The moratorium is over, which means the payment of your loan and Credit Card dues cannot be deferred. With the current financial situation, chances are you’ve been relying on your Credit Card to tide you over. Here are a few tips to manage it better.
The moratorium announced by the RBI in the wake of the Covid-19 pandemic has ended. If your finances are still on shaky grounds, chances are you’re relying on your Credit Card a lot more than you used to. Time to brush up on the basics. Here are a few tips to manage your Credit Card:
Mark Your Dates And Take Advantage
Utilise the interest-free period to your advantage. This period is usually 51 days of interest-free credit starting from the statement date to the due date. For example, if a statement is generated on the 1st of September then the due date will be the 21st of October. However, any purchase made on the 15th of September will get only 36 days of interest-free credit. Keep a tab on the dates.
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Next, how much interest are you paying on your card? It’s a good time to go through all of this with a fine comb. For basic cards with low limits, this is higher than other gold or platinum cards. Accepting any interest rate just so you can have a Credit Card is not wise. If you already have one with a high interest rate, you can still explore your options and go with the bank that offers you the best interest rate.
Also, take a gander at the annual fee? Every hard-earned rupee counts. No harm in tightening your purse strings especially when your finances are tight. A time will come when you can go for any Credit Card you want. You’ll have to work for it, but it’ll happen.
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Do some research and go for a balance transfer. Usually, there is a promotional zero-interest offer which is limited to a few months. After that period, the balance attracts the same interest as the regular outstanding balance. Transfer balance to a card which has no previous outstanding balance and pay it off within the offer period. A lot of money in form of charges and interest can be saved.
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No Impulse Buys
Impulse buying using a Credit Card when you’re already struggling is unwise. Tell us something. How’re you going to pay back? You can indulge in all these crazy sprees a few years down the line when you have money to pay up for your impulse buys. Being carefree and generous every once in a while is fine as long as you can afford it and do not end up in more debt.
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Managing your credit effectively requires that you keep up with what is happening in your credit file. You can check your Credit Score as much as you want for free on BankBazaar. Make sure that there are no fraudulent accounts, and that errors are fixed. Inaccuracies can lead to lower credit, further adding to your financial woes. Overlooked – but important, always look through your statement carefully. With scams on the rise, you just might be paying for something you didn’t buy.
Hope this helps. Stay safe, and to sort out other aspect of your finances, click the link below: