Getting your first credit card is like a big step in your financially independent life. With so many issuers offering a credit card online, the process has also become much easier. When you use your credit card wisely, not only can you earn attractive rewards on every spend, but you can also build your credit history. The latter comes in handy when you need to apply for a loan for your financial goals. However, the caveat remains – use the card wisely. How can you do this?
You don’t have to scratch your head. Here are some smart and effective ways to use your card the right way:
Get the “right” card for you
There are different types of credit cards available in the market: lifestyle cards, shopping cards, travel cards, premium cards, etc. Choose a card based on your spending habits. This is essential because the reward structure depends on the card you use. For example, if you are looking for exclusive access to airport lounges, SPA and a low margin of exchange, the ideal card would be IDFC FIRST Wealth Credit Card. However, if you drive to work every day in your car, maybe IDFC FIRST classic credit card would suit you best as the card offers a 1% fuel surcharge waiver.
Tip: Assess your spending habits, then choose a card that can give you the most rewards for every spend. Reward points can be redeemed for additional benefits and discounts.
Understanding the Reward Structure
To unlock reward potential, understand your card’s reward structure. Learn about welcome benefits, expense-based income, earning and redeeming rewards points, bonuses, and more. Thereafter, be sure to use the maximum rewards your card has to offer for value-added benefits. With a IDFC FIRST bank credit card, you get 10x reward points that do not expire and can be redeemed at any time. Also, there is no cap on the number of reward points you can earn while you have no redemption fees.
Point: Make sure you maximize the rewards savings structure by making timely payments and redeeming points on time.
Understand the fee structure
Nothing like a free meal. Although IDFC FIRST Bank’s credit card wallet has no membership fees and no annual fees, it is imperative to understand fees, especially late payments and interest charges. For example, the foreign exchange margin for international transactions is 1.99% in IDFC FIRST Select Credit Card, while in a IDFC FIRST Millennia credit card, the forex margin is 3.5%. Additionally, you should be aware of late payment fees, interest rates, cash advance fees, etc.
Point: Choose a card with low fees and avoid paid transactions.
Be a fan of bill payments
Credit card bills are payable within a specified time. Make sure you pay the full bill every time. By making full payments, you get a good credit rating and avoid high interest charges and late payment fines.
Avoid withdrawing cash (unless you have to)
Credit cards allow you to withdraw money from ATMs. However, use it sparingly as cash withdrawals incur fees and the money withdrawn also attracts interest. In fact, even though Bank credit cards IDFC FIRST allows you to withdraw money from ATMs at 0% interest, it is advisable to use it only in emergencies.
Use these tips and use your credit card wisely. You would be able to earn attractive reward points and increase your credit score, one month at a time.
Follow the link: Apply Credit Cards Online for Instant Approval | IDFC FIRST Bank