smart credit card

Are You a Smart Credit Card User? – Lets do a reality check

Credit cards are similar to weapons, you can start a war or make peace by using it, someone said, credit card and marriage is the same, people who don’t have want to have it and people who do have want to come out of it, it’s true for abusers, but contrary to popular belief, responsible and smart use of credit cards can bring you many benefits, let’s look at few characteristics of a smart credit card user.

Related: Credit cards – The good and bad

A smart credit card user understands the basics of credit cards

Understanding the basic criteria of the credit card is an important characteristic of a smart user, knowing what is the start date and end date of the statement period, knowing what is the credit period and knowing what is the payment due date is very important and you can save a ton when you know it right. Also, a smart user knows the interest rate and fee structure of the card.

A smart user knows the benefit of having multiple credit cards

While the abusers are afraid to have multiple cards, the smart users take maximum advantage out of multiple cards, they know which card to use for travel, shopping, fuel etc. compare credit cards and understand the best credit cards for your needs.

smart credit card user

A Smart user pays the bills on time

A smart user never goes for the minimum payment, they know the credit card debt is crazy expensive and they use the credit card to make money and not for loose money. For example, a smart user effectively utilizes the credit period and keeps the money in the bank to earn interest thus your expenses not immediately debited from your account, but he pays the credit card bill in full when the due date arrives.

A smart user profit from the card

A smart user knows the offers and rewards associated with the credit cards, effective credit card usage may bring you lots of discounts, cash back and offers, it will cover the annual fee and joining fee cost and the surplus is profit.

Example, assume your annual fee and joining fee is LKR 5000, most of the credit card offers up to 50% travel and up to 20% shopping discounts, using your credit card to book your favourite hotel stay alone makes a profit against your cards fee.

A smart user build his credit score using the credit card

Credit card issuing companies will to report your payment activity to the Credit information bureau (CRIB) and responsible usage of credit card will reflect on your report, it will help build your credit score.

Related: 08 Personal Finance Mistakes and How to fix it


There are many more smart usage benefits garnered from a credit card, credit cards are for responsible, disciplined and smart people, who can remain conscious of their ability to pay the monthly bill by the due date. For some people, credit cards can be destructive. But as long as you can use cards wisely, they’ll serve you well. If you use a credit card cleverly then it’s possible to borrow for no cost, get extra protection on your purchases and even earn cash back or rewards for, good luck spending on your card.

What else makes you a smart user? Let us know by commenting

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