Credit cards, a cornerstone of modern financial management, offer a convenient way to make purchases, build credit, and reap rewards. However, the path to maximising their benefits while maintaining financial health is nuanced, requiring strategic use and understanding. Here's a guide to the best practices for credit card usage, addressing the selection of the right card,
Paying a credit card bill before the due date improves credit profile and ensures increased benefits
With the COVID-19 pandemic continuing for the second year, the income of a large chunk of salaried people has been impacted. Even those running their own businesses have been trying hard to maintain a stable and regular income due to recurring lockdowns and other restrictions on the movement of people and goods. In these trying times, people are increasingly resorting to using credit cards to meet immediate expenses on household needs, medical emergencies, and even other scheduled expenses like marriages.
Though credit cards can help people tide over urgent financial crunch, they demand careful handling as even a small carelessness in paying the debt can land users in big debt. Also, breaching the credit card limit affects the credit profile of users, reducing the chances of getting a bank loan later.