In this article "Credit Card Tips : Everyone Should Know" I will tell you about the best way to use credit card and what steps should use to make good credit score. Before studying the

tips lets know about credit card. Credit Card offers great flexibility of payment to their cardholders by providing them credit facility of pre- approved limit.

With credit card user pay to their merchants for goods and services based on their accrued debt. The issuer give a revolving account and a line of credit to their card users, to enable them to borrow money for payment and pay in cash to their merchant in advance. The cardholders can use the card to access cash in an emergency from domestic or international ATMs. A transaction fee would be levied on all such withdrawals and would be billed in next statement cycle.

Credit card is a favourable and beneficial tools to make purchases , but the credit card should be handled carefully. In this article (Credit Card Tips : Everyone Should Know) Credit card holders will get to know the important and worthwhile tips that will help them to use their credit card wisely. Plus if they use credit card reasonably ,they are building good credit score.

Tips to use credit card efficiently

1) Pay their dues strictly:

Cardholders have to make their credit card payments on time. Card users have to look their monthly statement bill at least try to pay the minimum amount due on time each month .On time payment will have the most positive vital impact on your credit record. But most of the time they should try to pay in full outstanding balance shows in their monthly statement.

Minimum Amount Due shall be 5% of outstanding amount or ₹250 ( whichever is greater ) plus all applicable taxes and EMI ( only in case of EMI based product).

Interest free credit varies for various credit cards issuer but generally it lies between period of 25- 50 days. And also the credit card users should deal with companies they know and trust. Pay attention to late payments , calls or letters from credit agencies, and denied or revoked credit.

2) Track your expenses:

Credit card also helps them to track on their expenses and helps them to spend wisely. Flippant purchases can lead to pile of debt .So they have to use credit card when ever it is required or in emergency situations. Use the credit card as a temporary loan , and then pay back the due amount as soon as possible to decrease or avoid interest charges.

3) Practice Credit utilization Ratio Law :

The credit card users has try to keep balance on their credit less than 30% of their total pre-approved credit limit . Maintaining a large number of cards can hurt their credit history. Do not use credit card such that outstanding is very close to total credit limit as this can adversely affect credit rating. Only use the credit you really need. If these large balances are carried over next month , the interest levied increases .

4) Manage credit card data securely:

The black magnetic strip contains important information about card and needs special handling. Do not keep credit card in an area where continuous magnetic field. Do not leave card on the top of television set or nearby electronic appliance. Keep card away from direct sunlight .

These precautions will help protect the important information stored on the magnetic strips an ensure that they do not face any problems while using their card. Also keep security details as security pin ,OTP ,CVV number and expiry date private and secure. Always swipe credit card only at trustable POS machines and ATMs .

5) Balance Alerts can help keep expenses at radar:

When they pay for everything in cash , it can not be easy to see how much they are spending .Tracking how much they put on a credit card it make simple , especially if they just getting started with credit by setting a certain level of balance to spend per month .

This is the best way to prevent overspending , of course to create budget and stick to it.

6) Continuously review credit card charges:

It is important to report unauthorized charges and payment as immediately as possible to stay away with overcharging. Make a routine to pay attention to credit card bill .

7) Don't afraid to use credit card:

Keeping a zero balance on credit card won't do any good. Credit card issuer want to see how they use credit so it is important to make purchases with credit card and spend meticulously.

Keeping it active prevent them from closing of their card.

8) Mid cycles payment to boost credit score:

The card issuer doesn't necessarily report account information after making monthly payment. It could be reported at any point of billing cycle. Depending on when that is, and how much it charge each month, the utilization that gets reflected in their credit scores could be high or low. One potential solution: Don't wait till due date to pay card bill. Make a habit of going online in the middle of the billing cycle and paying down the credit balance.

9) Report about lost or stolen credit card instantly:

Please call the credit card provider helpline number immediately and report the loss/ theft so that issuer can block credit card immediately. Report the loss to the police and collect a copy of the complaint / FIR .

Many card issuers offer zero fraud liability, which means they won’t have to pay for unauthorized charges if your card is ever lost or stolen and used without their permission. So be sure to report a loss as soon as possible.

10) Keep Earn Rewards:

Credit card that offers exciting new deals and benefits can work wonder on budgeting. They may receive about offers and reward point deals thorough emails scan them carefully for any credit card bonuses and rewards benefits. Credit card also connected with e commerce platform for exciting offers.

Conclusion:

I certainly think that using credit card are very useful as they can put their credit balance there and whenever they want and spend the money they can you it .As long as they not become addictive to overspending , it is one of the great payment tool if they use it by keeping mind the above 10 discussed tips .