Credit Card Tips: Previously, only a few people had credit cards, but today, almost everyone has one, and they use them for everything from online shopping to bill payments. Many people make mistakes while using credit cards. Often, they make mistakes that directly impact their CIBIL score and can lead to major problems later on. So, avoid making these mistakes. Let’s explore them in detail.
Read Here: Best Hybrid SUVs 2025 – Perfect for City Traffic and Long Weekend Drives
Mistakes to Avoid
The most common mistake is failing to pay bills on time. Many people don’t pay the minimum due amount until the next month. This increases interest and causes the bank to doubt your repayment capacity. This causes a sudden drop in their CIBIL score.
The next biggest mistake is using the card’s entire limit. Spending 90 to 100 percent of your limit weakens your credit profile. To maintain a good score, it’s best to use up to 30 percent of your limit.
Many people repeatedly apply for cards and loans from different banks. This is also not correct. It’s important to note that you should only apply when needed. Otherwise, your CIBIL score could be degraded. Many people don’t use their cards at all, which is also not the right approach.
Read Here: This State Govt Is Giving ₹2 Lakh to Women! Do You Qualify? See Details
It’s important to note that credit scores are based on card activity. Having more than one card and making a few transactions will strengthen your history and improve your CIBIL score. Never make all payments with a single card.
It’s often seen that people have two to three cards and close the cards they use less frequently. However, this is not correct; doing so impacts their CIBIL score. By avoiding all these mistakes, you can not only keep your CIBIL score correct.