If you use a credit card, do not make these 5 mistakes, otherwise, you will end up with a big bald head
CREDIT CARD: Credit card is such an important thing in today's time that people cannot ignore even if they want to. Thus using the credit card more and more gives you discounts and reward points. Often credit card users make some mistakes that lead to long bills. The CIBIL SCORE of the users gets worse as the bill gets longer. Let's understand what the users should be aware of.
CREDIT CARD: Credit card is such an important thing in today's time that people cannot ignore even if they want to. Thus using the credit card more and more gives you discounts and reward points. Often credit card users make some mistakes that lead to long bills. The CIBIL SCORE of the users gets worse as the bill gets longer. Let's understand what the users should be aware of.
1. Avoid withdrawing money from ATMs with credit cards
If you use a credit card, avoid using a credit card to withdraw money from an ATM. Every credit card company while selling you the card definitely tells you that the user can also withdraw cash from the ATM using the credit card. But the thing to understand here is that if you pay by credit card then it takes approximately 30-45 days. On the other hand, you don't get any time to pay on cash, instead your credit card starts accruing interest immediately after the cash is withdrawn. Here 2.5 to 3.5 percent interest is charged per month. On this you also have to give flat transaction.
2. Avoid international transactions
Even if your credit card is allowed to transact abroad, beware that using a credit card abroad will also incur foreign currency transaction fees. Here the ups and downs in exchange (EXCHANGE RATE) also affect. If you don't want to use cash abroad, you can also use prepaid card (PREPAID CARD) instead of credit card.
3. Do not use more than 30 percent
As soon as people get a credit card, they start using it indiscriminately. Many people do not even remember that they are spending more than their credit limit on credit cards. If you spend more than your credit card limit, the company will charge you for that too. Few credit card holders do not know that if they use more than 30 percent of their credit cards, it also affects their Cibil score.
ક્રેડિટ કાર્ડનો ઉપયોગ કરો છો તો ભૂલથી પણ ના કરતા આ 5 ભૂલો, નહીં તો માથે પડી જશે મોટી ટાલ
4. Be careful while paying bills
Credit card users are aware that there are two options for paying the bill, one is the total amount due and the other is the minimum amount due. Minimum amount due is less money. But avoid opting for low dew. Paying the minimum amount due will not only block your card and you will be able to use the credit card even after the due date. But by doing this thing you may have to pay more interest from the bank. Henceforth, when you pay your credit card bill, choose the Total Amount Due option so that you don't have to pay more interest. Be aware that credit cards can charge up to 48 percent interest over the course of a year.
5. Don't take too much credit to pay off debt
Many credit card users have a balance transfer facility. That means they can pay any other credit card bill from their credit card. However, the user also has to pay some interest for this. Sometimes doing this can prove beneficial in times of tight cash. But this does not mean that one card should be billed by another, then the third by another and the fourth by the third. By doing this your CIBIL score will deteriorate.
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