Getting a New Credit Card, Keep These 4 Important Things in Mind, Ignoring Them Can Be Costly

Credit Card Tips: With the growing adoption of digital payments, credit cards have become a daily necessity. Their use has increased rapidly, especially among working people, as credit cards offer great convenience for bill payments and shopping. If you’re getting a credit card for the first time or are a new user, using it correctly is crucial. Proper use not only improves your financial habits but also strengthens your credit score. Let’s explore some important points to keep in mind when using a credit card.

Don’t make the mistake of paying only the minimum due amount

It’s often seen that people pay only the minimum due amount instead of the full bill. While this avoids late fees, the remaining amount attracts significant interest. This outstanding amount can gradually increase, becoming a significant financial burden. Therefore, try to pay the full bill every month. Now, the question arises: how can this be avoided?

Pay your bills on time.

Be aware that late payment of credit card bills directly impacts your credit score. Even a delay of just 1-2 days can harm your score. If you forget the due date, set a reminder or auto-debit feature on your mobile. Paying on time demonstrates your financial responsibility.

Don’t spend beyond your credit limit.

According to information, financial experts believe that it’s best to spend only 30-40 percent of your credit card’s total limit. This improves your credit score. For example, if your limit is ₹1 lakh, spending ₹30,000-₹40,000 is considered appropriate.

Check your credit report regularly.

Many people don’t check their credit report for long periods of time, which is inaccurate. It’s important to check your report periodically, as it can sometimes contain incorrect information or technical errors. If you notice any such mistake, it should be rectified immediately so that it does not affect your credit score.