Credit Card Uses:  The use of credit cards has increased significantly these days.  They can be used not only in emergencies but also, when used correctly, can help you build a better credit score and earn rewards. However, a little carelessness can lead to heavy losses. Using your card in the wrong places can increase your debt and lower your CIBIL score. Therefore, use your credit card only where it won’t cause you harm. We have identified some places where you should absolutely avoid using your credit card.

Payment at Petrol Pumps

When paying for petrol, diesel, or CNG at a petrol pump with a credit card, service charges and GST are applied. Besides, there’s also the risk of skimming. Therefore, use your card cautiously at petrol pumps.

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Withdrawing Cash from ATMs

Withdrawing money from an ATM using a credit card can be expensive. Banks charge a cash advance fee of 2.5% to 3%, and interest starts accruing immediately. There is no grace period. For example, withdrawing just ₹10,000 could cost you ₹10,400 or more in a short time.

Adding Money to Digital Wallets

Adding money to wallets like Paytm, PhonePe, Google Pay, or Amazon Pay using a credit card can also be expensive. Wallet companies charge a convenience fee, and GST is also applied to it. Even for small amounts, this can become an extra expense for you.

Ticket Booking on the IRCTC Website

Note that when booking tickets on IRCTC with a credit card, an extra charge of 1 to 2% is added along with payment gateway fees and GST. So, be careful when buying tickets.

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If You Already Have EMIs or Loans

If you already have the burden of a home loan, personal loan, or other EMIs, new expenses on your credit card can increase your financial stress. In such times, it’s better to use a debit card or UPI. This way, you will only be able to spend the money you have in your account. Suspicious Websites or Unsafe URLs

When making online payments, always enter your card details only on secure websites. If the site is not secured with HTTPS or the URL is suspicious, making a payment there can be risky. Fake websites increase the risk of data theft and fraud.

Balance Transfers

Transferring a balance from one credit card to another incurs interest and processing fees. This can prove expensive for you. Therefore, avoid balance transfers.