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If you use a credit card like this, then your CIBIL score will not be bad, just paying the bill will not work.

Siddhi Jain January 21, 2025 02:15 PM

Credit Card Using Tips: If you use a credit card. Then know that just paying the bill on time will not keep the CIBIL score good. Rather, special attention has to be paid to these things as well.

If seen in the last few years, the invoice of credit card has increased a lot. Earlier when people did not have enough money to buy something, people had to borrow money from others. But now the whole environment has changed.

Now if someone does not have enough money to buy something. Or there is no balance in their account to pay the bill. So people can now complete these tasks using credit card. The number of credit card users has increased significantly year after year.

According to the data released in the year 2023, the total number of credit cards in India has crossed 10 crores. In the year 2022, where 1.22 crore new credit cards were issued. So in the year 2023, this number was 1.67 crores.

A bill is generated after using a credit card every month. If the bill payment is not made on time. Then it spoils your CIBIL score. Due to which your chances of getting a loan in future are reduced. But this does not affect the CIBIL score.

Rather, you have to use credit card carefully. So that your CIBIL score is not affected much. Let us tell you that you should never spend the entire limit of the credit card. If the limit of your credit card is 100,000. Then you should spend the limit from 20,000 to 30000 only.

Because if the credit utilization ratio is high. That means you will spend the entire limit of your credit card again and again. This means that you are more dependent on the credit card. And this spoils your CIBIL score.

Let us tell you that if your CIBIL score falls below 700. Then it is considered a bad CIBIL score. And then in such a situation it becomes very difficult for you to get a new credit card or any kind of loan. That is why pay special attention to the credit utilization ratio.

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