Credit card tips and hacks for new parents

Most Indian couples face immense financial challenges in the initial years of parenthood. This results from the significant expenses that an infant’s care can add to your monthly liabilities. At such a time, credit cards can offer financial support, enabling families to avoid financial burdens. With credit card reward points, along with additional features, such parents can accelerate savings.

Still, uncontrolled expenditures made with such cards can increase your financial stress, instead of alleviating it. The following tips can help maximize benefits from credit cards at such a stage of life, preventing the accumulation of excessive monetary burden.

Pay credit card bills on time

While the perk of earning credit card reward points might compel you to spend more, the best way to reduce the additional financial burden from credit cards is to service outstanding dues on time. While you can get away with paying only the minimum amount due on a month’s credit card statement, doing so will simply delay the current month’s outstanding debt to the next month’s bills. 

Thus, a better alternative would be to clear credit card dues in full after every month. Doing so not only ensures minimal liabilities but also improves the credit score of the cardholder. If you fail to repay the dues on time, credit card issuers will charge a significant interest on the outstanding sum with each day of delay.

Determine how much you can afford to spend

Credit cards work on the principle of short-term loans. Thus, when you expend using such a card, you also need to have a solid plan for repayment in place. Additionally, when availing a card, new parents should understand how much disposable income they have after funding all of their liabilities. This should be the maximum credit card expenses in a single month.

As a rule, cardholders should only utilize between 30%-40% of the available credit limit in a month. For example, if the credit limit is Rs.2 lakh, users should avoid using more than Rs.80000 as expenses in one month. Understanding how to use a credit card wisely will help new parents limit financial burdens.

Maximize reward point earnings

Credit card reward points are nothing but avenues to increase savings when expending through such tools. You earn reward points by spending at certain outlets or shopping for a particular item. After you accumulate a specific amount of these reward points, you can redeem them during further expenses.

If you do not know how to redeem credit card reward points, contact your card issuing company. Also, beware of the expiration date for your accumulated points. You can only avail of benefits from these points for a limited period. With enhanced savings through such points, new parents can channel more of their finances towards the welfare of the baby.

The best credit cards, such as the Bajaj Finserv RBL Bank SuperCard, offer increased opportunities to earn reward points. In fact, cardholders can look forward to up to Rs.55000 in annual savings from such rewards.

The financial institution also provides pre-approved offers to credit card, personal loan, and business loan consumers, ensuring a smooth and accelerated application process. You can check your pre-approved offer by providing just a few essential details, including your full name and phone number.

New parents often find themselves in a precarious position when it comes to their financial planning. At this stage, using a credit card responsibly can have major benefits. On the flipside, availing excessive credit without proper financial planning can create additional difficulties. Being aware of credit card reward points will enable such consumers to maximize cashbacks and savings.

Comparing the available cards on offer is essential, especially for individuals looking to contain their monthly financial liabilities. Such a comparison would also help choose the cheapest cards available, with affordable yearly charges. As a new parent, you must take each financial decision with substantial foresight and planning. Availing a credit card at such a stage can help you attain financial responsibility, ensuring welfare for the entire family. 

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