Nowadays, credit cards have become an important part of our daily life. Whether it is purchase or payment of online bill, their use is increasing everywhere. According to the data of the Reserve Bank of India, there are more than 100 million active credit cards in the country, indicating that people prefer to use cards rather than cash transactions. However, the more attractive credit card features are as attractive, the more caution is needed. If negligence is taken, they can cause financial crisis. Therefore, it is necessary to follow some important precautions so that you can avoid financial losses.
The most important rule when using a credit card is to always pay your bill on time. If you delay payment, not only do you have to face heavy late fees, but also increases rapid interest. These interest rates can be so high that your debt may increase soon, which makes it difficult to repay. By paying on time, you not only avoid additional expenses, but also maintain a good credit score.
Given the increasing cases of cyber fraud, it is very important to keep your credit card information safe. Ever your own Card number, Cvv, Pin Or Otp Do not share with anyone. Frauds can take advantage of your small negligence and steal money from your account. Do not give your card details on any unknown person’s phone calls, emails or messages. Always remember that banks do not ask for such confidential information from you.
Avoid using the entire limit of credit card. If you spend a large part of your available credit limit, your credit utilization ratio increases, which negatively impacts your credit score. To maintain a good credit score, it is advisable that you use less than 30% of your credit limit. Poor credit scores may have difficulty in taking loans or getting new credit cards in future.
Avoid using credit cards for unnecessary expenses. By repeatedly swipe and excessive purchases, you can get caught in a debt trap. Increased debt can spoil your financial condition and also cause mental stress. Use credit cards responsibly, not just to fulfill desires. With this you can keep your financial condition stable.
