How to utilize the credit card in daily life routine

2026-01-20

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Credit cards have become a part of modern times, whether it is related to buying something, or even facing emergency problems, just having a credit card minimizes 50% of your stress.

But sometimes those who don’t know how to use it correctly fall into the debt traps, high-interest rates. Also, sometimes there are hidden fees.

So, here is how you can utilise your credit card without any issues. Here is a simple guide to using a credit card.

Here is Step by Step guide for utilising credit card

Start with one good credit card

Don’t pick a credit card just because you find it at a mall or online; choose a credit card that has:

Low or no annual fees
Getting decent rewards and cashbacks when you spend on shopping, electronics.
Supports your wallet or UPI, if you use frequently

Use it for an essential purchase

Whether it’s your groceries, electronics, internet bills, fuel, or monthly OTT subscription, the best way is to pay with a credit card.
These are the expenses you always pay anyway, so why not pay with a credit card and earn points and cashback?
Only spend what you have in your bank, not extra money on your credit cards.

Automate payments

You can set up an auto-debit for payments related to bills, SIPs, and subscriptions through your credit card. It helps you to avoid late penalties and make a strong payment history. Before that, ensure that your credit is paid in full before the due date to avoid interest.

Track spending and set limits

Most of the credit cards show you many detailed spending categories that help you in understanding your spending habits, and set a limit so you don’t overspend. It also boosts your credit score because you are within 30% of your credit card limit.

Take advantage of EMI options

If you are buying something, expensive items of electronics, you can just turn them into EMIs at 0 cost. But check the processing fees and others for closure charges.

Use rewards the right way

When you get rewards or points, don’t let them expire, use them to redeem gift cards, flights, and cashbacks. Some of the cards give benefits like lounge access, hotel discounts etc - use them.

Pay on time, every time

The most important thing is to pay your bill on time, before the due date. The remaining amount attracts interest, even if you have paid, and late payment affects your credit score can make you pay extra charges.

Build a credit history

If you use your credit card the right way, it helps you build a strong credit score. Through which you can easily apply for a home loan, personal loan, or anything else. A better credit score increases your chance of approval.

Final thoughts

A credit card is a tool that can help you save more if used correctly. It helps you!