Do you use a Credit Card? Being a responsible Credit Card user means making Credit Card bill payments on time, not exceeding the credit limit, avoiding overspending and more. Here are 9 points to remember while using a Credit Card:
1. Make use of the interest-free period:
Customers who apply for Credit Card usually are entitled to the interest-free period benefit. For instance, you can enjoy an interest-free period of 45 days if you use any ICICI Bank Credit Card and make Card purchases with no interest. This means, if you buy anything during this period, there won’t be any interest charges. However, you need to ensure that the bill payment is made on the due date.
2. Never postpone your Credit Card dues:
It is certainly not good if you postpone or delay the Credit Card bill payment. Rolling on Credit Card dues may land you in a debt trap. Moreover, the interest keeps increasing for non-payment of dues and face late payment charges from the bank.
3. Do not spend beyond the Credit Limit:
A Credit Limit is the spending limit that is set by the bank that varies for every individual. If you have a higher income and a good credit rating, you would be eligible for a high Credit Limit. As your salary increases, you can also choose to increase credit card limit. However, it is not advisable to spend beyond the limit as it will affect your credit history.
4. Avoid withdrawing cash using Credit Card:
If there is an emergency and you don’t have enough funds, you can resort to cash withdrawal using your Credit Card. Else, it is not recommended as there are withdrawal charges involved that get added to the interest charges, increasing your outstanding bill amount.
5. Keep a strict eye on charges:
Do you have a habit of paying your Credit Card Bill without taking a look at the statement? It may not be a good practice as you may end up paying for charges that you are not supposed to. Always have a detailed look at your Credit Card Statement and understand what additional charges/fees are levied by the bank.
6. Keep track of Reward Points:
One of the benefits of having a Credit Card is your scope to collect rewards on every transaction you carry out. Credit Card Reward Points can be redeemed while making new purchases whenever you want.
7. Report immediately if the Card is lost/misplaced/stolen:
If your Credit Card gets stolen, misplaced or lost, inform your bank immediately and they will instantly block your Card after verifying your Card Number and other details. Do not delay in blocking the Card as it may be misused by fraudsters.
8. Pay the entire amount instead of just the minimum:
It is always better to pay the Credit Card bill outstanding amount rather than clearing only the minimum dues. If you are doing the latter, the Credit Card interest rate keeps accruing. Making outstanding bill payments keeps you out of debt and is good for credit building.
9. Never share your Card details:
Do you want to ensure safe and secure transactions? Never share your Card details such as Card PIN, Card Number or any such confidential information with anyone. It is crucial to prevent fraud activities.