5 Things You Should Know Before Swiping Credit Card

Since credit cards were recognized in the financial markets, borrowing funds has become easier than ever before. You can get an unsecured loan from the bank with just one swipe of the credit card. While being the optimum choice for borrowing funds faster and in an easier way, there are a few things that a credit cardholder must keep in mind before swiping the credit card. The cardholders can benefit the most if the credit card is used correctly, or else they can land in a debt trap. Check the list of things you should keep in mind before swiping the credit card in this blog, which can help you earn more rewards via your credit cards.

Essential Things to Remember Before Swiping a Credit Card

1. Card Swiping Fee: While swiping a credit card at fuel pumps or doing international transactions, you are charged a card-swiping fee. If the bank doesn’t provide any waiver or lower fee for such transactions, then you have to pay the card swiping fee. The standard foreign currency markup fee is 3.5% in India, and a 1% fuel surcharge is charged when swiping a credit card at fuel pumps. It would be better to check all the credit cards that you own before using them at Fuel pumps or for international transactions.
2. Offers on Credit Cards: You can enjoy exciting offers and discounts every month and during the festive season, too. E-commerce sites like Amazon, Flipkart, Myntra, Zomato, etc., offer exciting deals on a month-to-month basis. You get offers like discounts, cashback, reward points, vouchers, etc., when making purchases using a credit card. So, before swiping your credit card, look for the existing offers so you can find the best deal.
3. Reward Points: Before swiping a credit card, check whether your card is reward-based or not. You can earn more using a reward-based card, as you will earn reward points on every transaction, which can be further redeemed under the rewards program. Multiple credit cardholders can check for the best-suited credit card from the cards they have as per the offer and enjoy the benefits. The accumulated reward points can be used for paying utility bills, card outstanding balances, purchasing e-gift vouchers, and much more, depending on your credit card reward program.
4. Easy EMIs: Before spending a significant amount using your card, check whether your card allows you to convert your big spending into easy-equated monthly installments. EMIs are a better option as you can pay the entire transaction amount into smaller units at low interest. The time frame for EMIs can range from 3 months to 18 months. Some e-commerce sites also provide you with interest-free EMIs, which can also be purchased with a credit card.
5. Credit limit: Some credit cardholders spend recklessly through credit cards, and in doing so, they can exceed the credit limit. Exceeding the credit limit attracts over-limit charges and may also decrease your credit score as your credit utilization ratio reaches very high. So, bear in mind to check how much credit limit you have and how much you have used before swiping the credit card for another transaction.

Also Read: How To Check Your Available Credit Limit?

Parting Thoughts

Credit card usage can prove to be more advantageous if used properly; otherwise, using it recklessly can land you in an unfortunate situation. Check all the possible ways that can help you earn more benefits on a credit card before swiping it. We hope that the above list might have given you an idea of things to bear in mind before swiping a credit card. Not using a credit card responsibly can cause you more harm than good. To accrue the most out of the credit card, you need to refer to the most important terms and conditions for all the fees so that you can be a step ahead and protect yourself from falling into the vicious cycle of debt.

If you have anything to add to the list, comment for all the readers.