Credit Cards have become an essential part of daily life. They help you manage emergencies, make high-value purchases and provide flexibility when you need it.
After making these purchases, you might have received email and SMS alerts about your transactions. But these are not the only types of alerts that you receive when your Credit Card is used.
Let’s explore the different types of alerts and why they are important so that you can set them up.
Table of Contents
What are the types of Credit Card alerts, and how can they help you?
Whether you apply for a free Credit Card or a regular one, consider the table below to understand each of the alerts:
| Type of Alert | Meaning |
| Debit alert | Alerts sent to you when you spend a certain amount of your credit limit for a purchase. |
| Upcoming EMI alert | Alerts sent to you before your due date when you have an upcoming EMI payment. |
| Balance alert | Alerts sent to you when you have a low credit balance or have used up a significant portion of your credit limit. |
| Fraud alerts | Alerts sent to you for any suspicious activity related to your Credit Card account. |
Let’s now explore how they can help you below.
Fraudulent activities prevention
Fraudulent activities can involve people trying to purchase something online with cards that don’t belong to them. These transactions often show up as debit alerts or OTP alerts, depending on the situation.
For instance, in case you receive a debit transaction alert for something you did not buy, contact the bank immediately. Once you get through, ask them to block the card to prevent further transactions.
Another type of fraudulent activity is people trying to apply for a free Credit Card by using someone else’s credentials. So if you receive a fraud alert requesting you to complete your KYC for a new card, contact the bank immediately.
Expenditure tracking and budgeting
Banks send Credit Card balance alerts for exceeding the credit limit usage or having a low credit balance. For instance, they can send messages saying that 40% of the credit balance has been exhausted.
This percentage is known as the credit utilisation ratio and will vary depending on how much you use the card. You should ideally utilise not more than 30% of your credit limit, as exceeding it may affect your credit score.
Boost in credit score
Your credit score is impacted by your credit utilisation ratio and timely payments. Your bank helps you stay on top of your payments by sending you upcoming payment alerts for your Credit Card bills.
These alerts typically arrive a few days before the payment is due or on the schedule you set. Paying on time not only helps you avoid late fees but also maintains a healthy credit record, which can improve your credit score over time. A strong credit score, in turn, makes it easier to apply for new credit cards, loans, or higher credit limits in the future.
Conclusion
Setting up transaction alerts can help you stay on top of your bills, monthly expenditures, and avoid fraudulent transactions. You can do this by logging into your bank’s website or mobile application portal and navigating to the Credit Card section.
Once done, set up the type of alerts you prefer and customise them, setting timelines and threshold limits. If you have any doubts, your bank’s customer service can guide you through the process.
