Credit Card has always made our shopping too easy and convenient
. From a Pen to Plasma, you can buy anything through the plastic card. They are easy to use and are widely acceptable.
You might be using lot of cards but do we know the smart way to use them?
There are few things that you need to keep in your mind before you go for a credit card like
1) what is your billing cycle?
2) How much grace period the bank is offering on your credit card?
3) What are the special offers available on your credit card?
4) What would be the transaction charges on online shopping or on filling petrol?
Now to understand more about them, you can do following these things
1) Billing Cycle: Suppose your billing cycle is of 3rd of every month and due date of payment is 23rd, here you are getting 20days as a payment grace period. So you should do shopping after 3rd of every month, so that the shopping due will be added in the next billing cycle. For example today is November 3rd and if you will do youre shopping today then this amount will be reflected in your next billing cycle, where your due will be 23rd of December. So you are almost getting a grace of around 50 days.
2) Grace Period: You should be absolutely clear about the grace period that is available on your credit card. There are different ranges to it some Banks offer a grace period of 25days, some of 30days or it can be maximum to 55 days. Through this you can plan your shopping and can do your expenditures accordingly.
3) Special Offers on your Card: There are different offers that are available on your card. But mostly we are not aware of them and above that we dont have idea how to use them. So you should be aware of special offers, schemes and services offered on your card. Through this you would be able to get best out of your card.
4) Transaction Charges: Most commonly we are not aware of the transaction charges that will be applicable on a particular transaction. Like while booking a railway ticket online there are few Banks that takes transaction charge which is 1.8%. Same is the case when we use the card for petrol purchase; the surcharge is charged @2.5%.
So do keep these things in mind before going for a credit card.