Credit card
With the increase in the income of people in the country, the number of credit cards has also increased rapidly. As of May 2025, India had 11.11 crore active credit cards, while in May 2024 the number was 10.33 crore and only 6.10 crores in January 2021. Experts say that spending more than a limit in credit card can be harmful for you. Every transaction with credit card silently affects your credit profile, credit history and your credit score. This credit history is important for taking loans or credit cards in future.
What percentage should spend
According to industry experts, if your credit use is more than 50%, then it is a clear danger bell for the lending institutions. This is a sign of your greedy behavior towards credit. All such credit card users may have to face high interest rates. Personal loan applications can also be rejected.
Credit score has negative effects
RBI has made it mandatory for banks and card issuers to update credit reporting every 15 days since the beginning of this year. This tough time limit simply means that any payment behavior appears very fast in your credit profile. Because of this, the credit score is immediately affected.
Golden Rule of Credit Card Use
Keeping credit use less than 30 per cent, according to understanding experts, it is prudent to keep your credit use ratio less than 30% to display the responsible credit card use. To maintain good repair history to maintain yourself on the right path, pay credit card bills in due date or first.
Avoid depositing credit card fairy outstanding amount. Regularly monitor your credit report for accuracy and timely update. If you see any discrepancy, then file a complaint. Use an auto pay or reminder to remain updated on payment and avoid late fees.