To understand the meaning of credit card, let us divide it into two parts. Credit + Card = Credit means borrowing, and through card we use the borrowed amount. In other words, if we understand it, the bank provides us a fixed amount which we can use only through credit card or net banking.
Credit Card Benefit: Just as you can easily shop anywhere with a credit card, on the other hand it also helps in saving. If you also use credit card, then today we will tell you how you can save maximum with credit card. Along with this, how does it help in controlling your expenses ?
Many people find credit cards to be a source of fuel to their expenses. Although this is not completely true. If you spend within the limit and use the features available on the credit card properly, then it also helps you in saving maximum. You can easily do shopping or bill payment anywhere through credit card.
While using a credit card, you should know about its features along with its advantages and disadvantages. Today we will tell you about those 10 features of credit card with the help of which you can easily save along with your shopping.
7 credit card features you may not know about explained
Pay bills on time Whenever we make any purchase through credit card, we do not need to pay cash immediately for it. Because of this, many people like to spend through credit cards and spend indiscriminately. Credit card bill comes after the payment made by credit card.
You should pay your credit card bill on time. If you do not do this, it can spoil your credit score. Apart from this, if you pay your credit card bill late, you may also have to pay many penalties like late fees.
Choose the right credit card : If you are going to take a credit card then you should select your credit card on the basis of many parameters. You should compare the benefits like cashback, rewards, discounts etc. available on the credit card.
Many banks and financial institutions offer special discounts on expenses like grocery, movies etc. You should select the credit card keeping in mind your expenses and the benefits available on the credit card.
Avoid balance transfer : We can transfer balance from one credit card to another. This type of facility is available on many credit cards. In such a situation, you must check how much charge or interest is being charged on the balance you are transferring.
Take advantage of rewards : Reward benefits are available on many credit cards during the festive season. Apart from this, whenever you do any shopping, you also get this type of benefit. You should try to take maximum advantage of these types of rewards.
Select EMI option : If you are not able to pay the credit card bill on time then you should select the EMI option. In this you will have to pay the minimum credit card bill. You can pay the remaining bill with EMI. You need to pay attention to the interest rate while choosing an EMI.
check credit score : You should check your credit score from time to time. If your credit score gets damaged, you can fix it. If you have a bad credit score, you may face difficulty in getting a loan in future. Apart from this, you can also get the facility of additional features and rewards on credit score
Use promotional offers : Many types of offers keep coming on credit cards. Even when we shop online, we see many offers. In such a situation, we should try to use such offers as much as possible. This gives us the benefit of additional discounts.
Annual Fee and Interest Rate You should know how much annual fee is being charged on your credit card and what is the interest rate on the EMI taken for the credit card bill. Let us tell you that if you pay your credit card bill on time, you get benefits like lower interest rate and reduction in annual fees.
Avoid cash advance Many people use credit cards to withdraw cash. This process is called Cash Advance. We should try not to advance cash and withdraw cash from ATM only. The reason for this is that we may have to pay higher charges and interest on withdrawing cash from credit card.