Credit Card:If you use a credit card, do not make these 8 mistakes! You will get into trouble while handling it..

In today's digital world, a credit card is not just a piece of plastic but has become an important part of our lives. From online shopping to paying bills, it gives us countless conveniences. But the other side of the coin is that if it is used carelessly, it can trap you in such a quagmire of debt that it becomes difficult to get out of it. Often people unknowingly make some mistakes, for which they have to pay the price later. Let's know about those 8 big mistakes which you should always avoid.

1. The trap of paying only 'Minimum Due'

This is the biggest and most common mistake of credit cards. The bank gives you the option to pay a 'Minimum Amount Due' along with the total bill every month, which is often only 5% of the total bill. People think that if they pay this much, the work is done, but this is where the meter of debt starts.

2. Delay in paying the bill

Paying the bill after the due date is a double blow. First, the bank charges a hefty late payment fee which can range from Rs 500 to Rs 1200. The second and the biggest blow is on your CIBIL score. Every late payment lowers your score, which makes it difficult for you to get a loan or a new card in the future.

3. Withdrawing cash from a credit card

Withdrawing cash from a credit card seems very easy in an emergency, but this deal is very expensive. As soon as you withdraw cash from the ATM, interest starts accruing on that amount from the same day. There is no grace period in it. Also, the bank charges a cash advance fee of 2.5% to 3.5%. This is a very expensive loan; always avoid it.

4. Using the full credit limit
If your credit limit is Rs 1 lakh and you spend Rs 90,000 or more every month, then it is dangerous for you. This is called 'Credit Utilization Ratio' (CUR). More than 30% CUR is considered negative for your credit score. This shows that you are too dependent on loans.

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