Never use your credit card at these 7 places—doing so could cost you dearly..
Credit Card Usage Alert: In today's digital age, credit cards have become an integral part of our lifestyle. When used correctly, they help earn excellent reward points and cashback while also building a strong CIBIL score.
However, a single wrong swipe can take a heavy toll on your finances. Hidden charges associated with credit cards can trap you in a debt cycle. To ensure financial safety, here are 7 instances where you should avoid using your credit card.
Withdrawing cash from an ATM
Using a credit card to withdraw cash from an ATM can prove to be a major mistake. Banks charge a cash advance fee ranging from 2.5% to 3% for this service. There is no interest-free credit period; hefty interest—ranging from 16% to 42%—begins accruing the very minute you withdraw the cash.
Refueling at petrol pumps
When you pay using a credit card at a petrol pump, banks levy a fuel surcharge along with applicable GST. Even if some cards offer a surcharge waiver, processing fees can still be a financial burden. Additionally, there is a risk of card skimming at petrol pumps.
Loading money into digital wallets
Most banks now charge a convenience fee plus GST for transferring money from a credit card to digital wallets like Paytm, PhonePe, Google Pay, or Amazon Pay (known as 'wallet loading'). Doing this repeatedly leads to unnecessary extra charges, which can adversely affect your financial health.
Booking train tickets via IRCTC
Paying with a credit card on the IRCTC website or app incurs payment gateway charges of 1% to 2%, plus applicable taxes. You can avoid these extra charges by booking tickets using UPI or net banking instead of a credit card. Unsafe or Suspicious Websites
Never enter your credit card details on websites that lack the HTTPS secure lock icon or appear suspicious. Fraudulent websites are a major cause of cyber fraud and data theft.
Card-to-Card Balance Transfer
Transferring the outstanding balance of one credit card to another might seem convenient at first, but banks charge hefty processing fees and interest for this, causing your total outstanding debt to increase rather than decrease.
If you are already servicing a home loan, personal loan, or other significant EMIs, avoid making new purchases using your credit card. Spending beyond your actual financial capacity can lead you into a debt trap.
Disclaimer: This content has been sourced and edited from NDTV India. 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.
