Your First Credit Card? Here are Some Smart Ways to Use It
Choosing your first credit card can be very intimidating with the numerous options available in the market. But getting your first credit card is a milestone achieved, as you are one step into financial independency. However, it is still important to use your card wisely as it will build your credibility and when in future you would require a loan, this credibility will help.
Here are some tips to use your card wisely:
1. Budgeting
Managing your spends is extremely important when it comes to credit cards, as you pay interest on the money you borrow. Credit cards present us with great pay back options even when we don’t have the money in the present, but this often leads to overspending, which impacts your credit score. Hence, having a clear breakdown of your budget is extremely important before spending with your credit card.
2. Rewards and cashbacks
Credit cards pack many rewards, cashbacks, discounts and benefits. Do your research on the rewards and points structure, this way you can make the most out of it. Read more about your Emirates NBD credit card rewards
3. Lifestyle
Choosing the right card is important, as you shouldn’t get a card for the welcome bonus or early bird bonus. Get a card which matches your lifestyle, sometimes you may not require a card which extremely high end, a simple credit card with benefits suiting your needs might be the best for you.
4. Cash withdrawals
Cash withdrawals are an extraordinary benefit with credit cards. However, this comes with a charge of the withdrawal and since the money withdrawn is borrowed there’s an interest levied on it. Be mindful and use this only in emergency situations.
Use these tips to build a good credit score. This will also grant you more rewards and faster approvals from lenders in future.