A credit card is a plastic card issued by banks or credit card companies. It allows us to make purchases without paying any cash or check.
It is very convenient for us to own a card, especially for purchases. Once we wish to buy things or obtain services that value a big sum of money, we needn’t carry a lot of cash or purposely issue a check to make payment. In our everyday life, we could face the chance of being robbed, if we hold a sum of cash, we’d then lose all our money. Nonetheless, if we lose the credit card, we are able to instantly report the loss and get our card changed. We cannot undergo a big loss.
People having credit cards or planning to apply in a near future must be aware of these facts:
- All the credits card has a fixed date to pay your monthly bills So don’t ever forget to pay your dues on time.
- If you use all your limits, then it impacts your credit score. To maintain a good cibil score, you should use a maximum of 60% of your limit.
- While paying the credit card bills, there’s a two amount shows i.e., minimum due and full due amount. Never pay the minimum dues. It will affect your credit score badly plus the charges on your next bill.
- You must check the joining fees, annual charges, and other charges if any. All banks have different fees according to their type of card. Some of them are free of cost and also there are some cards having to join and annual charges even more than Rs.10000.
- Don’t ever send your credit card photo to anyone. It’s very easy to use your credit card while shopping online especially for international purchases. In that case, money debited from your card without OTP verification.
- The shape and dimension of all cards are the same. It is because these dimensions are governed by an international standard – ISO 7810.
- There’s very little which means to the date of expiry in your card. You should use your card even after the date of expiry as a result of the new card carries the same number. The main cause for the alternative is a restricted lifetime of the magnetic strip (about 3 to 4 years).
- Most individuals imagine that in the event that they pay their card dues on time, their credit score rating shouldn’t be affected. Nevertheless, extreme use of the credit limit can have an effect on your credit score rating. This problem could be avoided if you can improve the credit score limit of your card.
- Credit card companies offer attractive rewards and cash rebates on credit cards. These are either in the form of cashback or reward points.
- Don’t ever overspend with your credit card. A credit card is useful in an emergency situation that’s not mean you can spend above your income. This is the first step toward debt.
- Don’t ever apply for a card with having short grace period. Generally, the grace period is about 25 days.
- You must report to your credit card company as soon as possible if your card has been stolen or misplaced.
Don’t go for more than 2 credit cards. This will helps you today but it is bad for you in a near future.