Credit Card: Before swiping your credit card, learn these 5 secrets: avoid debt, earn money, and boost your CIBIL score..

The digital age is here, and digital payments are growing rapidly. Almost every bank is offering new deals and rewards on credit cards.  Using your credit card wisely can not only increase your savings but also strengthen your credit profile.  If you pay your card bills on time and spend thoughtfully, a credit card can be a great financial tool. Here are 5 smart credit card strategies that can help you maximize rewards and avoid falling into debt.

1. Choose the Right Card Based on Your Spending Habits

First, choose a credit card that matches your lifestyle. For example:

If you travel frequently, choose a card with airline miles, lounge access, and travel insurance.
For online shoppers, cards with cashback, e-commerce discounts, and food delivery offers are best.
Fuel credit cards are very beneficial for those who travel daily.
Choosing the right card ensures you don't waste rewards and get the most out of your spending.

2. Track Rewards and Seasonal Offers
Banks frequently offer cashback, bonus rewards, and special offers during festivals. Therefore:

Keep an eye on your bank's app and SMS alerts.
Redeem your reward points before they expire.
Use co-branded cards at partner events to get significant discounts.
Using offers at the right time can multiply your savings.

3. Keep Your Credit Utilization Low (Below 30%)

Credit card usage directly impacts your credit score. Therefore:

Try not to use more than 30% of your total credit limit.
(For example: on a limit of ₹2,00,000, use only up to ₹60,000)
Instead of putting all your expenses on one card, distribute them across two cards.
Request an increase in your credit limit as your income increases. Low utilization shows lenders that your income is not dependent on loans.

4. Pay the full bill on time, not just the Minimum Due
The most important rule of a credit card is:
Pay the bill on time and in full.
Paying only the Minimum Due increases interest, and the debt keeps growing.
Timely payment helps you:
Avoid late fees
Strengthen your credit score
Avoid extra interest

5. Use EMIs and card features wisely
EMIs make large expenses easier, but:

Compare interest rates, processing fees, and charges carefully.
Choose No-Cost EMI wherever possible.
Keep unused features like international payments disabled.
This ensures security and saves you from unnecessary charges.

Caution is necessary
Misuse of a credit card can create a huge debt trap.
High interest and late payments damage your credit score.
Correct usage can increase savings.
Rewards, cashback, and offers save money.
Timely payments strengthen your credit score.
Disciplined use improves your financial health. (Note: This information is for general knowledge only, contact your bank for more details)

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.