What not to do with Your Credit Card


#1

Shopping with credit card might seem to be an easy task at the time of purchase. But repaying the bills within the due date becomes a humongous task in the next few days. So, following are a few things that you shouldn’t do with your credit card.

  • Don’t pay your credit card bills late! When you extend your due payments, it will be subjected to daily interests and you’ll end up paying more!

  • Don’t use your credit cards for things that you can’t afford. Always remember that you need to repay whatever things you purchase within a particular time limit. If it’s above your financial abilities, it is better not to buy it!

  • Don’t get too many credit cards. It is advisable to stick on with a maximum of 2 to 3 credit cards. It becomes extremely difficult to manage the expenses that you make with multiple credit cards. So before you purchase a credit card, know its salient features and if it will be helpful to you on the longer run.

  • Don’t borrow on your credit cards since the interest will be calculated on a daily basis. This happens when you cannot pay the EMIs on time!

These are a few things to consider when you use a credit card. A bad credit score will lead you to bad CIBIL rating and will dent your chances when you want a loan! So be careful while handling credit cards and ensure you keep track with your expenses!


#2

Hi MKumar,

Here are the things you should keep in mind while using your Credit Card.

Don’t miss your Credit Card payment: There is always a cost associated with the benefits that you enjoy. The credit card companies, who lend you money for an interest free period of around 45 days and also provide you rewards for your purchases, ought to charge a fee ranging from 22-45% p.a if you fail to make the timely payment. If you want to enjoy these free benefits, then you should promptly repay your credit card dues each month i.e. by inculcating self-discipline, you can avoid these charges on your card.

Never pay only minimum: Paying only the minimum due amount might not classify you as a defaulter but may cost you an interest on the funds borrowed by you. You should always try to repay your complete credit card bill each month to avoid high charges. However, there may be months when due to some unexpected expenses, you might not be able to repay the credit card balance in full. Then only during those months, you should make at least the minimum payment and don’t increase your credit card balance by more purchases. If you know you don’t have the money to pay your credit card balance, then avoid using it until you can afford to pay new charges again.

Do not fully utilize your credit limit: Your credit score might get affected if you fully exhaust your credit limit and if you exceed your sanctioned credit card limit, then you may have to pay charges to your credit card provider. It is always advisable to use up to 50% of the credit limit sanctioned to avoid any negative impact on your credit limit.

Never share your credit card information: You should never share your credit card details, especially the password and PIN, with anyone (not even the customer care executive). Always ensure to enter or key-in your IPIN over the conversation with customer care and do not spell it out as this can lead to sharing of sensitive information over the phone with a third party.

Never trust all websites: While you use your credit card online, always ensure to check the valid source and authenticate the genuinely of the website where you use your credit card. Always shop from the reputed websites and never trust the public computer or Wi-Fi as this might hack your credit card details.

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Cheers,
BB Expert