A credit card is one of the essential financial tools that a majority of people in India have, and many of them are applying for it daily. Many people seek many purposes out of a credit card.
Some take it as an easy mode to spend, while on the other hand, some want to swipe and buy anything, anywhere and anytime. For some, it’s also convenience as people don’t need to carry cash while for some, the credit card reward points matter.
Nonetheless, the plastic money in your wallet could also be a treasure trove if you are a bit smart. A credit card can be a regular source of free money if you are a disciplined borrower. Let’s go through this post and know more.
You get free money on credit card for up to 50 days
Nowadays, the rate of interest on borrowing money is higher, but it is not the same with a credit card. It is because your credit card can quickly help you avail the interest-free credit card limit for up to 50 days. You also get an extra 15-20 days after the credit card statement is generated to pay the bill. If you pay the bill on time, you won’t need to bother about the interest.
Hence, if you can time your purchases correctly and buy at the start of your billing cycle, the charges will show in next month. As a result, you will be able to get up to 50-days of interest-free credit without issues. This plan can work best for you if you have 2-3 credit cards, each with a different billing cycle. It is possible to get the billing cycle changed to make the most of the interest-free credit. The only thing that a credit card owner should mind is that it is possible only when they pay the bill in full by the due date.
However, if you roll over the credit by paying the minimum balance due, then you may be charged 2-3% on the unpaid amount. In this case, you don’t get any interest-free period on new purchases if your billing cycle begins with a balance. If you make around Rs. 20,000 worth purchases and avail a 30-days free credit in the billing cycle, you can gain up to Rs.1600 in a year. It means that you get Rs.1600 free.
Use your credit card reward points to buy
Shopping with your credit card for all your purchases could be rewarding. It is because every time you use a credit card, you also earn some credit card reward points. A majority of credit card companies offer you 1 reward points for spending Rs.100 on the credit card. Some cards may also give up to 5 credit card reward points on every Rs.100 spent. The final number of rewards for every Rs.100 spent depends on your lender to lender and the types of credit card that you own. However, to maximize your credit card, you should apply for one that could match your spending pattern.
For example – if you fly frequently, you may find credit card co-branded by leading airlines useful to rake up air miles. You can use the credit card reward points gained for free tickets in the future. The benefits of such cards rightly struck off the annual charges on them if you use the reward points correctly for free tickets. Nowadays, you may find many types of credit card in India with reward points especially made to complement your needs and spending style. Thus, it is vital to compare all such offers and pick up those best suits your needs.
Nonetheless, you should ensure to go through the terms and conditions of the credit card companies on reward points. It is because, in some basic or entry-level credit cards, rewards come with an expiry date. You may lose them, or they may lapse if you don’t use them within 12-18 months. However, lenders pamper high-end users with reward points that you can use without worrying about the lapse. But, your greed to lap up more credit card reward points should not lead to a debt trap. You should go on a shopping spree without any goals just to earn some rewards.
Lenders such as Bajaj Finserv RBL Bank SuperCard come with reward points of 20,000 as a welcome bonus on joining. You can use the points later to grab incredible deals and discounts.
If you wish to apply for credit card to earn some free money on credit card, then lenders such as the Bajaj Finserv come with pre-approved deals on many financial products. You can get it on a credit card, personal loan, EMI finance, home loan and more. It is to help you go through the loan formalities faster and hassle-free.
All that you need to share is your basic details such as your name and mobile number to check out your pre-approved loan offers.
I hope this article give you some idea on how to make free money on credit card. Read this article for going cashless.