A Credit Card is a convenient way to handle a financial crunch. It comes in handy when you are in immediate need of money, but short of liquid cash. Given the emphasis on contactless payments post-pandemic, the RBI has raised the maximum limit for transactions on contactless cards to Rs 5,000 from the Rs 2000 earlier. This makes using Credit Cards all the more attractive.
Here are some tips that can work in your favour while using a Credit Card.
1. Keep an eye on your spending
You can get caught in a debt trap if you do not pay attention to your spending. It is important to keep track of your Credit Card expenditure. Maintain a handwritten diary or list of expenses incurred whenever you use your card for any transaction. If done rigorously, this will help prevent the tendency to splurge. You can now set up transaction limits for specific types of purchases on your Credit Card- sticking to your spending goals just got easier.
2. Set an ideal credit limit
Did you know you can adjust your card’s credit limit? Request your credit provider to set a limit that allows you to settle payments easily before the due date. A credit limit that is too high could tempt you to overspend, while one that is too low can hamper important big-ticket transactions. Setting the appropriate credit limit is important; failing to pay your Credit Card bills on time can affect your credit score adversely.
3. Check Credit Card statements regularly
Keep a close check on your Credit Card statements. It is a good habit to tally the statement billed to you against the payment receipts you received at check-out/point of sale. This will help you to manage and prioritise your finances. It will also help in detecting and avoiding any charges that might have earlier missed your sight. Sometimes, the merchant name may appear differently on your Credit Card statement so going through each transaction individually is critical.
4. Use free offers and rewards
Credit Card companies offer rewards and incentives from time to time. This can be in the form of cashback or free vouchers. Check with your bank for the latest offers. There are some standard Credit Card benefits that not many are aware of. For example, you can avail complimentary insurance on most Indian Credit Cards against accidental death or permanent disability. Moreover, you can also use your Reward Points to buy stuff you need. Choose from a range of Credit Cards from HDFC Bank that offer numerous services and benefits as per your needs.
5. Pay Credit Card bills on time
You must pay your bills on time, every month. Though it seems obvious, many people tend to ignore it. Non-payment of Credit Card bills attracts unwarranted interest rates, finance charges and late fees which can badly upset your budget. If you are not regular in your payments, it could also hamper your credit score, which could become a problem if you want to apply for a loan later.
Here’s how you can keep your Credit Card bills in check
6. Avail of easy loans
Did you know your Credit Card transactions can help you get a quick loan? Yes, a Credit Card provides you with the facility of getting an unsecured loan on your Credit Card limit. This facility largely depends on your spending, transaction patterns, and payment history. With HDFC Bank Credit Cards, you can avail a loan with EasyEMI and get money credited to your account immediately. More importantly, you don’t require any documentation for it and the repayment tenure is flexible, making it easier to manage your loan.
7. Opt for Contactless Credit Cards
In the current pandemic situation, minimising contact is the most effective way of protecting oneself from getting infected. At such a time, HDFC Bank Contactless Credit Card seems like a boon. Now instead of swiping your card and entering the PIN, just tap the Contactless Credit Card over the POS (point of sale) device to complete the payment in seconds. This enables faster checkout at the billing counters.
To sum up
A Credit Card offers significant benefits over Debit Cards thanks to its Reward Points and the convenience of doing transactions even in times of a financial crunch. With careful usage, it can be a loyal ally in your day-to-day transactions – and of course during emergencies.
Click here to apply for your very own HDFC Bank Credit Card now!
*Terms and conditions apply. Credit Card approvals at the sole discretion of HDFC Bank limited. Credit Card approvals is subject to documentation and verification as per Banks requirement.
