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In today’s time, credit card has become not just a means of spending but also a wise financial tool. With proper use, it not only fulfills your needs but also strengthens your financial identity. But a little carelessness can lead to huge interest, penalty and falling credit score.
New Delhi. If today’s era is called the era of credit card purchases then it would not be wrong. People are using credit cards extensively. Banks also do not hesitate in issuing it. Every aspirant gets a credit card issue. Cashback, reward points and many other facilities are available on credit card purchases. It also proves useful in managing sudden expenses. But its misuse can increase the financial burden. If payment is not made on time, interest rates can reach up to 40 percent, which can spoil your budget. Therefore, it is very important to use the card wisely and within limited limits.
Strengthen your credit identity
Credit score is the biggest measure of a person’s financial credibility. Especially for youth and freelancers, it is very important that they make timely payments through small purchases. According to experts, it is best to keep credit card usage within 30 percent limit. By doing this the credit score improves and it becomes easier to take loan or home finance in future.
Include card usage in financial planning
Smart finance management means not just investing but also responsible spending. Therefore, credit cards should be made a part of your financial plan. Keeping track of monthly expenses and payments, controlling usage limits and regularly checking credit reports are part of financial discipline. By doing this you avoid interest and penalty and keep your financial health balanced.
Proper use will create cooperation, not burden.
If used wisely, credit card can become the best tool to achieve your financial goals. Timely payments, limited spending and planned usage not only strengthen your financial position but also make you a responsible and reliable card user.
