What's the most optimal way to use a credit card?
Use credit card well and you will have a good credit score, abuse it and you may find yourself black marked.
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.