From online credit cards to the classic ones, use of credit-related financial products has become extremely crucial in today’s world. However, one of the major issues that most users face while using a credit facility is that of over-spending.
In order to manage expenses better for your creditcard, preventing the unwanted ones and maximize credit usage, an understanding of the functioning and its uses is imperative.
An effective method to prevent over-spending is by using only online cards. Though quite similar to usual credit cards, these are activated over a short period of time. As a result, they cannot be used unless planned beforehand and generated. Since the funds are not quite readily available unless planned, the expenses are in control too.
Repaying credits on a regular basis is another must in order to prevent extra interests or fines. The minimum due can also be connected to a debit account so that it is cleared regularly. Spendthrift nature is best controlled with a low credit limit, though a high credit utilisation rate can negatively affect CIBIL score.
Users should also try to repay the maximum debt as and when possible. The credit limit should be set on the basis of an overall budget which includes total expected expenditure and its comfortable repayment. Lastly, reward points can be wisely used to gain more discounts, though one should refrain from indulging in unnecessary expenses just for the sake of reward points.
0 Comments