6 biggest misconceptions related to credit cards- Half of India is trapped in their trap...the bank itself told what is the truth

The use of credit card has increased rapidly in today's time. Youngsters use it with great enthusiasm. If you need money in an emergency, then credit card is very useful for you. Apart from this, shopping with credit card gives many benefits ranging from discounts, rewards to cashback. But some such misconceptions related to credit card have spread among the people, whose victims are also those who use it themselves. HDFC Bank itself has cleared these misconceptions on its website.

When you apply for a new credit card, the bank checks your credit score, which is called "hard inquiry". Doing this repeatedly can harm the score a little, but if it is happening once then there is nothing to worry about. If you use the new card properly and pay on time, the score improves quickly.

If you can control your expenses, it is beneficial to have more than one card. This gives you a higher credit limit and you also get different rewards on different cards. For example, HDFC Regalia card gives a lot of benefits in international travel.

This is not right. The higher the credit limit, the lower will be your 'credit utilization', which is good for the credit score. Closing the old card reduces your total limit and can affect the score. Apart from this, the old card shows your credit history to be strong.

If the bank is increasing your limit, do not refuse it. This shows that you are a reliable borrower. This increases your spending capacity and the debt seems less compared to the total credit, which improves the score.

It is generally advised to make full payment every month. But some experts believe that if even a little balance carries over to the next month, there is no need to worry too much. Even this does not have a very bad effect on the score.

Everyone's needs are different. The cards that charge fees also offer many great benefits. Like HDFC Infinia card - it includes lounge access, personal concierge, dining discounts, insurance and even free golf. If you look at the benefits of all these, they are much more than the annual fee.