7 Smart Ways to Use Credit Card for Maximum Benefits

Are you looking to apply for a credit card online and start using it immediately? Just take a breath. While you can get rewarded on most transactions when using a card, think about your personal habits and needs before you go ahead. This will help you use your card to your advantage and save more.

7 Ways to Boost Your Benefits

Here’s how you can be smart when choosing and using your credit card:

Opt for the Right Card

Before you apply for a credit card online or offline, carefully analyse your spending habits and lifestyle.

If you frequently travel, consider a travel card as it offers miles or points for flights and hotel stays
A cashback card is suitable for everyday spending as it provides instant cashback when you make purchases related to groceries, dining and movie tickets and more

Make Payments on Time

To avoid late fees and interest, ensure that you pay your bills by the due date. What’s more, by clearing your total due, your credit limit is replenished. This helps you use the full limit in the next month.

Use Your Limit Carefully

Tracking your credit card spending is vital to avoid falling into a debt trap. Keep a record of your expenses. Consider setting up limits for different spending categories, so you can stay within your budget. Use a credit card app to always be in the know and get notified when you near these limits.

Understand Credit Scores

Using a credit card affects your credit score. So, ensure that you use your card in a way that you can maintain or boost it. Here are two ways of doing this:

Never miss your bill payment
Ensure you do not utilise more than 35% of your credit limit

Both these factors will help you build a positive credit profile.

Look for Limited-Time Offers and Complimentary Insurance Covers

Credit card companies periodically offer cashback, discounts and vouchers. Check these regularly so you don’t miss them. Many credit cards also provide complimentary insurance for:

Accidental death
Permanent disability or accidents
Loss of baggage
Late flights

Make sure you are aware of these covers, so you can utilise them when needed.

Pay attention to Rewards And Redemption

Certain purchases help you earn regular or accelerated rewards. Ensure you know which categories help you earn rewards, and the terms associated with them. This way, you can use your card for the categories that reward you the most.

Next, make sure you check your card’s rewards portal for redemption options such as cashback, miles for travel, paying your bill, and more. Also, ensure you redeem reward points before they expire, so you don’t lose out.

Pay Attention to the Terms

All credit cards come with their own terms and conditions related to caps on benefits, annual fee reversal, spending milestones and more. Make sure to spend some time on this document, so you know how to get the most out of your card.

This also keeps you from being surprised in the future if there is a fee associated with a certain facility, such as a cash withdrawal.

Now that you know how to maximise your benefits, choose the right card. Get one that offers exciting perks while aligning with your spending habits and budget. Consider the One Credit Card, which has zero annual and joining fees and offers attractive benefits.
You can enjoy 5X rewards on your top two spending categories, get dining discounts, enjoy fuel surcharge waivers and more. The One Credit Card App further makes managing your card easier by allowing you to set spending limits. Apply now and get an instant virtual credit card that you can use as soon as you are approved!