Credit Card Usage Tips: In today’s time, credit card has become a companion of almost every class of people. Its craze is very high especially among the youth. Employed youth use credit cards extensively for online shopping, bill payment and to fulfill other needs.
Credit cards are becoming more popular due to attractive discounts, reward points and easy payment options available on them. However, if you do not know how to use credit card properly, it can also bring financial problems for you. Therefore, before using a credit card, some important things should be kept in mind. Let us know for what things credit card should not be used…
1. Do not withdraw cash
Withdrawal of cash from credit card can be your biggest mistake, because high interest starts being charged from the day you withdraw money from ATM. Besides, cash advance fees and many other charges are also added. Experts always advise that credit cards should not be used at all for cash withdrawal.
2. Use card limit wisely
It is very important to use the credit card limit wisely, otherwise your credit score may get damaged. For example, if your credit card limit is Rs 50 thousand, then you should try not to spend more than 50 percent of the card limit. With this your credit score also remains correct.
3. Avoid payment of minimum dues
When you pay only the minimum due amount instead of paying off the entire credit card bill, interest continues to accrue on the remaining balance. Due to this the debt increases rapidly and it can double in a few months. Therefore one should avoid paying minimum dues.
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