The proliferation of credit card usage in India is remarkable, with almost every individual now in possession of one. It’s quite likely that you, too, have a credit card. This financial tool enables the purchase of goods on credit, streamlining the shopping experience.
When you obtain a credit card, it typically comes with a specified credit limit. This limit enables you to make purchases within its confines. At the end of each month, you have the option to settle the amount spent on those purchases. It’s crucial to exercise caution and avoid errors while utilizing a credit card to prevent any complications.
Avoid these mistakes while using credit card
Similar to the various advantages of credit cards, there are also some disadvantages. Using a credit card incorrectly can lead to significant trouble.
One should refrain from exhausting the entire credit limit granted on their credit card. Ideally, it’s suggested to utilize only 30% to 40% of the credit limit.
Fully utilizing your credit limit may have a negative impact on your credit score. It’s important to avoid withdrawing cash from ATMs using your credit card at any time.
If you withdraw cash from an ATM using your credit card, you may be subjected to various additional charges. It’s crucial never to share your credit card number, CVV, and expiration date with anyone.
This may result in the leakage of data from your credit card and possible misuse. Alternatively, you have the option to set a limit on your credit card. This will restrict transactions once the limit is reached.
When making online purchases via a website or app using your credit card, refrain from inadvertently saving your credit card information on the platform. Furthermore, never click on links from third-party websites to increase your credit limit.
