Cardinsider.com is a portal for comparing credit cards and choosing the right card based on one’s financial needs. Here are some useful tips shared by Card Insider to ensure wise usage of credit cards:

  1. Maintain a low credit utilization ratio – Every credit card has a credit limit which is based on the user’s income and credit score. While some banks may offer a high credit limit, it is best to maintain the credit utilization ratio under 30%. This helps in building a good credit profile. 
  2. Closely track credit card statements – Tracking credit card statements helps in monitoring one’s credit spending pattern. It also tells you how you spend and which areas you spend the most in. Studying it regularly can tell you whether the existing card suits your needs or you need to switch to a need-specific card.
  3. Timing of purchases – It is advisable to make purchases through your credit card in the initial days of the month. This will allow you a larger interest-free period and help you save on interest costs in the long run.
  4. Automate your payments – Automating credit card bill payments ensures that you don’t have to remember or miss any of your monthly credit card dues. This will also help in maintaining a good credit track record. 
  5. Pay full bills – Many credit card issuers may allow payment of minimum due every month. However, this can affect your credit score. Therefore, pay credit card dues in full to keep a consistent and good credit pattern.
  6. Check for rewards – Checking reward points regularly will help in ensuring that you do not miss out on redeeming the points on time. Also, in case you have multiple cards, you can make use of alternative cards once the maximum reward point limit is reached.

All these points will allow you to make the most of credit card usage while ensuring a long and positive credit usage pattern.