Festivals are round the corner and tempting discounts and offers have already started raining. E-commerce companies leaving no stone unturned with their latest offers. No doubt there is a huge competition among peers which will be quite interesting to see who makes the best out of it.
New credit card holders are the one who can fall for the trap easily. As they will only realise when they have to make payments.
Here are some smart ways to use credit card this festive season:
Understanding your credit card
Understanding your credit card limits and its reward will help spend accordingly. There is variety of credit card available with banks and institutions. Some banks have tied up other institution through which offer discounts and followed by cash back or reward points.
One has to go through the brochure of your credit card and terms and condition to get a better insight on the card.
If planned properly reward points cab fetch you better offers. Do visit the bank website where there will be information on redeeming reward points. Some banks issue vouchers to redeem at certain lifestyle center with whom they have tied up. Make sure you understand how it works. Some offers are for life time and some are for a limited period.
This is where most of the newbie get stuck as they find numerous options to make payments such as partial payments, paying only minimum amount etc.
By doing this, it will only add up to your next bill along with interest and other fees, so this these options are not a good idea to make payments.
It is always suggested to pay your bills within a grace period of the card.
Credit card holders are easy prey for E-Commerce industries as they don't have to think of cash at the time of buying. New credit card holders should avoid impulsive buying. Make a list of items you need and check for the best offers. By making regular payments it will help you build a good credit history.
Mistake To Avoid
Avoid using cash advances option on your credit card which will only pile your cash flow problems. Ignoring your monthly statement where you can tab on your spending habits and control the same. Buying things you don't need just because offer looks interesting. These small habits will make you fall in debt trap unknowingly.
Pay Bills Using Credit Card
Most of the credit card holders use a credit card for only shopping purpose, such individuals should use the card for making bill payments and earn points and cash back on the same.