We hear statements like “credit cards are an invitation to debt traps,” “they promote overspending,” “they are harmful to financial health,” and so on almost every other day of our lives. However, these are merely distorted viewpoints or false narratives. Obtaining a amex platinum travel card for yourself, using it sensibly, and forming wise spending practices can greatly benefit your financial situation. Refuse to believe these hearsays and false information, and read on as we give you simple tips to use credit cards smartly.
Pay off your credit card debt in full and timely
Pay off your american express platinum reserve credit card debt in full each time to get the most benefit from it. The first and most important step is this. Paying bills on time helps avoid paying excessive interest rates and also lowers credit scores. Even if you have overspent or are in a difficult financial situation and are unable to pay back the entire amount owed on time, try to return the minimum amount owed. Failing to do so may result in late fees, finance charges, and a lowered credit score. However, you should never pay the minimum amount due, which is usually 5% of the total amount owed, on a regular basis. If you became accustomed to it, it would undoubtedly burn a hole in your pocketbook and leave you in debt. Therefore, when using amex platinum travel card, make sure to pay off any outstanding debts as soon as you can.
Refrain from succumbing to the seductive discounts and sales
The ability to exercise self control, which enables them to resist the temptation to take advantage of sales and discounts simply because they are being offered, is one of the keys to the success of savvy SBI credit card users. Overspending can put a person in debt or damage savings and investments intended for other goals in life. It is not a wise decision to take on more debt than you can afford to pay back. Only use your american express platinum reserve credit card when the offer is too good to pass up and it is absolutely necessary. Never take advantage of something simply to outwit someone for the sake of doing so. But make sure you have the money to pay the credit card off completely and on schedule.
Avoid accruing more credit card debt
If you’re one of those obsessive shoppers who has to always have what they want, even if it means putting off making payments, stop shopping. Yes, the best credit card in India allows interest-free installments (EMIs) for expensive purchases that are too expensive to pay for in full. But keep in mind that the EMIs are not covered by the 5% minimum dues; they must be repaid on a monthly basis. To put it simply, let’s say you currently have separate monthly EMI payments of Rs 5,000 and you use your amex platinum travel card to make purchases totaling Rs 10,000 per month. There would be no minimum payment required for that month, which is equivalent to Rs 10,000 + 5,000 = 15,000 x 5%, or Rs 750. Instead, it would be five percent of ten thousand, or Rs 5,500 plus Rs 5,000 (EMI). In addition, any applicable GST on the EMI that is included in the bill would be your responsibility to pay. So, keep all of this in mind the next time you make an impulse buy using EMI.
Obtain a “pre-approved” credit card loan when you need it
One feature that’s worth mentioning is the ability to borrow money using credit cards. Credit card loans are unsecured and available for any purpose, just like personal loans. The credit card preapproval procedure does, however, imply that credit card companies typically only provide these loans to a limited number of clients with excellent credit records.
The loan amount for credit card loans from reputable lenders is determined by the cardholder’s available credit limit. However, some card issuers have started offering these loans in addition to or in place of the user’s credit limit. The american express platinum reserve credit card loans are an advantageous tool for handling financial difficulties because of two main features: their fast disbursement speed and their flexible repayment terms, which vary from six to sixty months.
Keep in mind that the number of reward points you can still earn has an expiry
Reward points are just one of the best credit card in India’s many advantages. Credit card reward points can be exchanged for gift cards, airline miles, retail store purchases, and even credit towards outstanding debt. Different lenders and types of redeemable cards have different redemption policies.
More importantly, reward points on most credit cards—including credit cards themselves—have expiration dates. They usually run out in two or three years. Therefore, in order to maximise the benefits of available redemption, it is imperative that you maintain track of the validity of your reward points.
Plan your transactions so that you can benefit from the interest-free time
The time between the transaction date and the credit card bill’s due date is known as the interest-free period. If you pay the full amount owed by the deadline, credit card transactions are interest-free during this period. The grace period for the best credit card in India is typically between eighteen and fifty-five days. To take advantage of this time and give yourself more time to pay them back by the deadline, make sizable purchases in the first few days of the billing cycle.
Use and repay credit cards to raise your credit score
The credit bureaus use data from credit card issuers and other lenders to calculate your credit score when you apply for a loan. Your credit score is one of the tools that financial institutions use to assess your suitability for loans and credit cards.
Credit bureaus consider american express platinum reserve credit card transactions when calculating your credit score because they are believed to be similar to loan applications. Credit cards are one of the least expensive ways to raise your credit score because they don’t charge interest as long as the whole balance is paid off by the due date.
It’s important to establish responsible amex platinum travel card usage habits, like paying all of your bills on time, not applying for more than one loan at a time, and never using your credit cards for more than 30% of your credit limit. You can improve and keep your credit score high by doing all of the previously mentioned tasks.