I don’t think, anyone is here who haven’t heard about Credit card or don’t know what it is. Credit cards can be one of the popular and beneficial financial tools if used consciously. Your credit card is your first step towards credit score building and establishing a safe financial future but at the same time, it can result in huge loads of debt if used carelessly. Using a credit card is not only about knowing what a credit card is, you should also know how to use it wisely.

Here are some tips you can take into count to use your credit cards effectively.

Timely Bill payments

Unneeded to tell you the importance of a healthy credit score. While using credit cards or making a purchase using them, you have to take care of your monthly bill payments and have to pay those within the due date or billing cycle to avoid interest on monthly bills. Avoid spending more, that you can not pay timely. Untimely payments also affect your credit score.

Credit is for Needs not for Wants

You have to be clear with the use of credit cards. A credit card is for your needs not for luxuries. In the temptation of spending more don’t make any malignant purchases that can drive you to debt. Use these cards just to meet your needs, count credit cards as short-term loans and pay them back as soon as possible. The foremost thing you have to keep in mind is, always to keep your card balance less than 50% of the assigned credit limit. A high balance on a card negatively impacts the credit score. furthermore, if your high balance is carried forward it will cost you a penalty and increased rate of interest.

Set a Budget

It happens, a credit card is an opportune way to make purchases and one can get rewards as well by using this, so making overuse with it is normal. Yet you have to keep an eye on your spending and avoid buying things you can’t afford or can’t payback. Instead, you can plan a budget like the 50-30-20 method, which says 50% of your income should be spent on essentials, 30 % on the items you wish to buy but not necessarily you have to have and 20% is on savings. This will help in credit card purchases and monthly income in alliance with each other.

Check your statements carefully

The dominant thing to take into account while doing any financial activities is that you have to be aware of the actions taken by you and transactions made. Make sure to track your spending and keep an eye on suspicious transactions.

Keep your credit card details secured

With the enhancement of data and digital media, scammers and hackers have also enhanced their practices and found new ways of theft credit card users. To counter it, you have to be literate enough and make yourself aware of such frauds. Keep your CV, OTP, and security pins secure. Only swipe cards at authentic worthy sources.

Take time to understand rewards

Try to use cards that offer reward points. Many high-end cards come with exciting cashback offers, gift vouchers, and reward points that you can redeem, many come with instant discounts as well. If you are a regular credit card user then it is okay to use a rewarding card to save on your purchase.