Opening a new credit card account can be an exciting yet a confusing experience. With the plastic card finally in your hands after days of waiting eagerly, you may be tempted to start swiping immediately. However, experts recommend taking prudent steps first to avoid pitfalls and maximise the card’s usefulness.
Activate the Credit Card
This step verifies your identity and authorises the card for transactions. An inactive card will be declined even if swiped, so take this vital first step.
Most banks in India today offer instant online activation through net banking or mobile app. Alternatively, you can call the toll-free customer care number on the back of your card and follow the authentication process.
Activation generally takes less than a minute through automated channels. If you’re activating additional or supplementary cards, follow the same process.
Verify Welcome Bonus and Offers
Most credit cards have exciting welcome bonuses and joining benefits to entice new customers. Popular offers include bonus reward points, cashback, discounts on fees, reduced interest rates, travel vouchers, and more.
However, sometimes, the actual bonus received may not match expectations. To avoid disappointment, proactively call your bank’s customer service after activation and verify the specifics of your welcome offer.
Key details to confirm include:
- Bonus amount and type (reward points, cashback, etc.)
- Minimum spending requirement
- Validity period and expiration date
- Eligibility terms and conditions
It’s best to iron out any discrepancies regarding welcome offers immediately before the promotional period ends. It ensures you get what you signed up for.
Understand Benefits and Partners
In addition to welcome perks, if you apply for a credit card, it comes loaded with a lot of benefits and privileges. These include dining discounts, buy-one-get-one movie tickets, airport lounge access, insurance covers, and more.
While it may seem tedious, take some time to read through the benefits guide or booklet provided with your new card. It will clarify associated features, partner brands, eligibility criteria, and how to avail of the different offers.
You can also call customer service for assistance in understanding and activating lifestyle privileges associated with the card. Knowing the benefits will help you use the card more effectively.
Set Up Account Management Features
Apart from perks, new credit card holders should also set up key account management features for seamless usage. Essential aspects to address include:
- Billing Cycle Date: Most banks allow adjusting your statement period closing date. Aligning this with your paycheck or other bill due dates helps manage cash flows.
- EMI Plans: Convert large purchases into affordable monthly instalments using banks’ EMI plans. Call customer care to understand applicable charges, interest rates and processes.
- E-Statements: Go paperless by opting for E-statements. It’s environmentally friendly and more secure than hard copies in your mailbox.
- Autopay: Set up standing instructions for automatically paying at least the minimum due amount from your linked bank account every billing cycle. It prevents missed payments and penalties.
- Online Access: Activate your credit card account on the bank’s portal or mobile app for quick access to statements, payments, offers and more.
Safeguard Against Fraud
In India, where digital payments are booming, the risk of credit card fraud and unauthorised transactions is a growing concern. As a new cardholder, you safeguard your financial well-being by taking proactive measures against potential risks.
Here are some insights into how you can minimise the chances of your card being misused:
Avoid Sharing Card Details
The cardinal rule is never to share your credit card details, such as your card number, CVV, or PIN, with anyone, especially over the phone or online. Scammers often pose as bank representatives, asking for sensitive information under various pretexts. Be extremely cautious, even if the caller seems to know some of your personal information. Always remember authentic bank officials will never ask for such details over the phone.
If you are making an online purchase, ensure that the website is secure and has a valid SSL certificate. You can identify secure websites by checking for ‘https://’ in the URL or a padlock symbol in the address bar. Also, try to use trusted payment gateways when available.
Check Statements Regularly and Report Discrepancies
Regularly monitoring your credit card statements via a credit card app is good financial practice and a crucial defence against fraud. It helps you spot any unauthorised or suspicious transactions promptly. Some inconsistencies might be due to a genuine mistake, but others could be a sign of fraud.
Immediately report any discrepancy to your bank’s customer service upon noticing it. The sooner you report, the quicker the bank can take action, which may include blocking the card to prevent further unauthorised transactions and initiating an investigation into the matter.
Conclusion
Beginning your journey as a new credit card holder can bring excitement and eagerness to start using the card. Yet, it’s essential to proceed with caution and make informed choices. It is advised to take prudent steps to avoid pitfalls and maximise your credit card’s potential.