The best credit cards in India offer numerous advantages to users. Credit cards are a great source of meeting one’s financial requirements and funding dreams, provided the user follows a disciplined approach to using the credit. Its benefits can be vanished because of the unchecked usage of credit cards. Credit card debts and new transactions on it attract hefty charges and keep adding to the interest costs until you repay the entire outstanding. Reckless spending can force credit card users into debt and spiral into financial distress. Therefore, one should steer away from overspending and know how to use the cards responsibly. Let us tell you how one can keep a check on their credit card bills.
How to Keep Your Credit Card Bills under Control
- Live with a limited number of credit cards.
There are numerous credit cards that an individual can use for different benefits. But avoid using multiple credit cards. It will be hard to keep track of your expenses through multiple cards. Ideally, stick to one or two credit cards offering you the most benefits. If you want to use more than one credit card, It will be good to keep a primary card for all regular purchases and limit the purchases on other cards to specific purposes only. Choose the best credit cards in India that complement the expenses you usually make. If you have cards that you do not require anymore, discontinue them by paying the dues and informing the issuer.
- Manage all your debts
Managing your finances must be the top priority if you use credit cards and have loans to repay. Many individuals may be tempted to settle the low-interest debts first. But it might end up hurting their finances. It is always best to clear the high-interest debts first because it helps in saving the interest costs you would otherwise have to pay.
- Clear the entire credit card bill on time
Many credit card users habitually pay only the minimum credit card bill every month. It is hazardous because it continues to add to their debts. It keeps accumulating the credit card balance and thus charges and penalties. The best way to control your charges on the credit card is to pay the bill timely and in full. It will keep your dues at manageable levels. There are different slabs for interest charges on different transactions. Cash advances using your credit cards attract higher interest. Therefore, always try to make the entire credit card bill payment on time.
- Keep the credit utilisation ratio.
The bank can offer you a high credit limit if you have maintained a high credit score. But it is not suggested to use your entire credit limit. It will be best if you keep your credit utilisation ratio low. It will help you to get further credit at a low-interest rate. Experts suggest utilising only 30% to 40% of your credit limit. Use credit cards only when you are really in financial trouble. If you are an individual who prefers to make most purchases on credit cards to earn rewards and cash back, make sure you pay your bills on time.
- Convert outstanding balance into EMIs
Most credit cards come with the facility of converting your pending dues into easy EMIs. It helps users repay the total bill in smaller payments at their convenience. In the case of EMI conversion, the interest rate on credit card dues becomes much lower than the interest charges on unpaid dues. Try to convert the EMIs for the shortest tenure because the interest rate varies for different tenures to repay the outstanding amounts.
- Always check your bill thoroughly.
It is a fact that most credit card users do not pay much attention to their monthly bills. It keeps them unaware of miscellaneous charges levied on their cards. It may increase your due amount. There can be erroneous charges in your bill. You will never spot these without reconciling your bill with the transaction receipts – for example, the interest rate applicable on credit cards. It changes with the change in the Prime Lending Rate. You need to check your bill thoroughly while making a credit card bill payment to know if this rate is as per current changes.
Thus, following these mantras, credit card users can keep their bills in control and will be able to avoid compiling debts. Handle the credit card wisely to benefit from instant fund availability with credit cards in the long run.