All about how to use Credit card Smartly

Best way to use Credit card smartly India 2021

The Credit card is now available with different types of futures, Because this card comes  with ease of use, convenient pay option and the Offers, Deals, Discount we get with this card that No other cards are providing financial support, However this card can become debt trap, if the card not used correctly ,or may be if you spend more than that you can’t afford to pay back, When this card bill comes to you. So be careful while spending with this card.

Here we have explained use Credit card smartly in India 2021 with Benefits & Disadvantage.

Credit card Benefits:


1. Easy Access .

The Money will not go out of your account, when you use this card to pay for a limited time period, and it is easy to access to pay any where any time.

2. Creating line of credit score.

This card offer you to create a line of your credit score, and this is very important. it allows bank to view credit history based on your card repayment, Banks and financial institutions often look to card usage as a way to gauge a potential loan applicant’s creditworthiness, Maintain credit card is important to future loans and rental application.

3. EMI facility,

The EMI facility will get, if you’re plant to purchase something, that will cost high price, to save amount you will get an option to pay EMI, for monthly for a small amount, you can also choose to pay off your purchase in equated monthly installments, Paying through EMI is cheaper than taking out a personal loan to pay for a purchase, such as a Vehicle, or an expensive Mobiles.

4. Incentives and offers.

Most of this card that offers with incentives, reward points, which is a particular period of time during which your outstanding credit is not charged interest, The range between 45-60 days that you can avail free the offer facility range from cash back to rewards point accumulation each time you swipe your card which you can later redeemed as air miles or just used towards paying your outstanding card dues
the card service provider also offer discounts on purchases made through a this card, such as on flight tickets, holidays or large purchases, etc, so that will helping you save money.

5. Finance with Flexibility.

This cards come with an interest-free for limited time. which is a Limited of time during which your outstanding credit is not charged interest that already used These ranging between 45-60 day that you can avail free short-term credit if you pay off the entire balance due by your card bill payment date.

6. Will get Record of every Expenses,

Credit card will record each purchase made through the card and also with a detailed list sent with your monthly credit card statement This facility can be used to determine and track your monthly or daily spending and Explained to purchase. which could be useful take right decision on right time to spend money The credit card provide Lenders also provide instant alerts each time you swipe your card with detailing the amount of credit still available as well as the current outstanding on your card.

7. Protection on Purchase.

While most major credit card networks offer purchase protection, the name of the feature may differ by company. The differences can impact the time credit card users have to submit claims, It’s worth noting that purchase protection serves as secondary coverage, meaning you must first file a claim with your primary insurance

Credit card Disadvantage:


1. Hidden Cost.

The Plastic cards appear to be simple and Easy Convenient at the outset, but have a number of hidden charges that could pack up the expenses overall cards have a number of taxes and fees, such as late payment fees, joining fees, renewal fees and processing fees. Missing a card payment could result in a penalty and repeated late payments could even result in the reduction of your credit limit,
which would have a negative impact on your credit score and future credit financial process.

2. Minimum Due Amt to pay.

The biggest con of a credit card is the minimum due amount that is displayed at the top of a bill statement the number of this card holders are into thinking the minimum amount is the total due they are obliged to pay, when in fact it is the least amount that the company expects you to pay to continue receiving credit facilities this results in customers to assuming their bill is low and spending even more, accruing interest on their outstanding, which could build up to a large and unmanageable sum over after a time.

3. Offer facility to overuse credit card.

With revolving credit since your bank balance stays the same, it might be tempting to put all your purchases on your card and this making you unaware of how much you owe and This could lead to you overspending and owing more than you can pay back, beginning the cycle of debt and high interest rates on your future payments.

 4. Highly interest rate charge.

If you do not clear your dues by your billing due date, the amount is carried forward and interest is charged on it. This interest is accrued over a period of time on purchases that are made after the interest-free period. This card interest rates are quite high, with the average rate being 3% per month, which would amount to 36% per annum.

5.Fraud on Credit card.

Though not very common, there are chances you might be victim of this card fraud. With advances in technology, it is possible to clone a card and gain access to confidential information through which another individual or entity can make purchases on your card. Check your statements carefully for purchases that look suspicious and inform the bank immediately if you suspect card fraud. Banks usually waive off charges if the fraud is proven, so you will not have to pay for purchases charged by the thief.

Here we explained the way to use Credit card smartly.

How To Use this Credit Card in Smart way:


To avoid being debt due to unwanted spending on your credit card, keep the below tips in mind:


Read the fine print so you’re aware of all the charges and conditions that govern your card.

1. Don’t spend more than you can pay back.

2. Avoid putting daily purchases on your card so that you’re aware of how much you’re spending.

3. Periodically check your credit limit and rein in spending when you’ve crossed 40% of your available credit limit.

4. Choose an EMI option for large purchases put on your card to avoid having to pay interest on outstanding card amounts.

5. Always keep at least 40% of your credit limit for emergencies.

6. Plan your purchases and use your card only for planned purchases. Avoid impulse buys on your card.

7. Always try to pay your credit card bills in full each month to avoid the interest charges.

8. Never miss a card payment, as this will result in higher charges and a hefty penalty.

9. Approach the bank if you’ve overspent on your card. They could help you devise a pay-back plan with a fixed rate of interest to avoid you falling deeper into debt.

10. Follow above tips to avoid the late fee of card debt so you can enjoy a stress-free future with your card.

this is all  about we explained about Best way to use Credit card smartly.