Financial institutions offer numerous best credit card in India in line with growing demand for credit cards. A credit card is one of the convenient ways to make immediate purchases, even if you are going through financial trouble. It ensures that consumers can access the required credit instantly, especially when facing an emergency. Also, they are helpful to set a good credit history as long as you use them smartly. 

Banks can easily increase the credit limit for credit-conscious credit card users. An increased credit limit helps credit card users to fulfil their requirements. 

Find simple tips here to use your credit card optimally and boost your credit score:

  1. Look at Promotional Emails from your Bank.

With some smart moves, you can save money on your credit card. CIBIL score is the primary criteria to determine your eligibility for your credit card. Banks keep issuing special offers for credit cards at affordable interest rates and earn cashback, especially during festivals. It will help you to have a good credit footprint if you can get a pre-approved credit card offer.

  1. Pick the Correct Credit Card. 

One can find several ready offers for credit cards. It is good to choose a credit card according to the number of your day-to-day expenses. Instead of availing many credit cards, choose one or two offers. It can be a co-branded reward card to fulfil your lifestyle shopping requirements or any other to receive cashback offers. Many credit cards can add to your credit burden and will impact your credit score negatively. You can earn points every time you make a transaction and use it after accumulating enough as per the lender’s terms.

  1. Keep the Credit Utilisation Limit Low. 

Banks assess the consumer’s repayment ability before fixing the credit utilisation limit. You should apply for a card limit suitable to your repayment capability. You should avoid using all your credit limits. Experts suggest consumers to utilise only 30% of their credit limit. Most consumers prefer credit card payments only when they are really in financial trouble. Over-leveraging your credit utilisation limits must be avoided to maintain a high credit score.

  1. Find Credit Cards with No Cost EMI Facility

A credit card can help you to fund a large expense or purchase, whether it’s a holiday package or an emergency that your credit card can cover. With a no-cost EMI or zero interest card, you can shop on various online marketplaces at a discounted cost. It makes repaying the credit card bill easy and reduces the chance of a missed payment that impacts your credit history negatively. While accepting the card, read the fine print carefully and ensure that there are no hidden charges or processing fees.

  1. Make Urgent or Necessary Purchases using Credit Card

One should decide the monthly purchases to be made with a credit card. There should be a balance on your credit card purchases by forecasting card expenses in advance to achieve your financial goals. If it is an expected large-ticket purchase like home appliances, decide whether you should consider a durable consumer loan with your bank or use your credit card, depending on the applicable interest rate. Also, compare the interest rate charged and offers on your different cards. One card with the same bank can charge a lower interest rate comparatively. This way you will have enough credit limit in case of an emergency.

You can make your day-to-day purchases on your best credit card in India to earn rewards and optimum utilisation of your card. Ensure that you pay your credit card bills on time and in full every single month. A delayed or missed credit card bill payment can decline your credit score. Also, there will be late payment fees and penalties. If you pay only the minimum due, you will have to bear a huge interest rate for the month. It may continue to accumulate credit card interest. Therefore, The cardholders need to repay the entire bill amount responsibly. 

Thus, your good credit behaviour can boost your credit score and open the doors for future credit options. Utilise the grace period or the interest-free period to make interest-free credit card payments and use your credit card for an optimum credit score.