5 Good Credit Card Habits

Credit cards can be a great tool on your financial journey if you use them well. It’s not just a rewarding payment tool but can also be the gateway to building a line of credit. Here are a few habits you can follow to ensure your credit cards work for you, not against you.

Know the rules

Credit cards give you interest-free credit (generally up to 45 days). It means that you can use the money you don’t have at hand yet and pay it off later. This helps you maintain adequate cash flow while cutting off your waiting period for things you want immediately.

But, it’s important that you pay it off before your billing cycle closes or you may end up accumulating charges like late payment fees, interest charges, etc. Credit cards are a great tool for short-term expenses but one should avoid incurring large amounts of debt that can take a long time to pay off. And even if you find yourself in such a situation, you have the option to convert the balance or a certain expense into EMIs.

Did you know that OneCard’s easy EMIs comes with zero documentation and offer a flexible tenure?

Avoid unnecessary charges

Late payments can spin out of control and before you know you may be dealing with a huge debt. Being aware of all the fees you could face helps avoid such costs.

And if you are facing a cash crunch, at least pay the minimum amount due. This will help avoid late payment fees while the remaining amount will still attract interest fees.

Keep it simple, silly!

Did you know that responsible use of credit cards also adds to your creditworthiness? Your payment history makes up 35% of your credit score, which banks and other lenders use to approve loans. A high credit score can make you eligible for lower interest rates and favourable repayment terms.

Credit cards can be an instrumental tool for your financial success but they can also become a liability if not used responsibly.

Here’s how to ensure a healthy credit score while keeping it simple:

• Spend only what you can afford

• Pay bills on time and pay off the balance every month.

• Make the best of your rewards

To regularly monitor and grow your credit score, you can also check out OneScore. It’s a free credit management app which is also free of spam.

ALSO READ:- Best way to use your credit card

Time your purchases

Now, here’s a small hack on an end note. If you know what plan on buying in the next credit card cycle, make your purchase right after your Credit Card bill is generated. So you can enjoy a longer credit cycle.

Check out Ongoing Offers

Keep an eye out for ongoing partner offers on your credit card. Using the offers can help you save money through attractive discounts and cashback. You can also earn money through referral offers if any. Some credit card providers also have signup bonuses or extra rewards for reaching spending milestones within a certain timeframe.