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How to make the most out of credit cards?

Credit cards, when used correctly and responsibly, are a convenient and secure way to make budgeting easier, help build credit, and earn rewards and benefits in purchases. They are also helpful in paying for expensive emergency situations such as a health emergency that is not covered by your insurance.

In this article, we are sharing a few ways to make the most out of your credit cards.

Choose wisely

Before signing up for a credit card, it is important to first identify the best one for you. Choose a credit card that would be most useful and relevant to your lifestyle and spending needs in terms of reward features and benefits.

Limit your spending

A common mistake made by new credit card owners is overspending and not being able to repay the credit, resulting in debt. Determine how much you can repay and keep your spending within that limit to avoid falling into debt.

Pay your bills on time

Not paying your credit card bills on time will result in being charged with an interest. An option to pay the minimum due is typically offered, but still results in needing to pay an interest. Best to pay your bills in full and on time to maintain your credit score and not fall into debt.

Make use of the interest-free period

If you are able to pay back your balance in full on time, you may be charged little to no interest. Many cards come with introductory periods where no interest is charged on purchases. You can take advantage of this period if you can pay off your balance on time each month.

Earn while you spend

You can earn for spending through your credit card by utilizing the cash-back or reward points. Your earned reward points can be used to redeem based on your bank’s reward catalogue.


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