Credit Card Usage Tips: In today’s time, credit card has become a companion of almost every class of people. Its craze is very high especially among the youth. Employed youth use credit cards extensively for online shopping, bill payment and to fulfill other needs.

Credit cards are becoming more popular due to attractive discounts, reward points and easy payment options available on them. However, if you do not know how to use credit card properly, it can also bring financial problems for you. Therefore, before using a credit card, some important things should be kept in mind. Let us know for what purposes credit card should not be used…

1. Do not withdraw cash

Withdrawal of cash from credit card can be your biggest mistake, because high interest starts being charged from the day you withdraw money from ATM. Besides, cash advance fees and many other charges are also added. Experts always advise that credit cards should not be used at all for cash withdrawal.

2. Use card limit wisely

It is very important to use the credit card limit wisely, otherwise your credit score may get damaged. For example, if your credit card limit is Rs 50 thousand, then you should try not to spend more than 50 percent of the card limit. With this your credit score also remains correct.

3. Avoid payment of minimum dues

When you pay only the minimum due amount instead of paying off the entire credit card bill, interest continues to accrue on the remaining balance. Due to this the debt increases rapidly and it can double in a few months. Therefore one should avoid paying minimum dues.

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Credit Card Usage Mistakes: Credit cards are becoming a necessity for people today. Especially employed youth use credit cards extensively. People are using credit cards for everything from shopping to paying various bills. However, if you do not have some information related to credit cards, sometimes it can put you in trouble. Because it is a kind of loan, you may face problems.

At the same time, some people take advantage of discounts, reward points and various types of offers by using credit cards properly. While shopping online, credit card users sometimes get special discounts. That is why credit cards have become so popular today. If you also use a credit card, you should know when not to use it. So that you do not suffer any kind of financial loss…

Never withdraw cash from credit card

Credit cards should never be used to withdraw cash. On withdrawing cash from credit card, heavy interest starts being charged from the very first day. Apart from this, many extra charges are also imposed separately. Therefore, one should stay away from withdrawing cash from credit card.

Do not spend more than the limit

Every credit card has a spending limit. One should avoid spending above the credit card limit. For example, if your credit card limit is Rs 30,000, you should spend less than this. Spending more than the credit card limit can damage your credit score.

minimum due

If your credit card bill is outstanding and you pay the minimum due, you should avoid doing so. If you are not able to pay the credit card bill, then you should try not to use the credit card.

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