Credit card is a blessing for many including me. I have been using Credit Card daily and with Rupay Credit Card it is part of my daily payment. Like I can use it literally everytime. Now the problem is there are some mistakes which should be avoided at any cost otherwise it will be a problem for you.
The problem is that, if you are not using it correctly then it will be a major problem for you, you can get into a trap and there will be no way you can come out from it. Some of the common mistakes to avoid are:
- Over spending
This is the major problem with Credit Card. People feel that the money in the Credit Card is there's but that's not true. We should only use the amount which we can pay pack at the end of the cycle.
- Making Only Minimum payment
It is a continuation of the above point where if you spend too much and don't have money to pay then people usually pay the minimum payment. But the problem is the interest rate of Credit card is the highest I.e. above 30% . So that means the amount of money which you have not paid will attract (30/12)% I.e. over 2.4% every month. And in no time you will get into the Credit Card debt.
- Missing due Dates
Missing due Dates should be avoided at any cost. Because that can affect your cibil score and thus will affect your loan or credit card taking ability in the future. So always pay in time, I pay all my credit cards 1 week ahead so that I don't miss the due date.
- Ignoring Reward Points
The best part of Credit Card is getting the rewards. Now a lot of people just ignore the rewards which is bad. We should take the full advantage of the reward points because some of the good cards can give more than 5% reward points which is to be honest a great source of saving money.
These are some of the Credit Card mistakes we should avoid at any cost.