Most people do not know about some things related to credit cards. In such a situation, people make many mistakes, which can cause them to loss later. Today we will tell you about some such important things related to credit cards.

Nowadays the use of credit cards has increased a lot. Most people use credit cards for money transactions and shopping. By using credit cards, people get the benefit of discounts, rewards points, and many offers, due to which people are getting attracted towards credit cards. In such a situation, if you are also a credit card user, then this news is going to be very important for you. Using a credit card is beneficial but some mistakes can make your credit card usage harmful.

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A credit card is a kind of loan, which you have to repay every month. Most people are not aware of some things related to credit cards. In such a situation, people make many mistakes, which can cause them to lose later. Today we will tell you about some such important things related to credit cards.

Credit card limit

Every credit card has a limit to use. You cannot use a credit card more than the limit. You should use only 30 percent of your credit card limit. Using more than this or more than the limit can spoil your CIBIL score.

Credit card bill

Always pay the credit card bill on time. In this, you are given two types of options. Total due and minimum due. You always have to pay the total due. By paying the minimum due, a hefty interest will be charged on you, which will increase the financial burden on you.

Closing the credit card

If you use two credit cards and you want to close one of your credit cards, then do not close it immediately, but keep it active. Just do not use it. Closing your credit card can increase your credit utilization ratio, which will have a direct impact on your credit score.

International transactions

Avoid making international transactions with your card. By doing this, you will be charged many types of charges like foreign currency transaction fees.

Disclaimer: This content has been sourced and edited from economictimes. While we have made modifications for clarity and presentation.