How to use credit cards smartly and save costs

2 MinsApr 07, 2023

Credit cards have become an essential part of our financial lives, providing convenience and flexibility in making purchases and managing our finances. However, when not used wisely, credit cards can also lead to debt and unnecessary fees.

How to use credit cards smartly and save costs

Make the most of your credit card without falling into debt. Here’s how you can use your credit card smartly and save costs:

(1) Keep an eye on your spending

Failure to monitor your credit card spending can result in falling into a debt trap. Hence, keeping a close eye on your credit card expenditures is essential. Consistently tracking your spending can help you resist the urge to overspend. Additionally, you can set transaction limits for specific purchases on your credit card, making it easier for you to adhere to your spending objectives.

(2) Set a credit limit

Setting a credit limit on your credit card is an important step in managing your finances and preventing overspending. You can control your spending and avoid debt by doing so. It is crucial to remember that a higher credit limit does not mean you should spend more. Instead, it offers you more financial flexibility and purchasing power. By setting a credit limit, you can control your finances better and ensure responsible credit card use.

Also Read: [6 mistakes to avoid when using Credit Cards]

(3) Check credit card statements regularly

Checking your credit card statements regularly is essential for using credit cards smartly. It helps you stay on top of your spending, ensure accurate billing, detect fraudulent activity, and avoid late payment fees and interest charges. You should check your credit card statements at least once a month and verify that all charges and payments are accurate. Contact your credit card issuer immediately if you notice any errors or unauthorised transactions.

As an Axis Bank credit card cardholder, you can simply log in to the Axis Bank mobile app and easily access your monthly statement on the go. You can also raise disputes on the app itself if you find any malicious or unauthorised activity.

(4) Pay credit card bills on time

Paying your credit card bills on time is one of the most critical factors in maintaining a good credit score and avoiding late payment fees and interest charges. Late payments can significantly impact your credit score and make it more challenging to qualify for loans or credit cards in the future.

You can set up automatic payments or reminders to pay your bill on or before the due date. If you cannot pay the full balance, try to pay at least the minimum due to avoid late payment charges and negatively impacting your credit score. By paying your credit card bills on time, you can maintain a healthy credit score, avoid fees and interest charges, and build a strong credit history.

(5) Use free offers and rewards

Using the available offers and rewards on your card is an excellent way to maximise the benefits of the credit card and save money on everyday purchases. Many credit card companies offer reward programs that allow you to earn points, miles or cashback on your purchases.

Axis Bank credit card rewards and offers are designed to give customers an array of benefits and savings on their purchases. The bank offers a variety of credit cards that cater to different lifestyle needs and spending patterns, with each card offering unique rewards and benefits.

Some of the most popular rewards and offers available to Axis Bank credit card customers include cashback and reward points, as well as discounts on dining, shopping, travel and fuel. Some cards also offer exclusive access to airport lounges, movie tickets and events.

You can redeem these rewards for gift cards, merchandise, and travel or statement credits. Additionally, credit card issuers often offer free perks such as airport lounge access, travel insurance, extended warranties and purchase protection. By using free offers and rewards on your credit card, you can get more value from your credit card use and save money on your purchases.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.