Credit card usage these days could be the key to your future borrowing ability—use it well and you will have a good credit score, abuse it and you may find yourself black marked for no one else lending you money.

The most optimal way to use a credit card is to make the high value purchases just after the billing date, so that you enjoy the long free credit period. There are a few other factors that you should consider to make the most of your credit card.

No rollover: Do not rollover the dues and pay them fully and in time

Within limits: Spend within your credit limits and within your repaying capacity in each billing cycle.

Multiple cards: A smart move is to use two cards and have their billing cycles wide apart so that you can time your high-value purchases to be at the beginning of the respective card’s billing cycle. This way you can time and make high-value transactions and, at the same time, enjoy a long and free credit period.

Fee waiver: If you are a frequent user and regular payer of dues, speak to your card issue to waive of any annual fee or charges in lieu of being a prudent card user.

olmdesk@outlookindia.com