Recently Got a New Credit Card? All You Need to Know to Start Using It after SBI Credit Card Pin Generation

Admitting that you’re uncomfortable in applying or even using a credit card is common for many people. That is exactly why these days, knowing how to use credit cards sensibly is essential to avoiding debt traps and turn them into a boon.

As soon as you get your new card which has very low charges and SBI credit card interest rate, here are a few ways to ensure that you use your credit card responsibly.

1. Take advantage of the interest-free period: The interest-free period is a feature of all credit cards. This period, which begins on the first day of a billing cycle, may extend for a total of 22 or 52 days. After you set up SBI credit card pin generation, you won’t be charged interest on any purchases you make. Assume your credit card has a fifty-day interest-free period. and that you make a purchase on the first day of the billing cycle. This time, the money is going to be accessible interest-free for 49 days. You won’t be charged interest if you return the funds by the end of the 49th day
2. Link your credit card to UPI: Ever since the RBI approved UPI network linking, many people have been wondering how to use a credit card for UPI payments. It just takes a few minutes to complete and is an easy process to follow. All you have to do is link your credit card and UPI handle using a payment app once you do SBI credit card pin generation. With UPI, you can send money instantly to any UPI ID in India. It could be useful in an emergency situation where you don’t have enough cash to cover basic expenses.
3. Pay interest on large purchases you make: Have you ever desired a costly item but been unable to afford it? Applications for credit cards are accessible. Once you are done with SBI credit card pin generation, you can set aside large expenses and divide them into manageable monthly no cost EMIs. It raises your purchasing power and decreases your financial burden.
4. Take out a credit card loan: Let’s face it: in certain situations, money really does rule. In the unlikely event that you ever run out of money, you can also use your credit card to make direct cash withdrawals from an ATM. When using this feature, exercise caution to avoid making it a habit. Credit card companies often charge you a cash withdrawal fee each time you use your card to withdraw cash from an ATM. Moreover, interest may be assessed on the amount withdrew between the repayment and withdrawal dates.
5. Never use your entire credit limit: This advice is essential to any credit card usage guide! Each credit card has a pre-established credit limit that you can use to make purchases. Your financial situation may deteriorate if you use up all or a sizable portion of your credit limit. If you use more than 30 to 40 percent of your credit limit overall, your credit score may suffer.
6. Apply for a loan quickly with your credit card: You can apply for loans with flexible terms if you own a credit card. Almost all credit card companies offer loans up to 80% of the credit limit these days.
7. Go contactless: All card issuers currently offer contactless credit cards. These cards have an integrated NFC (Near Field Communication) chip, which allows you to use them to tap Point of Sale (POS) terminals to make NFC-compatible payments. Remember that contactless payments do not require you to enter your PIN. As such, it is advised that you exercise caution when making use of this feature. By logging into your credit card account, you can also disable this option.
8. Payment on Time: Make sure you make timely and complete payments on all of your bills. You will never hear better credit card advice than this. By the due date, all credit card debt must be settled. If you can’t pay your bills by the due date, you might face severe consequences like late fines.

Similarly, failure to pay your bills in full may result in the loss of the interest-free period. Consequently, all of your purchases would come with interest, which would greatly increase the amount of debt you have.

9. Always make on-time payments: A single late payment can reflect debt on your record and lower your credit score, even though it might not seem like much after a year of on-time payments. Your payment history is significant because it accounts for 35% of your credit score, which is a figure that banks and other lenders use to determine your credit risk. Late payments often get out of control; cardholders pay outrageous SBI credit card interest rate and high late fees; moreover, as debt accumulates, their credit score declines. If you set up auto pay or make phone reminders, you might be able to avoid missing payments.
10. Consistently Examine Your Statement: Your credit card company will send you a statement each month that lists all of the purchases you made during the previous payment period. Even if you have scheduled your monthly payment, it is imperative that you read your billing statement. Check your statement to make sure there are no errors or unauthorised charges. Contact your credit card company as soon as you become aware of any of these so that they can be fixed.

It is something you should never be afraid to do: use your credit card. It will not help you or improve your credit score. Because credit card issuers and lenders are interested in your credit usage, use your credit card for purchases. Keeping it in active status will also keep your issuer from cancelling it. It’s important to maximise the benefits of your credit card and make sure that your credit utilisation rate is below 30%.

To sum up

You should be ready to use your credit card to its fullest extent as soon as you complete SBI credit card pin generation. Use your card’s features to their fullest potential for EMI plans, contactless transactions, interest-free periods, and other purposes.