You've finally come to your senses about the benefits of having a credit card and have chosen to apply for one. The anticipation of purchasing here and there and receiving various rewards built up over several weeks. However, you're at a loss now that your brand-new credit card has come in the mail. The only thing you know for sure is that you're tempted to spend! In spite of the fact that using a credit card is all about making purchases, you should take some time to double-check that everything is set up correctly. This can save you time and money by helping you avoid costly and preventable blunders. If you've never used a credit card before, these are the things you should do when you acquire one:
Become familiar with the Terms and Fees
You would have received a lot of paperwork with your new credit card. Do go through it to have a basic knowledge of the terms and fees associated with your credit card. Start by checking your credit limit, which is the amount of money you'll be able to put on your card. Find out what your credit card's annual, late, and balance transfer fees are as well as the international transaction and other costs.
Install a Mobile Banking app
After activating your new credit card and before you begin spending, download the app from your card issuer to set up mobile banking. You'll be able to manage practically every aspect of your credit card in this manner. If you lose or misplace your credit card, you may check your credit score, see your statement, and even freeze your card using your smartphone. If you want to be notified every time your card is used, you may also set up push notifications.
Verify the Conditions of the Welcome Bonus
Special introductory benefits like free hotel stays, airline companion tickets and extra points may be found on many credit cards nowadays. Occasionally, a mistake is made and the erroneous offer is connected to a transaction. To be on the safe side, you might phone customer support and ask the executive to repeat the available incentives, including the bonus points or amount, the spending criteria, the deadline to satisfy them, and other terms and restrictions.
Set up a recurring payment system
Paying your credit card bill on time and in full every month is the most critical aspect of using a credit card. Using autopay ensures that you will never be late on a payment again. A higher credit score is also a benefit because interest charges on your purchases are avoided. Make sure you have enough money in your bank account to cover your credit card bill through autopay, as even a single late payment can harm your credit score.
Benefits can be activated
Many credit cards come with incentives, but you have to sign up for those advantages or enrol in the rewards programmes before you can use them. There's no need to put off this phase, just as there isn't with card activation. Cashback at supermarkets and retail chains, access to airport lounges, and other perks are examples of these privileges. Since not everyone will take advantage of these incentives, banks figure they may as well give them to clients who are prepared to go to the trouble of signing up for them.
In order to avoid overspending, limit your credit card spending to no more than 30% of your credit limit or less. This is due to the fact that making heavy use of your available credit can lower your credit score. Keep your new credit card in a secure location and use it wisely. When used wisely, a credit card may be a valuable tool for improving your standard of living and establishing a solid credit history.
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