11 Ways to Make Best Use of Credit Cards

Posted In Tutorials - By NitiN Kumar Jain On Monday, July 7th, 2008 With 2 Comments

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I always wanted to tell the credit card owners about the best usage of their cards. If you hold credit cards then this is a must read otherwise also you should read this article, because there is no time left that real money usage goes out completely and we have only  virtual plastic money to spend.

11 best tips of using plastic money:

  1. You should first choose the credit card that is FREE for life. By my personal experience, you should always go for the life time free credit card even if it is a silver card or its limit is less. I am telling you this because as you got to become loyal customer of the bank by making good use of the card and by always paying all your dues on time then the bank will itself upgrade your card every now and then. You should not be attracted to platinum or titanium cards as you might think you have more benefits in them even though you are charged for it. Keep it in mind that, banks are here to earn and only we can assure that we make good use of their cards and don’t pay a single extra penny to them.
  2. Always keep at least 2 cards with yourself so that you can best utilize the interest free period.
  3. Try to keep Different Billing Cycles for your credit cards.
  4. You should Remember the statement generation date of your credit cards, if it is difficult for you to remember them then write them down on a piece of paper and always keep them in your credit card wallet. This becomes handy to make use of maximum credit days. E.g.: If you have 2 credit cards, CC1 has the statement generation date of 5th day of every month and CC2 has it for 20th of every month. So when you are shopping on 10th day then you should use CC1 as this transaction will appear in statement on 5th of next month and then you would at least have 20 days to make the payment i.e. effectively you get 45 days of interest free credit.
  5. Always keep yourself updated with the offers / cash back on your credit cards by checking the website of the banks on regular basis. Try to use that credit card which is saving you something in some deal.  E.g.: If CC1 is offering you 5% cash back while booking train tickets online then you should always use CC1.
  6. Always make payments on time to avoid any late payment charges.
  7. Never hesitate to talk to customer care if your credit card has been levied with some late payment or any other finance charges. If you do not get positive response from the customer care center then you must write a mail to nodal / grievance redressal officer of the bank requesting him to reverse it. If your records are good then you might get lucky.
  8. Withdrawing cash money from your credit cards might not be a good idea unless very urgent. The charges are very heavy on this. Better, go for cash on call or short term personal loan with the bank on the basis of your credit cards. You might get a very good deal.
  9. Never ever hand over your credit card to anyone. Keep checking your credit card transaction details over the net or phone every alternate day. If you notice any fraud transaction, inform the bank immediately. You might have got some liability on your card insured in case of any fraud. Check credit card booklet that you had received with the credit card or ask the bank for the same.
  10. Never ever give your credit card impression to any other bank executive unless identity of the person is foolproof.
  11. When shopping online, always check if you are on the secured server or not. It is recommended not to use credit card over the unsecured servers. (Check it by noticing the address bar if the website is on https)

Happy shopping!!


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