EMI amount, and interest rate that suits you, get instant approvals, and make your purchase within minutes.
Increase your Credit Card limit
As your credit score increases, you will have opportunities to increase your Credit Card limits. By increasing your limit, you can make purchases of a larger ticket size and EMI purchases on your Credit Card. However, ensure that you increase it based on your real-time spending needs.
For instance, your ideal credit utilisation ratio — a percentage of the revolving credit used by you divided by the total credit available — must be around 30%.
Also Read: How you can increase your credit card limit ?
Utilise your rewards effectively
The rewards associated with Credit Cards, literally, amount to free money if used efficiently, and strategically. You can earn rewards on Credit Cards in the form of points, which can be redeemed for vouchers, or products and services on your service provider’s platforms.
Axis Bank offers a wide range of Credit Cards, including co-branded cards, which are suited for diverse needs. You can avail of rewards in the form of redeemable points, cashback, fuel waivers, and air miles, as well as exclusive deals, and airport lounge access.
Check the timeframe to redeem your points before they expire, and schedule redemptions, accordingly. Some Credit Cards come with cashback, which is instantly credited to your account. Cashback can be used to make direct purchases on any platform or store of your choice.
Keep building your credit score
Ensure that you maintain a high credit score of 750 and upwards so that you are eligible for better credit products. Follow these best practices to raise and maintain a high score:
- Pay your bills on time and avoid the late payment penalty. Monthly budgeting and tracking of expenses help achieve this goal.
- Ideally, automate payments from your Savings Accounts, so you never miss a payment. On the due date, the full amount is directly debited.
- Do not only pay the minimum due but the full amount. Otherwise, you will incur interest, which raises the cost of all your purchases.
In conclusion
Smart usage of Credit Cards allows you to upgrade your lifestyle at no extra cost, provided you optimise your spending habits and maintain your credit score. Apply seamlessly for an Axis Bank Credit Card via Internet or mobile banking. As you build your credit score, you will be eligible for superior credit products and rewards on Credit Cards. Spend wisely and earn more!
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
