Credit card holders make this mistake, how to use correctly?
The use of credit card has become common in today's time. people see it as a convenient and beneficial financial product. Through this, you can buy essential things, that too without paying money immediately. That is, if you need something and you do not have money, then through this you can buy that thing immediately and pay the amount spent comfortably later. However, it is important to use the credit card correctly, because it has both advantages and disadvantages. Let us know how to use the credit card correctly and what are its benefits and possible disadvantages.
Pay the bill on time
To use the credit card correctly, you should keep some things in mind. Like - paying the bill on time. It is very important to pay the credit card bill on time every month. If you pay your bill late, then you may have to pay interest and fine for this mistake. On the other hand, if you pay the credit card bill on time, then your credit score remains good.
Always keep in mind the credit limit
Exceeding the credit limit of the card can be harmful for you. Always spend within your limit. This helps in maintaining your financial stability and also saves you from unnecessary interest.
These are the benefits of credit card
The biggest advantage of credit card is that it comes in handy in every emergency situation. If you do not have money and suddenly some important expense comes up, then you can make the payment using credit card. Apart from this, the right use of credit card also improves the credit score.
Benefits of rewards and cashback
Many credit card companies provide their customers with facilities like reward points, cashback and discounts. For example, if you shop online, you get extra discounts on using some credit cards. Apart from this, some credit cards also provide cashback on petrol pump and restaurant bills.
Interest free payment facility
Many credit card companies provide their customers with interest free payment facility for some time. This period can be from 20 to 50 days. If you make payment during this period, you do not have to pay any interest on the amount spent.