If you want to make best use of your credit card then the
tips we will be sharing in the following sections will definitely help you. So,
let us find out what all you need to do and not to do while using a credit card
in this Indian Money review.
Tips on How to
Properly Use a Credit Card
Tip #1: Select the
Right Card
During Indian Money Review it was noticed
that the best card is one which matches your spending needs. Additionally, you
need to choose one that offers maximum benefits. For instance, if you travel
frequently then a credit card that offers features like lounge access, hotel
vouchers or air miles will be right option for you.
Tip #2: Monitor Your
Spends
As per IndianMoney.com, You should only
spend up to that limit which you will be able to repay. If you don’t then it is
likely that you will fall into the dreaded debt trap.
You will be struggling with your repayments after
overspending and as such, it will be important to avoid this type of thing from
happening.
Tip #3: Don’t Make
Minimum Payments
Paying minimum balance due is never the right thing to do
since it will attract interest at a high rate and increase the debt burden you
are bearing.
Tip #4: Credit
Utilization Ratio
According to Indian
Money review, you need to make sure that the credit utilization ratio
remains under 40%. This ratio refers to ratio between total credit limit used
compared to your available credit limit.
If you break this level then it will have a negative impact
over your credit score and reduce it. In such situation, your chances of
getting a loan will also get affected.
Tip #5: Limit Number
of Cards
As per C S Sudheer Indian Money,
you should ideally have not more than 3 cards. If there are more cards then you
will feel like spending more and you will be left money to invest and save.
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