Every bank subscriber anticipates a better experience with the acquisition of a credit card. However, that is not the case. The credit card levies, high-interest charges, and poor customer relations render customers helpless, hoping for an all-inclusive fix.

Fortunately, there are smart ways you can utilize your credit card. Since this is an essential tool in your cash flow management, you can use it to build a strong credit history.

Check out ten ways to better utilise your credit card: 

  1. Pay your bills on time

If you have to stick to the holy grails of credit card usage, this is the most important. Don’t carry your balances forward. Have the habit of paying your bills either monthly or in full when in a position to do so. 

When you pay your dues without failing, no day shall you accrue any interest or fee. Therefore, stick to this trick if you want to progress and have a good credit score.

  1. Have a clean credit card

It is never an offense to fail to pay your creditors on time. You can be in a fix, but once you can pay your credit, you can do it in full. Develop the habit of steadily reducing your loan.

However, do not be tempted by the credit card bonuses and pile up your debt load. If you have an existing loan, focus on repaying it in full before getting into another loan or opening a new account.

Tip: If you’re a spendthrift, don’t make further credit purchases while in a credit card debt. You can make your purchases with your debit card or pay in cash while you are clearing your debt.

  1. Utilise credit card rewards

Most credit card providers now offer a range of signing on offers and bonuses. Others offer rewards and frequent flyer programs. Once you accumulate the points, you can redeem them for rewards such as flights, upgrades, accommodation, technology, and even gift cards. If you’re good with your finances, then make purchases with your credit card to build these points.

The most important thing to remember is rewards points are an incentive – do not be lured into spending more on items for the points. 

  1. Negotiate for lower rates

No bank wishes to see a loyal customer with a reputable credit score walk away. When you are almost closing your credit card, consider negotiating with your bank.

 You can contact the customer care and request for negotiation of competitive interest rates or annual fees before you close your account and move to another bank.

  1. Compare credit cards for best deals

Credit cards differ in features. So, before settling on one card, you should have compared the existing options to land on the best card.

You can match from different providers to find the card with cheaper interest rate or annual fee as well as competitive features like bonuses or rewards. After carrying out your due diligence, you can settle on the most suitable credit card of your choice.

  1. Look for hidden fees

By law, banks are not allowed to have hidden charges. However, the legal language they use on the back of the application form is usually not well understood by ordinary customers.

Therefore, to get started, you should ask around for the meaning of the terminologies when applying for the card. Ask on the processing fee, transaction fee, late repayment fees, and many more fees that will affect your card.

  1. Limit the number of your cards

You should watch your financial habits. Although, you may be having multiple cards for different uses, mostly having various cards can plunge you into more debt plus damage your credit score rating. 

So, have several cards that you can manage well without affecting your score as well as your financial habit.

  1. Debt consolidation

If you’re struggling to manage your credit card debt, it may be wise to consolidate your debt into one loan. Credit cards typically have higher interest rates so you can save money and better manage your cashflow. 

  1. Emergency Credit Card

In as much as you won’t be using this card for everyday transactions, it will help you a lot during an emergency. For your emergency card, consider one with a low annual rate or 0% interest fee.

  1. Check your credit report

As a diligent loanee, it is prudent to check on your credit score. Having an eye on your report will help you correct costly errors that can poke a hole in your wallet.


Credit card companies are in business; their main agenda is to make money. It is essential to know that you are a party in this, so do not follow the rules blindly. 

Most of the time, the laws are inclined to the bank’s advantage. Therefore, be knowledgeable and take advantage of rewards and bonuses offered by the bank or company. 

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