5 Credit Card Mistakes to Avoid: Credit card is used everywhere today, but its use is not right for every expense. It is considered better not to use your card at some places or for some time. By doing this you can avoid big financial problems and debt.
Credit Card Use Dos and Don’ts: Today everyone is using credit cards. Be it paying restaurant bills, booking tickets, joining a gym or subscribing to OTT, credit card has become a necessity for everyone. But do you know that it is not right to use credit card for all types of expenses? Especially if you want to keep your credit utilization below 30% or you are lax in paying bills on time, then using credit cards can be risky for you in certain conditions. Know in this article when one should not use credit card and why?
When close to credit limit
If your total credit limit is Rs 5 lakh and you have already spent Rs 4.5 lakh, it is best to clear your outstanding bills before making any fresh spending. Spending close to the limit can affect your credit score and also increase interest.
Do not use credit card for cash transactions
Withdrawal of cash from ATM or using the card to make cash-equivalent transactions is not at all safe. If you need cash immediately, use a debit card or bank transfer.
When there is no arrangement to pay the full balance
If you don’t have the resources to pay off the entire balance by the end of the month, it’s best to avoid using the credit card. It is not right to pay only the minimum. Save for a few months before spending and then spend with a plan.
Big purchase without planning
Avoid paying large bills or purchasing expensive items without a pay-off plan. Doing this is not at all good for your financial health. Experts advise to always decide when and how you will be able to repay the full amount.
Avoid doing transactions on suspicious websites
Using credit cards on some fake or unsafe looking websites can be risky. Do not enter your card details or make payment on such websites even by mistake. Use the card only on trusted and secure websites.
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