Credit cards are becoming a necessity for people in today's time. If you do not have money in your account, then you can get your work done by making payments through a credit card. Through a credit card, you get a loan for the short term, and a grace period of a certain time is also given to repay that loan. If you repay the loan in the grace period, then you do not have to pay any interest on that loan. In such a situation, you can easily complete your work through a credit card.

Apart from this, many offers, discounts rewards, etc. are also available on shopping with a credit card. Due to all these facilities, credit cards have become very popular. But if you are a new user of credit cards, then you must know some things related to it, so that there is no scope for regret later.

Do not use more than 30% of the limit.

You may have a good limit on the credit card but do 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 have trouble taking a loan in the future.

Minimum and total due

There are two types of due amounts, one is total due and the other is minimum due. If you pay only the minimum due, then the only benefit you will get is that your card will not be blocked, but you will have to pay heavy 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.

If you have been using a credit card before and you have more than one card, then do not close the credit card suddenly. The sudden closure of a credit card 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 divided into only one. 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You know that cash can also be withdrawn from a credit card, but there is a limit on how much cash can be withdrawn. 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 an interest-free credit period on cash advances.

Do not make international transactions.

While taking a credit card, many people are also 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 prepaid cards instead of credit cards abroad.