Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • 8 Tips to Manage Your Credit Card During the Covid-19 Pandemic

    A credit card is a brilliant financial product to avail, provided you are able to use it smartly and pay the outstanding credit card bills on time. However, due to the outbreak of Covid-19 in India, it is possible that like many others, your finances may have taken a hit due to which managing your card may have become difficult.

    However, there are certain tips that you can implement in order to ensure that you are able to manage your credit card smartly during Covid-19.

    • Monitor your credit card statements regularly:

      You must monitor your credit card statements regularly so that you can find where you can avoid using your card.

    • Use only one credit card:

      While there is no problem in having multiple credit cards, having only one card is more feasible. Having one credit card means that you will have to pay the annual fee for only one card. If you own multiple credit cards, you can get all but one of them discontinued temporarily and use the one with preferably the lowest annual fee so that you are able to track your spending easily.

    • Pay your bills online:

      It is preferable you pay your credit card bills online not only because it helps you practice social distancing but also because it is easy and hassle-free. You must keep in mind that if you choose to pay your credit card bills through cheque or demand draft, then you may have to pay extra charges to the bank. You can set an autopay feature, where the amount is deducted from your account on the due date ensuring you are paying your bill on time.

    • Use the EMI transaction facility:

      Some credit cards give you the option of converting your spends into EMI transactions which during these troubling times can be an easier option for you. Under this facility, instead of paying the whole outstanding amount, you can pay it as Equated Monthly Installments (EMIs) allowing you to manage your finances in a better manner.

    • Paying minimum dues only if unavoidable:

      You should opt to pay the minimum amount only if it is absolutely unavoidable. However, you must know that the bank will charge an interest on your remaining outstanding amount so it is usually better to pay your credit card outstanding amount in full.

    • Avoid withdrawing cash from ATMs:

      You have the option of using your credit card to withdraw cash from ATMs in India. However, this is something you must clearly avoid because any amount that you withdraw from ATMs using your credit card will attract a high interest rate. For example, if you withdraw Rs.100, the bank will charge an interest on the amount withdrawn. Hence, use your card for online or Point of Sale (PoS) transactions only.

    • Use your reward points:

      Most credit cards offer you reward points whenever you make any transaction. During such difficult times, redeeming your reward points is a brilliant option since these points are helpful in decreasing your outstanding amount. You must use your card smartly and pay the amount in full to earn these reward points.

    • Set a transaction limit:

      You must set a limit to which you can spend using your credit card. Never use the maximum available limit on your card as it might be extremely difficult to repay the amount on time. Setting a transaction limit helps you manage your spends and ensures you stay away from unnecessary expenses.


    These are some tips you can follow to manage your credit card expenses in a better way. You must use your it not only in a smart manner, but also judiciously. It goes without saying that you must always look to clear your credit card debt in full on a timely basis so your credit scores do not take a hit and you can keep enjoying its benefits without too much worry.

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