In today's time, credit card is not limited to urban areas only, but it has started being used in rural areas as well. There are many offers on credit cards in all online and offline sales. In such a situation, people often wonder whether they should also have a credit card. Keep in mind that a credit card is a loan, which you have to repay in about a month. In such a situation, some people get trapped in the debt trap by taking many credit cards. If you also want to take a credit card, then first you should ask yourself these questions.

1- Do you need a credit card?
The first question you should ask yourself is whether you need a credit card or whether are you taking a card just because your friends also have a card. If you are very impressed with the benefits of a credit card and want to take a card, then also you should keep in mind that you are taking a kind of loan, from which you will have to repay the shopping expenses after some time.

2- Which credit card should I get?
There are many types of credit cards available in the market. There is a credit card for every kind of need. In such a situation, before getting a credit card, see for which purpose you spend more. After that, get a credit card according to that, so that you get more benefits. If you spend a lot on traveling, then you should take a petrol or travel card. If you are fond of shopping, then take a shopping card. In this way, you will be able to earn more reward points on that card. If you buy clothes or pay for petrol with a travel card, then you will get less benefit.

3- How to take advantage of reward points?
Everyone knows that reward points are available on credit cards, but many people do not understand that reward points are also different for different types of transactions. For example, you can get 10 reward points for spending Rs 100 on dining, while on other things you get only 2 reward points for every Rs 100. If you already know where you are getting more reward points, then you will spend most of your money with a credit card. Before getting a credit card, also know what you get in exchange for one reward point. Some banks give 1 rupee for 4 reward points, while some have different calculations.

4- Is shopping on EMI necessary?
A very great feature is available on a credit card, which is EMI. You can buy any item on EMI. You can even convert your bill into EMI. However, most of the people who get trapped in the debt trap due to credit cards are those who do a lot of shopping due to EMI. Many times people keep converting their bills into EMIs one after the other, due to which they get trapped in the debt trap. Before shopping, think about whether EMI is necessary or not, otherwise, you may face problems.

5- What is the minimum due?
Many people carry forward their dues to the next month by paying the minimum due on the credit card. If you do this two or three times, then it is okay, because in such a situation you pay interest on the dues, which earns the credit card company. But if you make it your practice, then the outstanding debt on you will keep increasing and you may get trapped in the debt trap.

6- How much should you use the credit card?

There are many customers who use their credit card limit more than required. The limit given to you and the amount you use is called the utilization ratio. If this utilization ratio becomes high then the credit limit can also be reduced.