Here's How to Make the Most of Your First Credit Card

Getting your first credit card is like a milestone in your financially independent life. With so many issuers offering a credit card online, the process has also become a lot easier. When you use your credit card wisely, you can not only earn attractive rewards on each spend, you also build your credit history. The latter proves helpful when you need to apply for a loan for your financial goals. However, the caveat still remains – using the card wisely. How can you do that?
You don't have to scratch your head. Here are some smart and effective ways of using your card the right way:

Get the "Right" Card for You
There are different types of credit cards available in the market–lifestyle cards, shopping cards, travel cards, premium cards, etc. Pick a card depending on your spending habits. It is essential as the reward structure depends on the card you use. For example, if you are looking for exclusive access to airport lounges, SPA & low forex markup, the ideal card would be IDFC FIRST Wealth Credit Card. However, if you commute to work every day in your car, maybe IDFC FIRST Classic Credit Card would best suit you as the card offers a 1% fuel surcharge waiver. 
Tip: Assess your spending pattern and then pick a card that can give you the maximum rewards on each spend. The reward points could be redeemed for additional benefits and discounts.

Understand the Reward Structure
To unlock the reward potential, understand the reward structure of your card. Find out the welcome benefits, spend-based earnings, reward points accumulation and redemption, bonus, etc. Thereafter, ensure that you use the maximum rewards that your card has to offer for value-added benefits. With an IDFC FIRST Bank Credit Card, you get 10x reward points that do not expire and can be redeemed anytime. Plus, there are no caps on how many reward points you can earn while you have zero redemption fees. 

Tip: Ensure you maximise the reward savings structure by making timely payments and redeeming the points on time.
 

Understand the Charge Structure

There's nothing like a free meal. While IDFC FIRST Bank’s portfolio of credit cards come with zero joining fees and no annual charges, it is imperative to understand the charges, especially the late payment and interest charges. For instance, the forex mark-up for international transactions is 1.99% in IDFC FIRST Select Credit Card, while in an IDFC FIRST Millennia Credit Card, the forex mark-up is at 3.5%. Additionally, you must be aware of the late payment charges, interest rates, cash advance fees, etc. 

Tip: Choose a card with minimal charges and avoid transactions that incur a charge. 
Be a Stickler with Bill Payments

Credit card bills are payable within a specified time. Make sure that you pay the bill in full every time. Making full payments builds up a good credit score and saves you from high-interest charges and late payment fines.

Avoid Withdrawing Cash (Unless You Have To)
Credit cards allow the facility of cash withdrawals from ATMs. However, use it sparingly as cash withdrawals incur a charge and the withdrawn money also attracts interest. In fact, even though IDFC FIRST Bank Credit Cards allows you to withdraw cash from ATMs at 0% interest, it is advisable only to use it when there is an emergency.
Use these tips and use your credit card wisely. You would be able to earn attractive reward points and also build up your credit score, one month at a time.

Follow link: Apply Credit Cards Online for Instant Approval | IDFC FIRST Bank