How can one get the most out of their credit cards?


Credit cards not only allow us to pay the fees we want, even if there is a temporary liquidity problem, but they also ensure that we get the value of these fees and provide additional fees such as refunds, bonus points, special discounts, etc. When we calculate the total amount cost. On-time in each billing cycle. The financial discipline of using a credit card can also help the users to establish a credit history and improve their credit score, which helps them apply for larger loans, such as home loans, personal loans, and car loans.

Although many of us have been using credit cards for many years there are some key tools and facts that most of them do not know. Banks do not provide credit cards to all customers, they approve for customers who meet the eligibility criteria such as minimum income, type of occupation, etc.

Credit cards using FD:

However, if you do not meet the eligibility criteria, you can ask your bank to issue a credit card making your fixed deposit as a guarantee. Under certain conditions, banks usually allow credit cards with a maximum limit of 90% of the FD value. However, if you fail to make the credit card payment, the bank reserves the right to recover these payments after paying the guaranteed FD.

Getting easy EMI for large expenses using credit cards:

Most of us may know that high-priced purchases such as home appliances, and furniture from select retail outlets made using credit cards can be converted to EMI at the time of purchase. but users should be aware of any fees they may incur before taking advantage of the EMI options. Additionally, your combined monthly card spending, including such EMIs, should ideally stay below 30% of your card’s total credit limit to minimize any negative impact on your creditworthiness.

Credit cards in preapproval of loans:

Many of the lending banks usually provide pre-approved credit to their selected credit card customers. The interest rates on these unsecured loans range from 12% to 30%. Your EMI will be added to the monthly fee. However, because they are pre-approved, these loans can be paid off quickly, which makes them an excellent tool for obtaining credit in any financial emergency. Therefore, one must read the credit rules carefully before registering, checking its availability, and ensure that the account balance credit limit is sufficient to meet the card’s other consumption requirements.

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