The main reason that I like to use a credit card is to accumulate points that I can earn on the spendings and then redeem those points either for gift vouchers or against cash. I always make sure to use my credit card only to the limit of what money I have in my account. I do not use it in a manner that I do not have money so that I can use the card because that can become a headache on paying off the bills.
My sole purpose is to accumulate points. Last time I redeemed all my points which I had accumulated for quite a few years, I was able to buy a laptop, and I gifted it to my son on his birthday. But then the bank changed the format, now the points lapse after a certain period of time, so long term accumulation is not possible. Now I redeem it once a year against cash, which is also very good. Plus there is a good credit period also for paying the bills.
This one of my banker friend had suggested to me, that use your credit card for all your transactions that you would generally pay through your debit card, and then pay the bill just 2 or 3 days before the payment due date. This gives multiple benefits, one is you earn reward points, other is you get credit period to pay the bill, and for that period you can earn some interest on the money lying in your account. It is nominal, but on regular use, it makes a difference. I kind of liked the idea. There are some months when my expense is high, especially when it is birthday and festival times, which is ideally the period from October to Jan. So these little tricks helps me get some benefits. Also when I use credit card on certain merchandise and online shopping, there are cash back offers. So it's like little little of everything from the point of view of benefitting.
Yes, but credit card spending can be very luring, so this I make sure that the spending is never more then what money I have in my bank account. I never want to land up in a situation where I am being haunted to pay the bills. If used in the right manner these services can be beneficial.
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