How Credit Cards Work: Learn How To Maximise The Benefits

Paying credit card bill on time improves credit profile with the bank, leading to increased benefits from the credit card provider

The COVID-19 pandemic has hugely impacted the income of the working population as companies have either cut jobs or salaries. Even those running their own businesses have been struggling to maintain a stable, regular income due to recurring lockdowns and restrictions. In such a situation, using credit cards can help in meeting current household needs and expenses on medical emergencies or long-term financial goals such as higher education of children and their marriage. Though credit cards can help people tide over immediate financial crunch, they demand careful management as even a small oversight can land users in a big debt. Also, breaching the credit card limit is unwise as it affects the credit profile of users. For beginners, here are a few tips on how to make the most of a credit card. Time your purchases Every credit has a billing cycle. Make yourself aware of the bill generation date to maximise your interest-free period. For example, if a card user makes a purchase right after the credit card bill is generated, he/she can enjoy up to 45 interest-free days, in some cases even more. But to do that, the outstanding amount should be nil.