Using a credit card to manage your finances is common for several reasons, one of which is that it helps you save more. While it is a very convenient option, understanding how to use it wisely is key to maximising its advantages. 

Here are a few practical tips you can try.

Pay Full Balance Every Month

The most common mistake people make when using a credit card is to settle their bill with just the minimum payment. This has a dual disadvantage: it adds to your debt, and you must pay interest on your unpaid amount. That’s why the simple practice of paying your entire card bill is a smart way to use your card for everyday expenses. 

Use It Only in Emergencies 

Using your card for frivolous expenses can put you in great peril, as there are many fees and charges involved. Therefore, it is best to use it as a short-term loan that you can pay back quickly to avoid the high cost of borrowing. 

Utilise Reward Points And Offers

Another smart way to use your card is to optimise your reward points and seasonal offers. This helps you save more on expenses across all categories and increases your purchasing power. To make the best use of these, keep an eye on the offers on the credit card company’s website or mobile app.

Keep Utilisation Ratio Low

Utilising your card up to 30% of its limit is the key to maintaining your credit health. Using the card for all your payments may be a convenient option, but it also shows too much reliance on it. The best way to go about this is to plan what you will use it for beforehand. For instance, you can swipe it for emergencies, groceries, utilities and electronics purchases only. This way, you can spend carefully and also be able to pay your bills on time. 

Check Statement Regularly

Whether you generate your statements online or see them on your email or mobile app, it is important to do so every month. On the statement, you will find your card details, transaction history, reward points, paid and unpaid amounts, interest charged, etc. With this information, you can verify your transactions and other charges. It will also help you to curb your spending if you are going overboard. 

Avoid Cash Withdrawal 

Based on the credit card company’s policies and fee structure, the facility to withdraw cash may not be a smart way to use your card. This is because most issuers levy heavy transaction fees for each withdrawal. Therefore, it is best that you keep this option for emergencies only and think of all the high costs involved before utilising it.  

Knowing this, you can easily control your dues by paying them on time and not worry about going overboard with spending. In addition to this, choosing the right card is an important aspect of maximising benefits.

One option you can choose is One Credit Card, India's first metal card that offers attractive rewards points among a range of other perks. It is a lifetime-free card that gives up to 5X reward points, has many exclusive offers, facilitates no-cost EMI on big bills, and more.  Apply online to enjoy all these lucrative benefits.