Your very first credit card. It’s the ultimate initiation into adulthood. A sign that you’re ready to take accountability for your decisions – the good and the bad. And all of us have made our fair share of both of these when we started; believe us. So, we thought it’d be a good idea to put out some tips to make sure you avoid some common mistakes that first time credit users make.
Make your repayments on time
This seems like a no-brainer, but it needs to be said given the number of people that tend to default on their repayments when they start off. Delaying repayments not only results in an interest being incurred on the repayment, but is also one of the key factors that damages credit score. If you can tend to be forgetful like most people, use the auto-debit feature that most credit companies provide so that the repayment is automatically done without requiring any manual intervention.
Be smart with your card usage
As a first time card user, it can be easy to get carried away with the convenience and ease of using it. A frequent mistake that most people make is to use their card beyond their means. This is a common reason why users end up in a circle of debt and repayments with high-interest rates. Be smart with your usage of your card. Track your spending habits on a regular basis to make sure you aren’t living beyond your means. slice helps users do this through a neat feature on the app that shows users how much they have spent, and on what. You can read more about this, here!
Learn about all the benefits that come with the card!
Credit-lending companies frequently tie up with major brands for offers in order to attract customers. Learning how to use these offers efficiently can result in a whole lot of cost-saving. Keep an eye out for offers on brands or products for which you frequently shop. slice card users for instance, can also use their credit balance to purchase No Cost EMI vouchers on 20+ brands like Amazon and Flipkart all through the year!
Never use your card for cash withdrawals!
This is a big NO that a surprisingly large number of people are not aware of. Withdrawing cash using a credit card can be an incredibly costly affair. Most companies that allow it levy a high interest rate on this feature, in addition to the ATM charges that are incurred. At slice, we have made sure our card can’t directly be used at an ATM for cash withdrawals in order to avoid confusion. Instead, users that really need cash for an emergency can choose to transfer it to their bank accounts, and then withdraw it from an ATM using their debit card.
We hope you keep these tips in mind when you start using your first credit card! In the meanwhile, if you are looking for the right option for your first card, look no further. Apply for slice, and get approved for a credit limit of up to Rs. 60,000 instantly.