Credit card: The use of credit cards is increasing rapidly these days. It is very convenient for people. But if you make some mistakes while using a credit card, you may have to suffer a huge loss.
Credit Card: In the recent past, credit card users have increased rapidly in the country. The reason for this is that through credit cards, people get the facility to easily buy even those things which are difficult for them to afford. Credit card payment is a kind of loan, which you have to repay later. But its advantage is that you are given a grace period to repay the loan.
During the grace period, you can repay that loan without any interest. Not only this, many better deals, offers, rewards and discounts are also available on credit cards. But sometimes credit card users unknowingly make some mistakes, due to which people have to suffer later. Know about it here-
Minimum and total due
There are two types of due amounts, one is total due and the other is minimum due. Many times when people are unable to pay the total due, they pay the minimum due thinking that they will get some relief from the interest. If you also think so, then you are mistaken. By paying only the minimum due, you will only get the benefit that your card will not be blocked, but you will not get relief from the interest. 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.
Do not close the card suddenly
Many times people who have more than one credit card suddenly close one of the cards. This can increase the credit utilization ratio because your credit utilization ratio was earlier divided between two cards, but after one card is closed it will be in one only. A high credit utilization ratio worsens your credit score. Therefore, even if you do not use the card, keep it active.
Do not withdraw cash
You know that you can withdraw cash from a credit card, but there is a limit to how much cash you can withdraw. But you should always completely avoid withdrawing cash from a credit card because you have to pay a hefty charge for this. At the same time, there is no benefit of interest free credit period on cash advance.
Take care of CUR
Although you may have got a good limit on your credit card, you should not use more than 30% 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 face problems in taking a loan in the future.
Do not make international transactions
While purchasing a credit card, many people are given tempting offers to use it abroad. But the story behind this is not told to you. 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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