Credit Card Tips: These 5 mistakes cost heavily on credit card users, know here...

The use of credit cards has been increasing rapidly in recent times. The discounts, rewards, and offers on it attract people a lot. But credit cards have to be used very wisely, otherwise you may have to bear huge losses. Here are those 5 mistakes that cost a lot to credit card users.
Spending more than the credit limit
You may have a good limit on the credit card, but never use more than 30 percent of the credit card limit. The bank considers those who spend a large amount at once as financially weak. This spoils your CIBIL score. In such a situation, you may have trouble taking a loan in the future.
Paying the minimum due
There are two types of due amounts, one is total due and the other is minimum due. If you pay only the minimum due, then the only benefit you will get is that your card will not be blocked, but you will have to pay a hefty interest on the outstanding amount and this interest will be charged on the total amount. Therefore, while paying the credit card, always pay the total due.
Sudden closure of the card
Many times, people suddenly close one card if they have two cards. This should not be done. This can increase the credit utilization ratio because your credit utilization ratio was earlier divided between two cards, but after the card is suddenly closed, it will be in one. A high credit utilization ratio worsens your credit score. Therefore, even if you do not use the card, keep it active.
The mistake of withdrawing cash can be costly.
In difficult times, you can also withdraw cash from the credit card. How much cash you can withdraw is decided according to the limit of your card. However, withdrawing cash from a credit card should be completely avoided because you have to pay a hefty charge for it. Apart from this, there is no benefit of interest interest-free credit period on cash advances.
Making international transactions
While taking a credit card, many people are also given tempting offers to use it abroad. But you are not told the story behind it. If you use a credit card abroad, you have to pay foreign currency transaction fees. It is better to use a prepaid card instead of a credit card abroad.
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