It’s a big step to go from a debit card to a credit card because having instant access to all that borrowed money might be appealing. However, when you apply for credit card, make sure to treat it like a debit card, using it mostly for significant purchases and making sure to pay off your balance in full every month, or you may find yourself in debt.
Use your credit card to its full potential.
Every credit card has its own set of benefits. The majority of the time, their users are uninterested in what they have to say. However, if you dig deep enough, you’ll most likely find ways to optimize your credit card spending and save more money. During COVID, for example, a card that rewards online buying, grocery shopping, and another daily spending would be highly advantageous.
Examine your credit card statement on a regular basis.
It’s critical to monitor your credit card statement on a frequent basis. Additionally, save your purchase receipts because they will help you keep track of your transactions. You risk missing your payment deadline or important information regarding changes to your credit card terms if you ignore your credit card statement. Every time you make a purchase, check your credit card statement.
Pay the yearly fee
While a card with no annual cost is desirable, the truth is that fee-based cards offer better benefits than their annual fee-free counterparts. So, before you dismiss a card due to its fee, make sure you understand what you’ll get in exchange.
Reward yourself.
Credit cards might let you earn incentives or cashback on purchases you’d make anyhow. Travel, hotel, airline, and cashback cards, to name a few, are among the many rewards cards available. The best credit card for you will be determined by the type of rewards you wish to receive, your lifestyle, and your spending habits.
If you choose a rewards or cash back credit card, keep the following in mind: Several studies, including ones published in the Journal of Research Marketing and the Journal of Experimental Psychology, have found that customers who pay with a credit card spend more than those who pay with cash. So, if you’re going to use a credit card to earn points, make sure you only use it to pay for things you’d buy anyway and are confident you’ll be able to pay off your loan.
Many reward cards also charge an annual fee. If you won’t earn enough points to cover the charge, you should probably choose a different sort of card.
Keep track of your reward points and use them to redeem them.
You may usually exchange your reward points for anything from the bank’s reward catalog if you have a credit card that offers you rewards. Make sure you’re putting them to good use.
Sign up Perks & Bonuses
There are a plethora of credit cards that provide substantial sign-up bonuses, allowing you to benefit in a variety of ways. You must compare all of the cards available from various issuers and select the one that best suits your needs. Cashbacks, complimentary hotel stays, and points redeemable for airline tickets are all common rewards.
Although it is true that possessing a credit card boosts your purchasing power, it is equally important to keep in mind that excessive spending and late payments can harm your credit score history. As a result, before deciding on the best one for you, understand all of the necessary terms and conditions and carefully haggle to get the best deal possible.