With the New Year right around the corner, it’s time to start afresh. Turn over a new leaf and set your finances right with a bunch of productive Credit Card habits that we have compiled for you.
Another year has almost gone by and it’s time for resolutions! 2018 may have seen you swamped in Credit Card bills, late payments, and unplanned expenses. With the year inching towards its end, it’s time to take stock of where you went overboard with your finances and start anew.
Additional Reading: 6 New Year Money Resolutions For You
You’re probably chalking resolutions for 2019. Eating healthy, getting enough sleep, maintaining a journal, going on at least one international trip this year, and keeping in shape, etc.
Sure, these are great goals, but what about your finances?
Setting up financial goals is very important. If you are eyeing a stable and organised finance strategy for the New Year, we have a compilation of five Credit Card habits below. These are sure to help you gear up for 2019.
Clearing those Credit Card dues
Debt can give you sleepless nights and put an end to your goals. You’re in luck as this is the perfect time to begin.
Paying your outstanding Credit Card dues is a great way to start. Try directing the greater portion of your funds towards the payment of your dues.
To keep yourself on track, set up an automatic transfer that will divert a certain sum of money as decided by you, towards the payment of your Credit Card bills.
Additional Reading: Tips To Deal With Credit Card Debt
Maintaining a good Credit Score
Let the New Year breathe a new sense of purpose in you. It’s time to take matters into your own hands and mend your credit worthiness. A good Credit Score is your window to faster loan approvals and even lower interest rates.
Paying Credit Card bills on time and in full is another way to maintain a good score.
Additional Reading: 3 Simple Ways To Improve Your Credit Score Before The End Of 2018
Because your Credit Score is a three-digit summary of your credit habits, this should be of high priority to you. This is what lenders or banks take into account as a decision-making criterion. Therefore, you should monitor your Credit Score regularly and take the necessary steps to maintain a good one.
Additional Reading: The Importance And Benefits Of A Good Credit Score
Pro tip: Kick-start the year by checking your Credit Score for FREE. This will give you an idea of the kind of improvement you wish to see in your credit history and help you work accordingly to achieve it.
Reading creditor mail thoroughly
No one loves bulky, uninteresting paperwork. Should you still go through the creditor mail? Yes, please.
Most people just check for their balance, amount to be paid, and the due date for repayment. But there is more in your credit report than you can guess.
Additional Reading: What Your Credit Report Says About You
Here’s why you need to take a closer look at it. Your creditor may be informing you of changes in the terms and conditions. You need to be alert about such changes as they deal with the fee structure, rewards program, changes in the grace period, and interest rates.
Not losing track of rewards points
Credit Card rewards can help you save a considerable chunk of money, but only if you’re using them wisely. This implies knowing how you can earn rewards and making timely use of the rewards once you’ve earned them.
Letting rewards pile up without thinking about how to use them, or far worse, letting them expire, is a habit that you can dodge. If you haven’t kept tabs on your rewards balance till now, now’s a great time to start.
You may be able to turn your rewards into cash, a free movie ticket, or capital for a vacation. Or, you can even use your rewards to keep you ahead financially.
Additional Reading: The Mystery Behind Credit Card Rewards
Not using one card for all purchases
This is a sure recipe for disaster. When you pay for your groceries, book your movie tickets, pay for your electricity and water bills, you have a fat chance of running into debt. The total bill will amount to a huge number, leaving you with outstanding payments.
What you can do instead is have a healthy mix of Credit Cards. Choose from the hoard of options available ranging from Travel, Lifestyle, Fuel, Entertainment, Rewards, Utilities, and Shopping to Corporate, Dining, Airline, and Golf Credit Cards.
This practice not only keeps you sorted but also contributes to a whooping Credit Score by reflecting on your sound money-management abilities.
Pro tip: Try reserving your Credit Card for big-budget purchases. You can take care of daily expenses below Rs. 5,000 through digital-payment portals or cash payments.
Additional Reading: Keep An Eye Out For These Credit Cards With Zero Annual Fees In 2019
As one year comes to a close, it’s time to look forward to the next. Don’t let 2019’s resolutions be empty promises. Start out by taking small, baby steps to inculcate these Credit Card habits. And before you know it, you will be proud of your envy-worthy Credit Score!
Additional Reading: Planning A New Year Vacation Abroad? Don’t Forget To Take Travel Insurance
Now that you have learnt some of the sure-fire practices to a great credit history, why not take a tour of the BankBazaar website and explore Credit Cards options that best suit your expenses!
There is perhaps no better time to seek financial advice than at the cusp of the New Year. If you are on the lookout for Personal Loans, opening a Savings Account, or getting a Credit Card with better rewards than your current one, we are here to help!
Want to begin 2019 with a bang? You are in luck as the BIG BASH DEALS are here! Get a Credit Card or a Personal Loan and win a Google Pixel 3 or Amazon Vouchers worth Rs. 50,000!