Here’s how you can improve your finances by using credit in early 20s

Now that you have turned 20 and your teenage years are over, maybe it is time to get familiar with some money matters. Smart money moves taken in your early 20s can significantly impact your future financial life. After all, making an early start in getting acclimatized with the concept of savings gives you the head start to take on the world much more comfortably.

And, the best part is that you do not have to sacrifice your current lifestyle nor do you have to earn a fat salary to end up with money bags in your later years. Here’s one simple financial hack that you may incorporate into your daily life – Avoid using cash while buying stuff either online or offline and pay preferably using credit cards.

Embrace Credit Card

Whether you are dining out, buying apparels or electronic gadgets, shopping online, paying utility bills or even making recharges, keep doing that. The only upgrade to your shopping experience that you need to make is to keep using your credit card while transacting.

The next big step is to get an out-of-the world credit card experience and to use credit cards like a Pro – for which there’s no place other than CRED.

CRED, a platform that brings all your credit card related activities under one roof, is what most millennials have been aspiring for. In a nutshell, CRED guides you to remain debt-free, develop a good credit score and most importantly, gives you a rewarding experience in your daily shopping life.

Pay on time, reap the rewards

As a credit card user, it’s important to pay the entire outstanding amount as per the card statement on time. Make sure to clear all dues within the credit card due date to keep your credit profile healthy, and to avoid paying late payment fee, interest charges etc.

On top of all this, there’s another big advantage of clearing the credit card dues on time. Your timely credit card payments get rewarded too!CRED, a members only credit card bill payment platform, rewards its users for clearing their credit card bills on time. Simply put, once you become a CRED member for free, make credit card payments on their platform and get rewards for the same.

But, even while you have cash, is it better to use a credit card to transact? Undoubtedly, cash is great but credit is better. Yes, there are several inherent benefits of using credit cards. Here a few of the important ones:

Helps in building a good credit profile: Your first brush with credit cards can come handy in building a decent credit profile. By using credit cards prudently, your credit score or credit history will help you get reduced rate of interest on home loans and other loans when required at later stages of life. Once a CRED member, keeping a tab on your credit score is only a click away.

Helps in enhancing financial literacy: From managing household budgets, spending within limits to understanding the fallouts of debt, usage of credit cards could be the first step in learning the ropes of financial literacy in a big way. There are timely reminders from CRED to help you not miss the due date and become financially disciplined.

Rewards and cashback: Perhaps the biggest reason that keeps the users of credit cards gung-ho about using them is the rewards and cashback they accumulate. Spend now, pay later within the due date and still earn reward points and cash back – what more can credit card users ask for? The reward points accumulated over time can be redeemed to buy new stuff or even to pay your credit card bill. With CRED, you get rewarded more! There are exclusive rewards and experiences from premier brands for clearing your credit card bills.

Smart ways to maximize benefits

Combine rewards from the same provider: If you hold more than one type of credit card from the same provider, it’s better to combine the reward points to boost its value.

Opt for no-cost EMIs: Many credit cards provide the option to make purchases on no-cost EMI. Opting for this helps you save cash and put it to good use.

For better credit score limit card usage up to 50%: In order to keep a healthy credit score, better to stick to limited usage of your card limit. An utilization ratio of about 50 per cent of your card limit is considered to be on the right side for developing a decent credit profile.

Multiple card experience: There are cards catering to specific needs – from lifestyle, entertainment, travel, groceries, dining out, business related and more. Choose the one that suits your spending habits and once you get comfortable using one or two cards, you can graduate to using a few others too. For example, one for travel, one for groceries and one for e-commerce.

CRED Advantage

As a CRED member, you can manage multiple credit cards on a single portal. And, there’s a lot more in making your financial life simpler and smarter.

• Seamless bill payment experience through modes like UPI, net banking and debit cards
• Timely credit card bill payment reminders
• Automate your credit card bill payments
• Expose hidden charges on your credit card with CRED protect
• Get real-time alerts on duplicate transactions on your credit card
• Keep a real time check on your credit score

Using credit cards is a healthy exercise till the time you do not incur any interest charges on your statement by clearing the dues on time. There are rewards not only on your spendings but also on making credit card payments on time with CRED.

Ask any of the seniors around you for that single advice that they have to offer to youngsters and it will probably be this – The financial choices you make today and the habit of savings that you inculcate now, will go a long way in shaping your financial health in the later years.

The most simple and doable hack to make the most out of your credit card is to get a CRED membership, now.The above article is sponsored by CRED.