Eight credit card hacks to use your card wisely

Credit card hacks you need to know

These hacks for your credit card are not all-encompassing, but are some of the important ones. Although the primary purpose of using a credit card is to get a float for 45-50 days on your expenses, another is accumulating reward points. To get the best of both these primary benefits here are some hacks-

• Review your credit cards - If you have an option of availing many credit cards catering to several needs, you must choose the one that is best for you. Some credit cards come with annual fees, renewal fees, and other charges. Paying all these fees for a card that doesn't serve your purpose makes little sense.
  
  
• Take stock of third-party programs of your credit card - Many credit cards offer third-party services that offer extra points when you make purchases at participating stores and restaurants. Several cards also have lounge access, discounts on travel bookings, and even free gifts on usage on certain platforms or accelerated reward points. There are credit cards that also offer cashbacks, air miles, or balance transfer to another card or other rewards program, and some additional perks. Do take a stock of these benefits on your credit to get the best out of it. 
  
  
• Spending bonus - Many credit cards have specific threshold benefits if you spend beyond a certain limit annually. If you cross this threshold you receive some extra reward points and benefits. Do acquaint yourself with the terms and conditions of your credit card so that you make the best use of it. 
  
  
• Expiry of reward points - Some credit cards offer rewards through redeem points and vouchers, which have an expiry date. You should use them before their expiry to avail maximum benefits of credit card rewards.
  
  
• Register for promotional events - Promotional events are run by banks, hotels, and airlines occasionally. These credit card promotional programs give benefits like free hotel stays, additional air miles, bonus reward points for your travels, and much more. Based on your needs, you should take advantage of such promotional events to get the best out of your credit card. 
  
  
• Paying the bills before the due date - The most important credit card hack is to pay your bill on time. Every credit card has an interest-free period. This float allows you to manage your expense well. Paying the credit card bill in full before the due date is very important as you can avoid charges like late payment charge, interest on outstanding, etc. 
  
  
• Utilising the balance transfer facility - If you haven’t paid your credit card outstanding amount in full, and you are stuck paying high interest on your outstanding amount, there might be a way out. Many banks and NBFCs offer personal loans that you could use to pay off your credit card debt. If you use these you can pay off your high-interest credit card debt and opt for a lower interest outgo on your accumulated outstanding amount on your credit card. The balance transfer facility can be beneficial in moving the dues to a new credit card which has a lower interest rate than the other cards you may have. Do consult your financial advisor before you take this decision.
  
  
• Increasing your credit limit - Many times your credit card provider will offer you an upgrade on your credit limit. Choose this only if you are able to not spend away on your credit card. Alternatively, you can also ask your credit card provider to increase your credit limit by putting in a request. Increasing the credit limit can work wonders as your credit score depends on your credit utilisation ratio. By increasing the credit limit and not spending above your needs, you can lower the credit utilisation ratio, which, in turn, can increase your credit score.