16 Credit Card Mistakes To Avoid During Covid 19 Pandemic | Credit Card Covid Relief Ways | Smartest Ways To Use A Credit Card in 2021

A credit card is a great help in accessing instant credit in a time of crisis. But if the user doesn’t use it responsibly then it can bring a financial crisis in their life. Due to the Corona Virus, the world economy is suffering very badly due to which several people lost their jobs and the process is going on. At this uncertain time, credit card users must use their credit cards very sincerely by following these 16 steps to keep their credit card covid relief effective.

Let’s check the smartest ways to use a credit card:

  1. Apply for Right Credit Card:

Most of the people make mistakes on the first step while taking the card as in most of the cases mostly the bank or their sales officers contact their potential customers to offer a card, which is basically not customized as per the customers need. So if you are going to apply for a new card or you are someone who thinks that your existing card is not best suitable for your need then you must take a new card which can offer you the best possible benefit on your maximum spending. Let’s say if you are using your mainly using the card for online shopping then it’s better to opt for a credit card which can offer you the best possible benefits on the online shopping, like Flipkart credit card or amazon credit card.

  1. Avoid Unnecessary Spending:

In this tough time try to avoid any unnecessary spending, for which you can take a simple step that is if you are willing to buy something apart from the medicine or grocery items, do add the product to your wish list and after 1 – 2 days you take the decision whether the product is really necessary or not, if you feel that the product is not necessary for the next 6 months timeframe then don’t buy as there is a high probability that either you don’t need the product at all.

  1. Credit Utilization:

If you are running out of money or if you are someone who pays all their bills from the card then do remember to utilize it within 30% of the total limit as in the long term it will help you to build a very good credit score. But if you are in a condition where you are bound to spend then never ever cross 90% of the total credit limit. If you think that for you it’s tough to maintain then I’ll suggest you take 2 – 3 cards and make your credit score excellent. This excellent credit score can also help you to get other financial products such as personal loans, home loans, car loans at a far lower rate than the normal customer.

  1. Set Transaction Limit:

If you a frugal spender or else if you want to make your card more secure then you can set a transaction limit which you help you to spend up to a certain amount of money at a time, by applying this you can keep your spending habit within a limit, also in case of any fraudulent transaction, you will lose less money.

  1. Avoid Cash Withdrawal: 

A credit card can be a very good asset if you use it wisely else it’s the worst financial decision for any person. And if you by mistake withdraw any cash using your credit card then the entire outstanding balance will be charged as per the very interest rate set by the bank (normally 40- 49% per annum), along with this you have to pay a one-time withdrawal fee, so try to avoid it at any cost because if the credit card debt started to pile up then it will be very tough to get out from that situation also you will end up losing your credit credibility too.

  1. Use Rewards Points:

While shopping tries to pay through the reward points as it will directly help you reduce your monthly credit card bill. Also, check your accumulated reward points details from time to time.

  1. Manage Memberships and Subscriptions:

For most of the lifestyle, Co. offers discounted membership fees for their credit card users also many co. offer free first-year/month subscription for paying through the credit card, so do check all the present active membership plans. If you think that anything is not going to be useful in the next 6 months or more then do cancel it as soon as possible, by managing your membership and subscriptions you can reduce your monthly credit card bill very easily.

  1. Use Limited Card:

Having multiple cards has its own advantages and disadvantages. But managing those cards is a bit tough until and unless you are using any digital card manager like cred, which help you to remember the last payment date and the amount, though I’ll suggest not to use more than 4 cards as with those cards you will get most of the benefits which you are looking out for.

  1. Travel Bookings:

For any of your travel bookings try to use the credit card as it will help you earn the reward points, cash back benefits as well as in case of any cancellation you don’t have to worry about the refund as it will be automatic gets adjusted in the credit card bill.

  1. Prefer Online Transactions:

Enjoy the credit cards special reward points or the cashback benefits in their partnered online shopping sites, not only that by opting the online transactions you can tally your transactions easily, but also you can make your family safe from the virus threat too.

  1. Make Use of No Cost EMI:

In case of any purchase at first check whether the No cost EMI facility is present or not, if the No Cost EMI facility is available then I’ll advise you to pay through the No Cost EMI mode although you have the ability to pay the full amount of the product or the service. By doing this you can make yourself cash-rich which can be used at times of emergency and also you will get a small interest from your bank account for that amount too.

  1. Keep it safe:

Keeping your credit card safe is very much important as in case of any fraudulent transactions the dispute settlement will take more time in comparison with the normal procedure as now due to the limited mobility many staffs are not present in the office and across the globe the fraudulent transactions has been increased a lot during the pandemic time. So, better to use a credit limit, secure your card with a strong pin, sharing or storing your card details in the trusted website or apps only.

  1. Pay Credit Card Bills Online:

Despite paying your bill over the bank counter, try to pay it online as it is quick and more convenient.

  1. Pay Your Bill On Time:

Pay your bill on time to avoid any unnecessary charges, if you are going to use any third-party application for the payment then try to pay it 7 days before as in many cases if the payment fails due to an error you will only have to pay the price, so in case if you are willing to pay from your bank account directly for hdfc credit card payment then set the auto-debit feature as it will make you tension free, don’t forget to maintain the sufficient balance in the account.

  1. Pay Minimum Due When Necessary:

If you are running out of money then also try to pay the minimum due amount else you will be penalized heavily along with a very bad credit score.

  1. Avail The Moratorium:

In case of any financial hardship, try to use the moratorium if you have the option as it will save you from any bad credit ratings along with the overcharge.

Hopefully, after applying these points your credit card journey will become smooth. In case of any help do let us know.

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