Useful Tips for First Time Credit Card Users
Having a first credit card can be a step towards building a strong financial future. However, you need to make sure you’re using it wisely and responsibly. If not, though, it can lead to an enormous build-up of debt that comes with very high interest rates. Hence, paying off your balance won’t be easy.
If you’re someone who has never used a credit card in the past and are looking forward to applying for a credit card, going through the blog would help. In this write-up, we will be discussing a few of the most useful tips that can help you use your first credit card wisely.
Without further ado, let’s have a look.
Pay Your Bills in Full
You may have been surprised looking at the high-interest rate of the credit cards, which are also known as APRs. But there’s nothing to be intimidate about as long as you pay your credit card bills on time.
Don’t Overspend
Another tip for first-time credit card users is to not spend more than 30% of the credit card limit. This percentage is called your Credit Utilisation Ratio, and it’s a common metric that measures how much money you actually use from your total available credit. To calculate this number, divide the total amount you owe by your total credit limit. For example, if your current balance is Rs, 40,000 and you have a credit card limit of Rs. 100,000, your credit utilisation rate will be 40%.
Keep Your Credit Card Active
Don’t be afraid of using your credit card. Keep it active by using it from time to time. Not using it at all does not benefit the user in any way. And it’s also important for the credit issuers and lenders to see how you use your credit card. Keeping your credit card active will also prevent it from getting closed by the lender.
If you’re looking to apply for a credit card online, feel free to WeFin. We provide you with the hassle-free credit card application process with approval within minutes from India’s most trusted banks and NBFCs. We are your single-stop solution for all your credit card needs, personal loan, two-wheeler loan, and more.
Contact us today!