Credit Card: No one will tell you how to use credit card like this! You can save money even while spending it..

Nowadays, almost every second person makes digital payments and online shopping. In such a situation, a credit card is not only a means of spending money, but it also opens new avenues of savings and investment if used wisely.

Many people consider it just a loan, but the reality is that if it is used properly, it can give more benefits than a savings account. Cashback, reward points, discounts, free travel benefits, and EMI facility make it a personal finance tool.

1. Choose the right card according to your needs

Analyze your spending habits before getting a credit card. If you travel often, then take a travel card that gives free flight tickets, lounge access, and travel insurance. If you do a lot of shopping, then a cashback card is the best. On the other hand, choose cards that give category-wise rewards for grocery and daily expenses.

2. Make daily expenses through a card

Make expenses like petrol, groceries, online shopping, and the electricity bill through a card. This gives rewards and cashback quickly. Many merchants give special offers only to credit card users. Many times, the annual fee is also waived upon completing the fixed expenses. In this way, you are spending the same, but savings are also increasing simultaneously.

3. Convert big expenses into EMI
If you have to buy an expensive thing, then instead of paying the entire amount at once, you can convert it into No Cost EMI through a credit card. This will not spoil the cash flow, and you will have more money left for investment. Keep in mind that you will also have to pay a processing fee on this. At the same time, instead of paying the entire amount at once, you are paying a small part, so you can invest the remaining money somewhere and get a good return on it.

4. Pay the entire bill on time
This is the golden rule of credit cards. Never pay only the minimum amount. It is important to make the entire payment on time; otherwise, the interest rate is very high. Paying on time improves the credit score. Try to keep the credit card usage below 30%, so that your credit utilization ratio does not deteriorate.

5. Track and improve expenses

Check the monthly statement and know where you spent more than necessary. This will help you identify wrong transactions and change the spending pattern. By looking at the offers of different cards, you will be able to understand where to spend from which card and how much to spend, so that you can take full advantage of it.

Conclusion
A credit card is a hidden savings tool when used correctly. It teaches you discipline in spending and makes you save indirectly through rewards. But keep in mind that if it is misused, this card can also trap you in a debt trap. Therefore, discipline, timely payment, and understanding can make credit card the strongest companion of your financial planning.

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