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credit cards

How to use a Credit Card?

How to use a Credit Card

How to use a Credit Card?

Credit cards are an important financial instrument that must always be used wisely. Credit cards offer flexibility and convenience. However, careless use can often lead to unnecessary financial liabilities and debt. Hence, in this article, we will guide you on how you can use a credit card responsibly.

10 Helpful Tips on How to Use you Credit Card Responsibly

  1. Know Your Credit Card Terms and Conditions: It is advisable to thoroughly read and understand all the terms and conditions before using your credit card. You must know about the card fees and charges, like the annual fee, joining fee, the interest penalty charges, and so on.
  2. Create a Budget: It is advisable to create a monthly budget that helps you keep track of your income and expenses. Make sure that your credit card usage is in accordance with the budget you have set. You must also avoid unnecessary spending with the card to attract credit debt.
  3. Pay Balance in Full: You must always aim to make the full payment on your credit card rather than making a partial payment. This will help you improve your credit score and also reduce the interest that would be levied otherwise.
  4. Duly Check Credit Card Statement: You must regularly check your monthly credit card statement to rule out any unauthorised or fraudulent transactions. Immediately report these transactions to the bank, if any.
  5. Be Mindful of Credit Usage: It is advisable to keep track of your credit usage so that you don’t overspend against the credit limit. Going over the credit limit will negatively harm your credit (cibil) score if you fail to make the payment on time.
  6. Make Payment Before Due Date: Always make sure to make your credit card payment before the due date, as this will improve your credit score. Late payments will not only attract late penalty fees but also harm your credit score.
  7. Make Payments at Authorized Merchants: Be vigilant about making payments via unauthorised merchants or fraudulent websites to avoid any kind of scam. Making payments through authorised merchants and websites will eliminate the risk of misusing your credit card.
  8. Redeem Cashback/Reward Points: If your credit card offers you cashback rewards or points, make sure to use them wisely. You can redeem these points to avail of discount offers on hotel stays, travel tickets, shopping, and other categories.
  9. Choose Right Credit Card: Make sure to choose a credit card that is in alignment with your needs or preference. For instance, if you are a frequent traveller, it is advisable to opt for a travel credit card so you can maximise travel discounts and other benefits.
  10. Seek Professional Guidance: In case you are struggling with credit card debt, don’t hesitate to seek professional financial advice. Credit counselling services can provide guidance on creating an ideal financial plan for you.

Conclusion

It is advisable to always be vigilant and prompt when it comes to credit card spending and making payments. By following these guidelines, you can maximise the benefits offered by a credit card while also mitigating its potential risks.

Author Bio

This article is written by Team InsuranceLiya.com, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.

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Health Insurance

Does Health Insurance Really Help?

Does Health Insurance Really Help?

Does Health Insurance Really Help?

In today’s time, the question of whether having health insurance really helps in providing substantial financial help is a matter of significant debate. Well, keeping in mind the rampant cost of living and the even faster moving health care inflation in India, let us tell you how having a health insurance policy can be beneficial.

Safeguarding Against Medical Inflation

Medical inflation in India has been on the rise over the course of years. As per reports, medical inflation in India is at 14% as of 2022, making medical inflation in India the highest among other Asian countries. With the increase in technological advancement and demand for healthcare services, the cost of healthcare treatments will also increase, making it more expensive to avail  quality medical treatment.

Medical expenses like doctor’s fees, medicines, diagnostic tests, and so on can financially burden you if you are not prepared. Having a health insurance plan with sufficient coverage can safeguard you financially. Just by paying a health insurance premium every year, you can mitigate these financial risks while also getting the best medical treatment when needed.

Safeguards Your Family

To ensure that you and your family members get the best medical treatment available, it is imperative to have a health policy with sufficient coverage. Major illnesses like cancer and stroke can destabilize your finances. Having health insurance with sufficient coverage can provide the best treatment for you and your family members. Moreover, a high coverage plans also provide with a wider choice of hospitals, healthcare facilities, and so on.

Financial Security

With many health insurance companies now offering cashless facilities that allow you to opt for medical treatments without touching your pocket. A right health policy will financially protect you and your loved ones from medical contingencies. It is advisable to check the benefits, coverage scope, and terms of the policy before purchasing. Make sure the health plan is in alignment with the medical and healthcare requirements of you and your family.

Peace of Mind

Knowing that you are covered and protected against life’s uncertainties brings a sense of security beyond monetary value. This immensely  contributes to the mental, emotional, and physical well-being of you and your dear ones.

Accessibility of Quality Healthcare

Having health insurance ensures that you and your loved ones can get the required medical treatment without facing any obstacles. It ensures that the insured can avail of timely medical treatment irrespective of their financial situation.

Promotes Healthy Lifestyle

Health insurance helps you stay healthy by covering the costs of regular check-ups, consultations, and vaccinations. This means you can catch potential health issues early and prevent any kind of sickness.

Conclusion

Having health insurance is like a protective shield for your well being. It helps with money when unexpected health issues come up and encourages you to stay healthy.  Having health insurance ensures that you and your loved ones can get the right medical care when required.

Author Bio

This article is written by Team InsuranceLiya.com, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.

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Health Insurance

At What Age Should One Take Health Insurance?

At What Age Should One Take Health Insurance?

At What Age Should One Take Health Insurance?

One of the crucial decisions in life is when should you invest in health insurance? It is important to invest in the right health insurance policy at an early age to make the most of its benefits. For many reasons, it is best to invest in health insurance between the ages of 20 and 30. In this article, let us tell you why it is advisable to take health insurance at a young age.

Reasons to Buy Health Insurance at a Young Age (Before 30 Years)

1.) Affordable Premium

Health insurance premiums are significantly determined by the age of the individual. A person of young age is likely to pay a lower premium as compared to an elderly person. Younger individuals are likely to enjoy better health. Hence, health insurance companies consider them to have lower risks. It is advisable to buy a health policy at a younger age to benefit from these lower premium rates for an extended period, saving you money in the long run.

2.) Better Scope of Coverage


Opting for health insurance at a young age provides you with extensive coverage at an affordable premium. Unforeseen accidents and illnesses can happen at any age. Hence, having health insurance can financially protect you from these unseen events.

3.) Less Waiting Period


Health insurance companies usually have a waiting period of 32–48 months for specific illnesses. Buying a health plan at a younger age helps you surpass these waiting periods timely. This ensures that you have comprehensive coverage for most illnesses when in need.

4.) Continuous Coverage


Buying health insurance at a young age gives you another advantage, which is continuous coverage. Gaps in coverage can result in a limited blanket of coverage or higher premiums. Hence, investing in health insurance at a young age assures you peace of mind and protects your financial future.

5.) Financial Safety 


Medical treatments are expensive and financially draining in the event of an unforeseen event like an accident or critical illness. Health insurance acts as a financial blanket that protects you from the high costs of treatments. This allows you to focus on your health and recovery rather than worrying about medical expenses.

6.) No Medical Check-up Before Policy Issuance


Many health insurance companies offer health plans to individuals without the need for a medical examination. As it is less likely to suffer from any disorders or any life-threatening illnesses before turning 30, insurance companies do not ask for a medical examination for young people. However, individuals over 45 years of age may need to undergo medical tests.

7.) Peace of Mind


Knowing that you have health insurance coverage provides you with peace of mind. It alleviates the stress and anxiety associated with the financial burden of medical contingencies. Young individuals can focus on their education and careers rather than having to worry about the risks in hindsight.

8.) Flexibility in Choosing Health Plans


Young people have more options when selecting health insurance plans that offer extensive coverage. This allows customisation for healthcare needs, premium affordability, and so on.

9.) Lesser Waiting period for Maternity 

Many insurance policies cover maternity expenses after two years. Hence, purchasing medical insurance at a young age helps overcome this waiting period easily. Investing in health insurance sooner is also a smart decision for young couples.

Conclusion

Buying health insurance at a young age offers a multitude of benefits that extend beyond financial protection. Affordable premiums, coverage for unexpected events, and peace of mind are compelling reasons to consider investing in one early.

Investing in health insurance at a young age (between 20 and 30 years old) is not just a wise financial decision but a strategic investment in one’s long-term health.

Author Bio

This article is written by Team InsuranceLiya.com, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.

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