Experts say that if you use the credit card incorrectly, you may have to pay interest in the form of a large amount. But if the credit card is used wisely, then there are many benefits.
If you have a high-earning credit card, take your rewards to the next level with these strategies to maximize the power of your cards. The use of credit cards has increased a lot today. Some people use it smartly by staying in discipline. Many people use it carelessly. Experts say that if you use the credit card incorrectly, then you may have to pay interest in the form of a large amount. But if the credit card is used wisely, then there are many benefits.
Utility bills are deposited on time
You make recurring payments every month like your phone, electricity or gas bill. To get this bill deposited on time, you can set your credit card for payment automatically. This eliminates the problem of forgetting your bill payment and you do not have to pay any penalty.
Credit is available without interest
Credit cards come with a grace period between purchase and payment. It can be up to 50 days. The bank does not charge you any interest for this 50 days. With this you can buy big stuff and the bank has to pay you the bill within 50 days. Keep in mind, if you miss it, it will cost you dearly.
Can redeem rewards
Whenever you make a payment with a credit card, you get rewards. You can redeem them with various offers. This saves you some money.
Can track the expenses of every month
Credit card statement is a great way to track your expenses every month as it gives you every item of your spending details.
Credit score can increase Credit score can increase
Most people are not aware of this, but a credit card can increase your credit score. Institutions like CIBIL give credit score to people, which depends on how active you are with their payment. If you pay the credit card bills on time, then it increases your credit score. A good credit score means that you will be able to take both loans and credit cards easily in future.
Extra benefits are also available Extra benefits are also available
Credit cards also have some extra benefits. Suppose you have an HDFC Bank credit card, you can get accidental death cover and fire and theft protection on the items you buy. In this case, you will get insurance cover without any premium. You only have to spend some minimum.