Credit Cardshave made our lives easier by streamlining transactions and offering various rewards and benefits. However, we must pay our outstanding Credit Card balance on time to enjoy its advantages.
For a seamless transaction experience, you need to keep a few pointers in mind.
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Tips for a smooth transaction experience with a Credit Card
● Pay your Credit Card bill on time
Paying Your Credit Card bills on time is essential for a seamless transaction experience. Otherwise, higher interest will be charged in case of default payments. Furthermore, some penalty fees will be charged for late or missed payments.
Thus, pay off your Credit Card’s outstanding balance on time to improve your credit score. It can help you in availing credit facilities in the future with lower interest rates.
● Opting for the right credit limit
It’s essential to control your spending and set a credit limit regarding this for the best transaction experience. You can request your Credit Card issuer to set the limit. It will help you to manage payments within the due dates easily. But, practising flexibility in this regard is important. A high credit limit can become a burden, and a small limit can be a problem during emergencies.
● Pay more than the minimum balance
Paying more than the minimum amount can reduce your financial burdens. It can reduce the outstanding balance on your Credit Card. This means less interest will accrue on the remaining balance, saving you money in interest charges over time.
● Check the card statement regularly
Regular checking the Credit Card statements is essential to track your spending and manage your finances effectively, such as repaying your Credit Card bills on time.
● Aware of the additional charges
Checking the additional fees associated with Credit Cards is essential. Most Credit Cards charge joining, annual, and renewal fees from the customers. However, some Credit Card app like OneCard don’t charge such fees. Opting for these cards can benefit you if you want to avoid paying joining, annual, and renewal fees.
● Avoid withdrawing money with a Credit Card from an ATM
Withdrawing money through Credit Cards can be handy during emergencies. But this comes at a cost. The additional charges and interest imposed on it are significant, which can increase your total cost of borrowing.
When you withdraw cash using your Credit Card, most card providers charge a cash advance fee of about 2.5% to 3%, typically a percentage of the total amount withdrawn.
● Carefully check the offers
Credit Cards come with rewards, gift vouchers, cashbacks, etc. Many card issuers have additional reward points for top spending categories. Later we can use these rewards for purchasing items, bill payments, and more. The other offers, like cashbacks, gift vouchers, etc., vary from bank to bank. Another essential fact about Credit Cards is that most of them providea waiver of outstanding Credit Card bill payments in case of accidental death and physical disabilities. However, this feature varies from one Credit Card issuer to another.
● Immediately report lost/missing Credit Card
It’s mandatory to report the loss or theft of a Credit Card, as well as any suspicious activities like unauthorised card access. This helps protect your financial interests and avoid facing significant financial liability.
Once you report a lost or stolen Credit Card, the card provider can immediately block the card and prevent further unauthorized transactions. It helps prevent anyone from using your card for fraudulent purchases, protecting your available credit and avoiding potential financial losses.
Thus, to have a seamless transaction experience, you need to be wary of these offers.
Conclusion
Credit Cards are undoubtedly one of the easiest ways to manage your financial transactions, and when we use them right, the benefits are plenty. So remember the strategies mentioned above for a seamless transaction experience.
