What are the advantages of using a credit card?

1. Take advantage of interest-free days Credit cards typically come with an interest-free period on purchases (for example, up to 55 days). This means that if you have one of these cards, you wouldn’t have to pay interest on purchases if you pay back your closing balance in full within this period.

What’s the best way to use a credit card?

Plan your purchases and use your card only for planned purchases. Avoid impulse buys on your credit card. Always try to pay your credit card bills in full each month to avoid the interest charges.

When to use a reward based credit card?

They are particularly good for making large purchases that would otherwise be tough given the timing of your pay cheques. If you have a reward based credit card then you should use them as much as you can while still being able to comfortably pay off the balance each month.

How can I use my credit card to my advantage?

Most credit cards offer powerful tools on their websites to track your spending — use them to your advantage. Use your credit card as a compliment to your budget. If you’re disciplined enough, you can use a credit card as a compliment to your budget.

Balance transfer credit cards allow you to move existing high-interest debts to a new account with a low or 0% promotional interest rate. This can save you money on interest charges and help you pay down debt faster. Credit cards offer flexibility. Credit cards allow the customer to avoid having to carry large amounts of cash around.

What can I use my credit card for?

If you have multiple credit cards, you can use them judiciously as per the benefits available on your credit card. Travel and fuel cards can be used for booking flight tickets, stay in hotel and fuel purchases. Cashback and reward cards can be used for buying groceries and miscellaneous shopping.

What are the benefits of a travel rewards credit card?

Anyone who travels regularly — or would simply like to do so — can likely benefit from a good travel rewards credit card. These cards allow you to earn points or miles on every purchase that can be redeemed toward things like free flights and hotel stays.

How to use your credit card for maximum benefits?

Consider using only 30% of your credit card limit. This will show the banks and credit bureaus that you are not credit hungry. This will help maintain/improve your good credit score. Late Payment Fee: If you fail to pay off even the minimum amount due by the due date then you will be liable to pay the late payment charges.

What are the benefits of a charge card?

The major benefit of a charge card is that it has no predefined limits like in credit cards. The usage pattern, credit history and financial capacity of the user decide the usage limit. One usually needs to have a good credit score to qualify for a charge card.

What can I Use my Rewards credit card for?

Many reward credit cards provide bonus points for certain categories of spending like restaurants, groceries or gasoline. When certain earnings thresholds are reached, points can be redeemed for travel, gift cards from retailers and restaurants, or for merchandise items through the credit card company’s online rewards portal.

What are the benefits of a flexible credit card?

Flexible credit Credit cards come with an interest-free period, which is a period of time during which your outstanding credit is not charged interest. Ranging between 45-60 days, you can avail free, short-term credit if you pay off the entire balance due by your credit card bill payment date.