With growing awareness about the importance of financial planning, more individuals are now adopting credit cards to manage their daily expenses. Credit cards, although debt-based financial products, are among those financial instruments which can help an individual increase their purchasing power and avoid accumulating debt with proper debt management techniques.
Worth mentioning, these tools are often considered as debt-creating tools as well. Yet, if individuals have been second-guessing their decision to avail a credit card, they may proceed to learn how to get a credit card at the earliest.
Further, to understand the role credit cards play to help manage expenses, individuals should make it a point to understand the significance of the credit card statement. Additionally, they need to equip themselves with different ways to use their card wisely.
Credit card role in managing expenses
The following pointers offer a fair idea of how to manage daily expenses better with your credit card.
- Use the credit card limit to create a budget
Being the upper-limit up to which one can spend through their cards, cardholders can use their credit limit to build a sound budget. It would help individuals to understand how much they can actually spend through their card and manage it accordingly.
- Track your unused credit limit
Further, keeping a close tab on the remaining credit limit can help gauge the available purchasing power. In turn, it helps prioritise expenses effectively, thus regulating unnecessary expenses successfully. Regardless, cardholders may look for ways to increase their credit card limit to make higher spending that are essential.
- Identify unnecessary expenses
Credit card statements tend to play a vital role when it comes to identifying unnecessary expenses or becoming familiar with one’s spending habits. Hence, cardholders should use it to their advantage and try managing those areas they are prone to spend superfluously. However, the key to achieving it successfully is by learning how to read one’s credit card statement correctly.
- Reward points summary
Further, the reward points accumulated through credit card transactions enable cardholders to make their future purchases conveniently affordable. By redeeming such points, card users can avail attractive discounts and coupons on their everyday purchases or on achieving milestones. Subsequently, they would be able to lower their expenses significantly. Therefore, keep details pertaining to the redeeming process handy to facilitate it better.
- Simplify the payment process
Other than these, the grace period and payment due date of a credit card’s billing cycle also comes in handy to manage finances better. For instance, it enables individuals to streamline their credit card bill payment accordingly to avoid accumulating interest.
Further, you can look for credit cards like the Bajaj Finserv RBL Bank SuperCard that extend EMI repayment options when goods and services are purchased through partnered outlets.
Additionally, you may choose financial institutions like Bajaj Finserv who provide attractive pre-approved offers on their financial products that facilitate better financial planning. Such offers are extended for products like credit cards, personal loans, business loans, home loans, etc. You can check your pre-approved offer by providing simple details like name and contact number.
Subsequently, find out how to get a credit card and its eligibility criteria to jump-start the process effectively. Also, make it a point to avail the essential tips which would prove efficient in using the card wisely.
Tips to use a credit card wisely
- Repay credit card bills on time – Doing so, will not only prevent interest build up but would also help minimise the risk of defaults. In turn, it would help create a better credit history.
- Pick a card based on spending habits – Most leading financial institutions extend attractive offers and discounts on everyday expenses. Therefore, look for a credit card that matches your spending pattern and make your daily costs more affordable.
- Track your credit card reports frequently – Further, card users should develop the habit of tracking their credit card statement often. This would help them keep a better track of their expenses and help eliminate the occurrence of transactional errors.
- Redeem reward points wisely – Cardholders should be aware of the reward point expiry date to be able to use them effectively. Further, they should keep an eye out for transaction and purchase offers which can help earn accelerated reward points.
Lastly, by tracking one’s credit card statement carefully and also by using the credit card wisely, cardholders would be able to manage their daily expenses effectively. Subsequently, by learning how to get a credit card, individuals would be one step closer to using the card for optimal financial management.