Using credit cards was once reserved for the elite, but nowadays, you don’t need to be particularly rich to enjoy a credit card lifestyle. What does a credit card essentially do? Well, to put it briefly, you can buy what you wish now and pay for it later in installments. Basically, it is designed to help you enjoy your life more and without pressure.
That being said, using a credit card smartly is very important. If you don’t pay attention, your lavish lifestyle can easily turn into neverending debt. This is why we’ve devised a guide on how to properly use your credit card and get the most lifestyle benefits possible! Read on!
1.Get a card with a high credit limit
There is no one-size-fits-all credit limit. Request the maximum credit limit possible when applying for a new credit card. As well as providing you with more potential money to spend, a high credit limit will raise your credit rating. The fact that a large spending limit shows that you are not desperate for credit, which helps to build a good credit history. Therefore make sure to pick a card with a high credit limit such as one of David Jones American Express cards and enjoy a life of luxury.
2.Collect reward points
Whenever you use your credit card for a previously specified amount of money, you’ll be collecting rewards and becoming eligible for a cashback. The reward points may be redeemed for certain benefits such as hotel stays, airplane tickets, and more. This depends on your credit card provider. The sort of rewards you want to earn, your lifestyle, and your spending patterns will all play a role in determining which credit card is best for you.
If you’re wary of getting a credit card because you’re scared of spending more money than you can afford, you should have this mantra in mind. Use your credit card for the regular purchases you would even make in cash. This way you can enjoy the credit card reward system and be confident you can repay your purchases in full.
3.Choose a provider wisely
Customers may buy now and pay later with the convenience of credit cards. Aim for a credit card that covers your three most frequent sources of spending and you’ll be well on your way to financial freedom. As an example, if you’re a big internet shopper, you’ll want to look for a lifestyle and entertainment card that gives perks like expedited points for online shopping. Match the credit card with your lifestyle choices and you’ll do much better than someone who opted for a credit card without giving it much thought.
If you hadn’t used a card before you may find it confusing from the get-go. If you wish to reap all the credit card benefits it’s important to never overlook the crucial safety measures.
Firstly, never give out your credit card information to other people. No matter how much you may trust them. Also, if you get a call from someone climbing to be from your bank and is asking for information – keep your mouth shut! The legitimate bank officials would never ask you to provide such sensitive information over the phone.
Furthermore, make sure you’ve given permission for contactless payment. You can also enable the PIN feature when you pay contactless. This will secure you from someone taking your card and using it without your knowledge.
5.Make your payments on time
With credit cards, it’s extremely important to make your payments before they’re due. It’s common knowledge, yet many choose to disregard it, and the results may be disastrous. On unpaid amounts, credit cards charge interest at a relatively high rate. So if you don’t pay your credit card bills on time, you’ll have to spend a lot of money on interest charges. In addition, if you don’t pay on time, your credit rating will take a hit.
6.Don’t disregard the fees
Fees for opening and renewing a credit card account are common. There are, however, cards that do not charge a fee. Pay attention to the charge structure while shopping for a credit card. The price should be modest, and the card’s advantages should exceed it. Furthermore, if you use your card for a particular amount each year, you may be able to get a fee refund. This cashback option can save you money on yearly fees.
Finally, the best way to find a credit card that suits all your needs is to talk to bank personnel. However, it is your own research that is the most important factor. With careful and prudent use of your credit card, you may enjoy a better quality of life.