You dread going to the malls now. Apart from the insane traffic woes, a visit also tests your ability to abstain, financially, that is. Also, in the month gone by, you promised yourself that you will not use your credit card at the slightest itch.
We have some advice for you: Don’t procrastinate. Instead use your credit card, wisely.
Here we list some easy hacks for you to follow. (You can thank us later!)
- Use your card for Utility payments: If you have been using cash to make pay your utility bills in spite of having a credit card, stop now. Most credit card companies have between 5-25% cash-back schemes on spending like utility bills, movie ticket purchases and restaurant tabs. Many also tie up with retail chains for some cash-back arrangements. Keep a track of these deals.
- Go shopping, earn reward points: Reward points can fetch you a wide range of options, from a gift voucher to even a car! You also earn reward points when you make utility payments and your credit limit gets blocked to that extent. This means that there is less scope for impulsive spends. Before redeeming, browse through the reward catalogue on the bank’s website, and, plan accordingly.
- Pay on time: This is one of the most important hacks to follow if you don’t want to be staring at a huge debt later. Ideally, you should pay off your credit card balance in full every month, within the interest-free period. If needed, set up an ECS via your bank. If for some reason you can’t pay the entire outstanding amount, make sure that you pay more than the minimum amount in order to lower the interest.
- A problem of plenty: Whatever you do, do ensure that you don’t sign up for more than TWO credit cards, ever. Apart from the propensity to spend, having more cards means a higher risk exposure of loss or theft. Between the two cards, ensure that you have one credit card for emergency spending like a medical condition or sudden hospitalization.
- CIBIL’s the word: The three-digit CIBIL number has become a key factor to determine your credit worth. If you can keep your score in the 750-900 range, then you are home. But a few credit glitches, including defaults and missed payments, can bring down your score. Also, just because you have a high credit limit on your card, don’t go berserk. Try and keep your credit utilization low to keep your CIBIL score intact.
If, after reading the above tips, you still feel that a credit card is causing you more pain than pleasure, then it’s probably time to junk your card altogether. And to pay off the outstanding, you could always reach us at faircent.com. We will be happy to help you!