Credit Card Usage Tips: Use of credit card will become a profitable deal, you just have to take care of these 5 important things...
Nowadays almost all Indians with regular income will have a credit card. However, out of this, a very small number will be those people who know how to take full advantage of the credit card. Credit card is a way of giving loans (Credit Card Debt), hence people are hesitant to use them because they consider it a way of getting trapped in a debt trap. At the same time, many people have suffered huge losses due to the use of cards without thinking.
The trend of credit cards has increased rapidly nowadays. The reason for this is that it is useful in times of emergency. Through this, you can use the amount as a loan and can also repay it without interest during the grace period. Apart from this, attractive rewards, cashback, discounts, offers, etc. are also given on credit card payments. If a credit card is used properly, it can greatly improve your CIBIL score, but if there is a mistake in its use, it can also spoil the credit score. Therefore, if you are a credit card user, then take special care of some things while using it.
1. Keep in mind the expenditure limit
If your income is low and you take the help of a credit card to meet your expenses, then set a limit for it. Spend only 30% of the total credit card limit. Don't do more than this. Suppose your credit card limit is Rs 1 lakh, then you should spend a maximum of only Rs 30,000. Not more than this otherwise your credit utilization ratio is adversely affected.
2. Don't miss the due date
If you have used a credit card, then take special care of the due date. Don't miss it. The last date to pay credit card bills is called the credit card due date. If you miss it, many difficulties will increase for you.
3. Do not shop due to offers or discounts
Do not make credit card purchases under compulsion due to offers or discounts. Use it only when needed. Many times we mess up our budget by looking at cheap things. Due to this, you can also get entangled in the web of debt. Always think about repayment before making a large purchase using your credit card.
4. Avoid having more than one credit card
If you have one credit card and it is working well, then by taking more credit cards (multiple credit cards) you will increase the difficulty for yourself because having a credit card sometimes increases unnecessary expenses. If you have more than one credit card, it often becomes difficult to recover the amount spent on time. In such a situation, there is a possibility of getting entangled in debt. Apart from this, many other expenses are also associated with the credit card. By having more than one card, you have to pay unnecessary expenses.
5. Do not make the mistake of withdrawing cash
You can also withdraw cash from credit cards like ATMs, but you should completely protect yourself from taking advantage of this facility. You have to pay a hefty charge for cash transactions through credit cards. Also, there is no benefit of interest interest-free credit period. From the day you take the loan, interest starts accruing and the debt starts increasing. Also, finance charges remain applicable until you make the repayment. In such a situation, it does not take long to get trapped in the debt trap.
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