Important tips for using your credit card responsibly are as follows: 1) understand the card terms 2) know when and how to use your card 3) pay your dues in full 4) pay your dues on time 5) plan and time your purchases 6) Keep a low credit utilization ratio 7) enjoy the rewards!

Ever since it first came into being, the credit card has revolutionised the way people transact, allowing cardholders to borrow funds on a short-term basis and make cashless payments for goods and services.

Today, the statement that your credit card can be a really helpful financial tool ‘if used responsibly’ has acquired such ubiquity, it has almost become an adage for credit card-users to swear by.

Contrary to popular opinion, using your credit card prudently entails much more than making timely repayments. It’s also about maximising benefits and improving your credit profile.

Whether you are an existing credit card user or plan to apply for one, here are 7 tips for using your credit card in the most beneficial, responsible way possible.

1. Understand the Card Agreement & Terms

When you begin using a new credit card, make sure to carefully go through the credit card customer information in the agreement. Keep an eye out for information regarding your billing cycle, fees, due dates, and interest rates. This way, you’ll be better prepared to use your credit card wisely and responsibly.

2. Know When & How to Use the Credit Card

There are so many uses of a credit card. It is easy to get tempted into making purchases on impulse. But using your card ‘responsibly’ means steering clear of frivolous purchases and using your card for needs, not wants. If you are using it to buy big-ticket items – such as a smart T.V. or laptop – you could always consider the option of paying back via credit card EMIs so as to avoid a financial strain.

3. Pay your Outstanding Dues in Full

Making the minimum payment on your credit card helps you avoid penalties and is better than paying nothing at all – but it’s not enough. You should ideally pay the outstanding balance in full. This will help you avoid the heavy interest rates and keep your credit score high. Besides, you’ll always be free of the stress of carrying a balance.

4. Make Timely Repayments

Making timely repayments – before the due date – on your credit card is just as important as repaying in full. Not only is your payment history an important factor in determining your credit score, missed or late credit card payments will lead you to incur late payment fees and interest charges – a double whammy you definitely want to avoid.

5. Plan your Purchases

Every credit card has its own billing cycle. Planning and timing your purchases while keeping the bill generation date of your credit card in mind can greatly help you maximise your interest-free period. For instance, if you have an IndusInd Bank credit card and you make a purchase immediately after your credit card bill is generated, you can actually enjoy up to 50 interest-free days. However, the interest-free period is only applicable if the total amount due has been paid in full.

6. Maintain a Low Credit Utilization Ratio

The credit utilization ratio refers to the percentage of the total available credit you are using. Ideally, the outstanding balance on your credit card should always be lower than 30% of your credit limit. This means, if your limit is INR 1 lakh, you should keep your balance under INR 30,000. This will ensure a perpetually healthy credit score.

7. Enjoy the Rewards

For most people, the best part about having a credit card is the world of discounts and privileges it opens the door to. An IndusInd Bank credit card, for instance, earns reward points for you on every transaction and fetches bonus reward points on achieving milestone spends. Additionally, the reward points on your IndusInd Bank credit card do not expire, giving you the freedom to use them whenever you wish. Other benefits include complimentary lounge access at airports, year-round discounts on eating out, movie tickets, grocery shopping and plenty more!

Take your Pick from a Range of Credit Cards!

Different people have different uses of a credit card. That’s precisely why IndusInd Bank offers a diverse array of credit cards, each with a unique set of features tailored to meet varying lifestyle needs and preferences. From a range of credit cards with zero joining fees and zero annual fees to a host of cards with premium lifestyle privileges – IndusInd Bank has something in store for everyone.

Add to this a 100% paperless, 3-step online application process and access to a world of exclusive memberships, discounts and rewards. Apply for an IndusInd Bank credit card now!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. 

Summary: Using a bike for your daily needs is essential, but paying hefty EMI amounts for your bike loan need not be. You can conveniently reduce your EMIs with better planning such as, applying for a loan amount you can afford, opting for a convenient tenure, prepaying your loan, or using an EMI calculator to determine your monthly outflow. Read more here.

As transportation plays a vital role in both work and daily life, owning a personal vehicle has become a necessity. While cars may be expensive, bikes are generally affordable to most. And with easy EMIs that many lenders offer you on two-wheeler loans, purchasing a bike is no longer a challenging task.

However, there may be times when the EMI might be too much for you, and you’d like to reduce it. Today, we tell you how you can lower your bike EMI without having to break a sweat! 

Steps to Reduce Your EMI for Your Bike Loan

1. Know How Much You Can Afford 

This might be a commonly covered step, but it can be the most important one. Because you need to pay a relatively significant amount to own your bike, knowing how much you need to spend can help. For instance, if you plan to buy a bike costing Rs 80,000, then you should determine the minimum and maximum loan amount you can afford.

This can tell you how much of a down payment you can make and what you can take as a loan. So if you choose to make a bigger down payment initially, you’ll need to apply for a lower loan amount and fetch much lesser bike loan interest rates, which will, in turn, reduce your EMI. 

2. Use an EMI Calculator

Before you take a bike loan, you can get a good understanding of how much you need to pay using an EMI calculator. For instance, you may want to choose between various lenders offering different amounts, tenures and interest rates. With an EMI calculator, you can see how much your bike loan EMI will change depending on the factors and pick the right loan depending on your affordability.

3. Opt for an Extended Repayment Schedule

A short-term bike loan might attract a higher EMI. Inversely, when your tenure is longer, you’ll be able to reduce your EMI substantially. However, you must also keep the bike loan interest rates in mind when opting for a longer term. They tend to increase when the tenure is more extended, even if the overall EMI you pay each month is less.

4. Consider Prepayment of the Loan

Specific lenders may offer the option of prepaying an existing bike loan after a period of time. When you have excess funds that you can spare, you can use that money to pay off a massive chunk of your loan. This will not only reduce the total amount of the outstanding principal but will, consequently, reduce your EMI too. 

5. Choose a Lender with an Existing Relationship

If you have a reliablet working relationship with your bank, this relationship can help you get loans easily too. For example, In the case of a bike loan, you can request your lender to see if you can get good bike loan interest rates, as you’ve been their regular customer for a long time. 

You can easily reduce your bike EMI with lesser interest rates and save more money. Making use of your existing relationships is a sure way to buy your bike without making any significant expenses.

Buying your next bike

With all these steps in mind, you can now be more confident in purchasing a bike. However, as two-wheeler loans are becoming more commonplace, you would still need a trustable source to approach. At IndusInd Bank, you can avail of bike loans that match your expectations. With attractive interest rates, generous tenures, and easy documentation processes, you can quickly get a loan to purchase your bike today.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.