9 Credit Cards Lessons to Follow for Maximum Benefit

Credit Cards Lessons

Credit cards are extremely easy to get these days and depending on how you are, it can either be your friend or your foe. If you’ve let it become your foe, you can be certain that things can get really ugly for you. But, if you use it right, there’s nothing like it. In this page, we will give you top credit cards lessons on how to use your credit card for maximum benefit:

Always, Always Clear your Outstanding Balance

The best credit cards lesson we can teach you is to always clear your credit card outstanding balance as early as possible. In case you have a larger amount to repay, make sure to do so in as little months as you can. Also, never fall into the trap where banks set up for a minimum amount auto-debit option for you. As soon as you fall for this trick, you will end up losing control over your finances as it could bring a sense of callousness while you wouldn’t have cleared much of your balance.

Make Sure to Use Your Credit Wisely

Having a credit card gives you great power, and with it comes great responsibility. So, choose to be Peter Parker, not Otto Octopus. Don’t abuse the power you have, take good care of it. Let’s say you have a credit limit of Rs.80,000 on your card. Make sure to keep it well below the limit – if you keep it as low as 40% that would be great. Why should you do this? Because if you use up all the Rs.80,000, you may not be able to use it again until you clear off the entire chunk.

Use your Reward Points without Fail

What good is a gift if you haven’t even unwrapped to check what’s inside? A credit card is just the same. It’s practically a gift that keeps on giving – in the form of reward points. How you utilise it is entirely up to you. Let’s say you use a vehicle to commute on a daily basis and use your credit card to fuel up your vehicle. As long as you have a good fuel card, you can get a few litres or even a full tank of fuel once in a while for free, thanks to your reward points. So, make the necessary adjustments to get a card that is in line with your lifestyle.

Don’t Swipe Because you Can

As mentioned earlier, a credit card gives you great power. Don’t try to be a supervillain in your own life and mess everything up by swiping excessively. Think with a level head, use your card only when you feel there’s a benefit coming your way. Strategies the way you use the card. And never be the type to make impulse purchases. Even if you are, try to keep it to one in two months or something along those lines so that it doesn’t pinch your pocket too much.

Find the Card that Suits you Best

Do you love to travel? Or do you enjoy fancy dinners and hot parties? There’s a card for you, no matter what type of lifestyle you are living. Browse through a variety of options. A simple search on google for a particular kind of card can give you multiple options from various banks. Take a look at each and every one of them and go with the one that you feel best suits you and the lifestyle you have.

Keep an Eye on your Credit Score

Just because you got a credit card doesn’t mean everything’s fine and dandy. Maybe the bank thought your credit score was a little iffy but decided to give you the chance. Try to repay their promise, not for their sake, but for yours. If you mess it up, they won’t be the one paying for it, you will be, for the next few years. So, keep your ideas of shopping sprees and big spending aside, and think about how it could affect your credit score before making a purchase. Also, ask yourself if a particular thing you are buying is absolutely necessary. If your credit score is not good, well you can try services offered by credit repair organisations.

Never Cancel a Credit Card without Using Reward Points

What good was having a credit card if you cancelled it without making use of the reward points? It’s like going to college for years, but not wanting to accept the degree certificate. Rather than cutting your card up at the sight of peril, make sure to check if you have any points left and utilise them before closing the card account.

Be Aware of what your Card Comes with

A credit card doesn’t just give you an instant loan, there are several other features attached to it. For instance, your card may come with luggage insurance or offer lounge access at some of the leading airports in the world. You will only know about them if you take your time to check the benefits and the overall features the card comes with. So, take a look at all the features on your card and the goodies it comes with before you rip through the package.

You may like to Read: Personal Finance Tips for College Students

Avoid Cash Advances at All Cost

Heard of cash advances? They are so easily available to you. Just went to an ATM to check you balance? There’s a cash advance beckoning for you. We admit the lure can be hard to resist at times, but know this one point: Why pay a lot more than what you borrowed when you have other options? You can simply borrow from a friend or use digital wallets to do the deed.

Final Word!

All in all, if you keep these credit cards lessons in mind and use your credit card the right way, you will realise how good a friend it can be and how well you both will get along.


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