Credit cards have become an integral part of our financial landscape, offering convenience and flexibility. However, maximising the benefits of your credit card requires strategic planning and responsible usage.
It is essential to familiarise yourself with the features and perks of your credit card. Different cards offer various benefits such as cashback, rewards points, or travel miles. Knowing the specific advantages your card provides will help you tailor your spending to maximise these rewards.
Here are some simple yet effective tips to help you optimise your credit card spending.
Creating a budget is a fundamental step in optimising your credit card usage. Determine your monthly spending limits for different categories such as groceries, dining, and entertainment. This ensures you stay within your financial means and prevents unnecessary debt accumulation.
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These days credit cards come with rewards programs that offer cashback, discounts, or loyalty points. Strategically use your credit card for purchases in categories where you can earn the most rewards. Whether it’s earning cashback on grocery shopping or accumulating points for your next vacation, leveraging rewards programs enhances the value of your credit card.
One of the most effective ways to optimize your credit card spending is to pay your balance in full each month. Adhil Shetty, CEO, Bankbazaar.com, says, “By paying full amount of your credit card bill, you avoid accumulating interest charges and late fees, ultimately saving money. Set up automatic payments to ensure you never miss a due date, maintaining a positive credit history.”
Credit utilisation, or the ratio of your
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