A credit card can either be a step toward building a solid financial future and a high credit score, or it can lead to a mountain of debt that you will struggle to repay for years. One of the advantages of owning one is the easy conversion of your purchases into EMIs for easy repayments.
The Bajaj Finserv co-brand credit card allows one to avail of an emergency Personal Loan for an interest-free period of up to 90 days on their credit limit. You can apply for credit card online with the Bajaj Finserv app.
Here are 7 tips to consider if you have applied for an online credit card:
- Timely repayment of your bill on the due date
- Keep track of your expenditures
- Automate your bill payments
- Be mindful while spending your Credit Limit
- Redeem your reward points
- Use the offers and discounts
- Install the credit card app
Timely repayment of your bill on the due date
One should ensure they are repaying their due amounts in the stipulated time frame. One of the key benefits of owning a credit card can be the ability to repay the amount later, thus being very useful when it comes to emergency expenses. You are only required to make the minimum payment, which is a percentage of your outstanding balance, by your card issuer. While this might seem to be a more convenient and cost-effective option than paying the full sum due, it will cost you money in the long run.
Keep track of your expenditures
Make sure to periodically check your bills and the expenditures you are making with your credit card. Keeping track of your expenses can help in making sure you do not go beyond your credit limit.
Automate your bill payments
It takes a while to get used to paying a bill every month. By setting up automatic payments ahead of your due date, you can avoid late payment of your credit card bills. And make sure the scheduled payment is greater than the minimum – ideally, for the entire balance – if you have enough funds in your checking account before it is made.
Be mindful while spending your Credit Limit
Make sure you do not max your credit card. The automated rule one should keep in mind is not to use more than 30% of your credit limit. It may be tempting to charge up to your credit limit, but this is something you should avoid. The amount of credit you use, or how much of your credit limit you use, is the second most important factor in determining your credit score.
Redeem your Reward Points
Make sure you redeem your reward points before the expiration. Many credit card lenders offer reward points on certain transactions which seldom come with an expiry. Make sure to redeem those points to avail discounts on your transactions.
Use all the offers & discounts
Keep track of all the offers & discounts offered by your lender. In addition to cashback or travel incentives, several credit cards provide extra benefits. Make sure to use all of them. If you have any questions about the benefits of your credit card, go to your credit card app and check your agreement, or call customer service.
Install the credit card app
Download the credit card mobile app offered by the company to keep track of your payments. You can access your account at any time to check your balance, available credit, payment status, report a missing or stolen credit card, and more. Most of this may be accomplished via your phone’s browser, but applications are frequently designed to be quicker and easier to use on mobile devices.
Most credit card companies are invested in people who are prompt with their payments and hold a good credit score. You can ensure you maintain a good credit score by making timely payments of your due amounts. Although there are circumstances where closing a credit card makes sense, such as paying an annual fee on a card you don’t use or paying a high-interest rate, you should first understand how your credit score would be affected. Rest assured, when used sporadically and prudentially, a credit card can be an asset.