Credit Card Tips and Advice

5 Things To Do with a New Credit Card

Is this the first time you got a Credit Card? If you answered ‘Yes’ to this question and if you are not familiar with the do’s and don’ts in the initial stage after getting a credit card then this article is for you. When you get a new credit card there are a few things you have to take care of and a few things that you should do. So in this article, we will tell you all the things you should do when you get a new credit card. So make sure that you read the whole article till the very end and make sure that you take care of the things mentioned below.

Activate your Credit Card

The first thing you should do when you receive a new credit card is activate it. In most cases, there is usually a sticker on the front of the card with instructions on how to do so. Simply follow the instructions provided and you will be able to activate your credit card easily. Usually, the process includes entering your credit card number sometimes they ask you for the whole credit card number or sometimes just the last four digits of your credit card. Once you have activated your credit card then you will have to set a PIN. Make sure that you set a strong PIN that is easy to remember and difficult to predict as well. Stay away from the most common number combinations like 0000, 1234, 1111, etc as hackers can easily predict it and might result in fraudulent activity. So follow the instructions carefully and do the needful.

Read the Terms & Conditions

The majority of the people do not read the terms and conditions. They take this lightly and for granted too at times. But reading the terms and conditions is one of the most important steps. Make sure that you read about your joining offer. But in most cases, this joining offer comes with a condition. This condition could vary in various credit cards. Some of the conditions are like your first transaction should be 500 rupees to avail of the joining offer or in other cases, this amount might be higher for eg. your first transaction should be of rupees 1000 to avail of the joining offer. Or in some cases, the condition is also that you have to spend the respective amount mentioned in the given period of time to avail of the joining offer. So you can miss out on such things if you do not read the terms and conditions.

There have been cases where people did not get access to the joining offer and missed the given timeline according to the condition mentioned and they ended up regretting it later on. So make sure that you go through all the terms and conditions and read them carefully. And if there are any conditions given about the first transaction make sure that you achieve that target and get your hands on the joining offer.

Be Aware of the Insurance Benefits

Make credit cards give you Insurance benefits. So check if there is any insurance benefit applicable to your credit card. In most cases, people take the advantage of the Insurance benefit but do not add a nominee. Adding a nominee is one of the most important things. Life is unpredictable and if anything unfortunate happens and if you haven’t added a nominee then your family will not be able to get the insurance benefits. So make sure that you add a nominee who can be your wife or husband, parent, family member or relative, or even a person who is close to you.

Every card has a different process altogether to set a nominee. So firstly you can read the documents that you have received along with your credit card carefully. There are details given about setting a nominee. Or if there is no information given about setting a nominee then contact customer care.

Be Aware of your Credit Cycle

You have to check your credit statement cycle before you start to use your credit card. You have to be aware of the dates when your credit statement is generated and the deadline for paying your bill. Get to know your credit cycle well and then you can plan your expenditures accordingly. For example, it is advisable to make huge payments at the beginning of your credit cycle so that you get extra time to repay the amount. Knowing the deadline is super important.

Make sure that you pay your bill on time and do not miss any payment at all as this might affect your credit score. Nowadays make credit cards give you the facility of setting your credit cycle. So if the date does not match your expenses then you can call customer care up and change your date and set the one that is the most convenient to you. In many cases, you can change the date just through the official online application. So make sure that you take advantage of this facility and set your credit cycle according to your needs.

Set a Usage Limit for your Credit Card

Setting a usage limit for your credit card stand amongst the most important things you should do with your new credit card. Some people get a credit card for online use only. Whereas some people get it for offline transactions as well. So if you have taken a credit card for online spending then make sure that you turn the other modes of transactions off and do vice versa for offline spending. In most cases, international spending is already kept off. So if you want to spend internationally then you can turn it on.

It is super important to set a transaction limit for all types of transactions. Keep your normal limit low so that even if your card gets stolen or any fraudulent activity happens then your loss will be minimal. And if you want to make a transaction above the limit that you have set then you can change the limit just for the time until you make that transaction and then change it back to the minimum amount again through the card issuers app in just a few minutes. So make sure that you set a minimum limit for your transactions.

Get to know your Promotional Rate Time Period

When you first get a credit card make sure that you are aware of the promotional rate time period. Also, check when this promotional rate period expires. In many cases, this promotional period lasts for around and at least six months. But some card issuers offer a promotional rate period of around twenty months as well. So make sure that you check the expiry of this promotional rate period to take maximum advantage of it by paying off the amount completely before this promotional rate period ends.

Be aware of the Rewards Program for your Credit Card

You can gain maximum benefits from the rewards program. Some credit card issuers require you to register first before you earn a reward and in other cases, you can earn rewards just when you make transactions while you swipe your credit card. So be aware of the reward benefits program for your respective credit card, take advantage of this reward program and gain maximum benefits!

Finally, to conclude, we have covered all the things you should do when you get a new credit card. So make sure that you make a note of the things mentioned above and start your credit card journey!