The phrases “credit cards are an invitation to debt traps,” “they promote overspending,” and “they are harmful to financial health” are ones we hear practically daily. They are only examples of rumours or prejudices. Instead of depending on hearsay, biased opinions, and untruths, you should apply for an IDFC wealth credit card yourself, take the appropriate actions, and develop excellent credit card habits to make this financial tool helpful to your financial health in multiple ways.
By according to these detailed instructions, you can benefit from the best credit card available in India while being debt-free.
Pay down the entire sum on your IDFC first bank credit card every month
The first and most crucial step in maximising credit card benefits is making prompt, complete payments on your debt. A methodical approach to paying your expenses improves your credit score and lessens the need for expensive loan fees. Even if your resources are tight or you overspent and are unable to pay back the entire amount due on time owing to your spending, try to make the minimum payment to avoid financial penalties and late fees that could further hurt your credit score. The most important thing to remember is that you shouldn’t just pay the minimum dues, which are normally 5% of the total. It would undoubtedly drain your finances and put you in debt if you got used to it. Pay off any debt you have as soon as you can while using the finest credit card in India to avoid paying interest.
Avoid making hasty selections just to benefit from alluring discounts and special offers.
Successful credit card users are aware of the importance of exercising control and fighting the urge to take advantage of fantastic offers and discounts merely because they are available. Spending more than you can afford to repay, whether through debt repayment or with money set aside for other life goals, almost invariably leads to debt traps. Even though there are alternative ways to save money, you should only use your credit card for things that are truly necessary. Deals should be carefully considered before being accepted; one shouldn’t accept them at face value. However, make sure that using IDFC wealth credit card won’t cause any difficulties or delays.
Cut back on the number of EMIs you make on credit cards.
Stop using EMIs if you’re one of the eager buyers who does so. However, keep in mind that IDFC first bank credit card EMIs are not restricted by the 5% minimum dues rule and must be paid off each month for the duration of the EMI. The best credit cards in India let you use credit card EMIs to pay for anything you can’t afford all at once. Let’s say for the sake of discussion that your most recent EMI was for 5,000 rupees and that you put 10,000 rupees on your credit card each month. You are exempt from making the monthly minimum payment of 750 rupees (10,001 + 5,000 = 15,000 x 5%). The price will increase by Rs. 5,500, Rs. 10,000, or 5% with an EMI. The applicable GST would also apply to the EMI that was included in the bill. Therefore, be cautious while taking anything out on an EMI.
Whenever necessary, take out a pre-approved credit card loan.
The credit card lending feature is a feature of credit cards that is unknown but crucial. Similar to personal loans, IDFC wealth credit card loans are unsecured and open-ended. However, only a small percentage of consumers with excellent credit histories are pre-approved for loans by credit card companies.
Reputable lenders frequently base the loan amounts on the cardholder’s available credit limit when providing credit card loans. Now that the cardholder’s credit limit has been surpassed, additional card issuers have begun to provide these loans as well, but in a different manner. Due to its incredibly swift disbursements and repayment lengths of roughly 6 to 60 months, IDFC first bank credit card loans are a valuable financial tool to help you deal with financial gaps.
Do not ignore the fact that your reward points are about to expire.
Reward points stand out among the many benefits of having the best credit card in India. The option to convert credit card reward points into gift cards, air miles, store discounts, and even a credit against past-due debts is one advantage of trading rewards for incentives. Different redemption policies apply to lenders and credit card companies.
The majority of credit card reward points have an expiration date, which is more important to remember. Most often, they disappear within two or three years. Keep note of the deadlines for using your reward points to benefit from the diversity of redemption choices.
Organise transactions in accordance with the period that is interest-free.
The interest-free period is the length of time between the transaction date and the date the transaction must be fully repaid as shown on the IDFC wealth credit card statement. Unless your payment is entirely past late, there is no interest applied to credit card transactions done during this time period. You can extend the time period allowed by the finest credit card in India and give yourself more time to repay it by the due date by making the transaction in the first few days of the billing cycle, especially if it’s a large one. The typical due date ranges from 18 to 55 days.
If you promptly pay off your IDFC first bank credit card balances, your credit score will rise.
Your credit score is determined by the credit bureaus using information supplied by the organisation that issued your credit card and other lenders (in the case of loans). Based on your credit score, financial institutions decide if you are creditworthy to apply for loans and credit cards.
Because using a credit card is the same as requesting for a loan, credit bureaus take into account your credit card transactions when calculating your credit score. Using a credit card, which has no mandatory interest rates as long as the entire balance is paid by the due date, is one of the least expensive strategies to improve your credit score.
Always use credit cards responsibly by limiting your spending to no more than 30% of your available credit, making prompt, complete payments on all bills, and avoiding the practise of asking for many loans at once. A strong credit score can be created, maintained, and raised using these factors.
