Credit cards have become an integral part of modern financial transactions, offering convenience, flexibility, and a range of benefits to users. According to a report by Financial Express, credit card spends have reached an all time high of Rs. 1.8 trillion in October with an increase of 38.3% on yearly basis. The rise in the spend has been noted mainly because of the festive season.
“The 38.3% y-o-y growth witnessed in October was the highest in nine months. Spends rose 25.4% month-on-month (m-o-m), which is the highest in two years,” the report stated. It further informed that spend per card rose nearly 16% y-o-y to an all-time high of Rs. 18,898 in October. It rose 23.2% month-on-month (m-o-m).
“Specifically, spends on HDFC Bank credit cards rose 20.3% y-o-y to Rs 45,296 crore. SBI Card spends rose nearly 52% y-o-y to Rs 35,459 crore. Axis Bank witnessed the highest annual growth in credit card spends. It rose 92% y-o-y to Rs 21,767 crore in October,” the report added.
Seeing the rise in the usage of credit cards, now it can also be linked with UPI. Have you heard of credit cards on UPI? RuPay Credit Cards on UPI provide a seamless, digitally enabled credit card lifecycle experience to the users, according to NPCI. Users can now scan any UPI QR Code and pay via Rupay Credit Card. Fintech pioneer Paytm has introduced the same. Paytm users can link their Rupay Credit Card to their Paytm App and use it like a bank account.
Notably, as consumers navigate the world of credit, understanding how to manage credit card spend wisely is crucial for financial well-being. Here are the strategies one can follow for responsible credit card usage and maximizing the benefits associated with credit card spend.
Budgeting for credit card spend: One of the fundamental aspects of responsible credit card use is budgeting. Before making purchases with a credit card, you should have a clear understanding of their monthly income, expenses, and financial goals. Establishing a budget helps prevent overspending and ensures that credit card purchases align with one’s overall financial plan.
Tracking expenses: Regularly monitoring credit card transactions is essential for staying on top of spending habits. Many credit card providers offer online platforms or mobile apps that allow users to track their expenses in real-time.
Utilizing rewards and cash back: Credit cards often come with rewards programs, cash back incentives, or loyalty points. Leveraging these benefits can turn everyday expenses into opportunities for savings.
Taking advantage of interest-free periods: Many credit cards offer an interest-free period between the purchase date and the billing due date. By paying the full statement balance within this period, cardholders can avoid accruing interest charges.
Credit cards, when used responsibly, can be powerful financial tools that offer convenience, security, and valuable perks.