Boost Finances and Master How to Use Credit Card Offers: Tips for Beginners

Every individual knows the thrill of snagging a great deal- be it on fashion, gadgets or even daily essentials. But what if your regular spending could do more than just get you what you want? Imagine turning every swipe into an opportunity to earn rewards, save money or even boost your financial game.

With a little know-how, your credit card can become a partner in growing your finances. Here's how you can make that happen.

Set clear financial goals for using credit card offers

Before you start using your credit card for offers, it's important to have a clear goal in mind. Are you looking to earn cashback, collect reward points or enjoy exclusive discounts? Having a specific goal helps you choose the right credit card and decide how to use it effectively.

For example, if you're a frequent traveller, a card with travel rewards might be your best bet. If you prefer cash in hand, look for cards that offer cashback. Setting these goals ensures that every swipe is intentional and works toward a bigger financial benefit.

Always read the terms and conditions carefully

Offers that sound too good to be true often come with fine print. That's why it's crucial to read the terms and conditions before chasing any credit card deal. From minimum spending to expiry dates, the details matter.

For example, an offer might say you'll get 10% cashback, but it could only work if you spend a certain amount or shop at specific stores. If you don't know these details, you might spend extra or miss out on the offer completely. So, it's better to understand the rules to avoid surprises and get the full benefit.

Research and compare credit cards and their offers

Not all credit cards are built the same. Some cards are great for shopping, while others reward you for dining or travel. To maximise your benefits, take time to compare different cards and the offers they provide. Look for features like interest-free periods, annual fees, cashback rates and reward point programs.

Apps, websites and comparison tools can help you identify which card aligns with your spending habits. Choosing the right card can make all the difference in how much you save or earn back on your purchases.

Create a budget for bill payments

Credit card offers can be tempting, but without a proper payment plan, you risk falling into debt. To avoid this, create a dedicated budget for your bill payments. Pay off the full amount each month to avoid interest charges. If that's not possible, set a minimum repayment amount and stick to it.

Late payments not only attract hefty fees but also negatively impact your credit score. Treat your credit card like a debit card- if you don't have the money for it, avoid the purchase. A well-planned budget ensures you enjoy the benefits of offers without drowning in debt.

Use credit cards for specific purchases and not daily expenses

It's easy to get carried away and start using your credit card for everything- from snacks to small impulse buys. But this is a trap. For better financial control, reserve your credit card for planned, high-value purchases where you can take advantage of offers, like big sales, travel bookings or festive shopping.

Daily expenses like groceries, transport or coffee runs are better handled with cash, debit cards or digital wallets. This way, you're more conscious of your spending, avoid unnecessary debt and stay on track with your financial goals.

Keep track of credit card offers and their expiry dates

Many credit card offers are time-sensitive. Whether it's a limited-time cashback deal or a seasonal shopping discount, missing the deadline means missing the reward. To avoid this, stay updated on the expiry dates of ongoing offers.

You can track them using reminders. Some providers also send notifications, so keep an eye on SMS or app alerts. Being aware of deadlines allows you to plan purchases and avoid last-minute panic spending.

Balance your credit utilisation ratio

If you want to build a strong credit score, it's important to keep your credit usage low. This means not using too much of your credit limit. For example, if your credit limit is ₹1,00,000 and you spend ₹30,000, you're using 30% of it.

It's best to keep this usage below 30% to show lenders that you can handle credit responsibly. Using too much of your limit makes it seem like you're struggling with money, which can hurt your credit score. A good score can help you get better loans and higher credit limits in the future, so it's smart to manage how much credit you use.

Use your credit card wisely for making purchases

Swiping your credit card the right way can do more than just help you shop, it can make your finances stronger. With features like EMIs, you can split big expenses into smaller, more manageable payments. Reward points add extra value to your everyday purchases, letting you unlock discounts, gifts or cashback. But this doesn't matter if you miss your payments. Paying on time helps you avoid extra charges and keeps your credit score in good shape. So, stay smart, stay on track and let your credit card work for you- not the other way around.

This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.