Top 5 Credit Card Hacks: Most people use credit cards to make basic transactions; when in fact, credit cards are powerful financial tools. Banks usually design the terms and features such that it favors the institution rather than the customer. However, there are some tricks that when learnt, the advantage can be flipped to your side. Here are the best five credit card hacks that banks do not openly discuss.
Banks make huge profits from interest on unpaid balances. Paying your dues before the billing cycle closes reduces your credit utilization ratio and boosts your credit score while high-interest charges are avoided.
Most cards provide 45-55 days of interest-free credit for those who are wise with their purchases. You need to plan your purchasing spree just after the billing date. This will be the best way to repay without paying even one rupee in interest.
Banks generally dangle all these rewards in front of you and then forget to redeem them at expiration. Conversion to vouchers, tickets, or bill payments usually gives a higher value than small gift items. Always keep an eye on those expiration dates so as not to lose your hard-earned rewards.
Annual fees, late fees, and even interest rates are never fixed amounts. Good payment history will guarantee that most of the banks will waive or bring down the charges whenever you contact the customer care service and negotiate. More often than not, loyal customers gain more bargaining power than they know.
If one card is costing you a fortune due to the interest levied, transfer your outstanding amount to some other card offering a low or even zero-interest introductory period. This will give you the breathing space of clearing up debt without the added burden.
Also Read: Credit Card Offers: Get Up to ₹50,000 Discount This August
Banks thrive on customer unawareness. Paying smart, maximizing rewards, and bargaining on fees would convert your credit card into savings, rather than a debt trap. The real power in credit card transactions lies not in the act of swiping, but in the intelligent use of these hidden hacks.
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