Using credit cards for maximum benefits

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Using credit cards for maximum benefits

Using credit cards for maximum benefits

By
Add to Favorites:

Credit cards have become an integral part of modern necessities. They not only allow safe and easy transaction of money but also help to keep track of the expenses that the customer makes through the credit cards. The customer also gets the chance to repay the credit within a certain grace period and therefore he does not have to get bothered with repayment immediately. Many credit card companies also offer reward points to its esteemed customers which can be used to purchase products at discount rates or avail free air tickets or accommodation.

There are however certain important steps that are to be kept in mind when using a credit card. Wise and planned use of the credit card can only facilitate maximum benefit to the credit card user.

Factors for maximum benefit

  1. Ensure that bills get paid as soon as they are received or at least within the grace period. A balance carried forward to the next bill cycle will start to accumulate interest rates for every single unpaid day. This will sum up to a huge amount and result in substantial increase in the repayment value.
  2. The credit card user must ensure that even if he is unable to pay the entire credit amount he pays at least more than the minimum payment due for the current credit card cycle.This will ensure that the more of the credit amount gets repaid lesser interest charges will start to be levied on the balance credit amount.
  3. Another trick to avail maximum benefits from the use of credit cards is to use the minimum number of credit cards. This will allow accumulation of reward points faster and can be reimbursed later on for various reward facilities offered by the participating companies. The cash back offer as granted by some credit card companies, can also be used to balance the credit card bill thus decreasing the monthly payment.
  4. Another option that most credit card companies promote is balance transfer. It is a financial tool that helps a credit card user to transfer his current credit balance from an account of higher interest rate to an account of lower interest rate. This allows the credit card holder to pay reduced repayments every month. The bank that holds the new account also offers a zero percent balance transfer program. As per this program the credit card holder is allowed to repay the balance amount without any extra interest rate charged for a particular time period. A customer will be able to have the maximum benefit if he can negotiate for a longer grace period to avail the zero percent balance transfer.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

By Credit-Land, Posted: May 25, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading
Top 5 Credit Card Offers For Those With Excellent Credit

Top 5 Credit Card Offers For Those With Excellent Credit

By Credit-Land, Posted: May 25, 2017

Do you have excellent credit? If so, banks are actively looking to win you as a new credit card customer by offering some unprecedented deals. Although banks have been more careful about acquiring customers with questionable credit ... Continue reading
Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading