credit card:Nowadays the use of credit card is increasing very rapidly. If you use credit card wisely then it is beneficial.
However, irresponsible use of credit card can lead to you getting trapped in debt. Today we will tell you 9 smart ways to use credit card.
1. Fraud protection: Credit cards are convenient for shopping, but if you are not careful then a hacker can steal your card details. To avoid fraud, opt for two-factor authentication, in which you get an OTP on your mobile phone or email ID to approve any card transaction.
If you see any unauthorized transaction, block your card immediately. After this, complain with the card company within 48 hours and report the crime to the national helpline 1930.
2. Set transaction limits
Another way to avoid misuse of your card is to set a limit on your spending amount. If you have opted for the Wi-Fi facility available on your card, money gets debited from your account with just a tap. Therefore, it is a good idea to set a low limit (around Rs 1,000-2,000) for tap transactions. It is also important to set a limit for online transactions, even if OTP is required for online purchases. Be extra careful about international transaction limits. OTP will not be required for international transactions, which is very risky. In such a case, if you are not travelling abroad or making international transactions, deactivate international transactions on your card. It can be activated again whenever needed.
3. Use 2-3 cards for a longer credit period
Experts suggest that you should have 2-3 credit cards so that you have financial flexibility in case there is a problem with a particular card. This enables you to split a large expense so that you do not max out the credit limit on one card. You can also avail multiple cards to get a longer interest-free credit period. This will allow you to reduce your expenses and pay your bills comfortably, instead of getting stressed about paying a large bill at once.
4. Use auto-pay for bill payments
Pay your credit card bills in full every month before the due date to avoid late fees and also avoid being penalized with interest charges of 24%-46% per annum on the outstanding amount on your card. The best way to ensure that you do not miss any payment is to opt for the auto-pay facility on your card.
5. Choose a card according to your spending pattern
Credit card companies lure customers by offering a variety of joining benefits and co-branded deals. You need to be smart about which one works best for you as your card usage should be linked to your spending habits