Let’s face it that credit cards are now one of the most important financial tools that a large number of people in India are using. So, if you don’t have one you should definitely get one as soon as possible. That said, having a credit card has its own set of pros and cons. Hence, in order to gain all the positives from your possession of a credit card, you can follow the below mentioned tips.
- Don’t use more than 40% of your credit limit: This ensure your dues are well under your pocket to afford. However, if you want to go over 40%, it would be better to ask your lender for raising your credit card limit. That way you’ll be able to spend more without affecting your score.
- Pay your dues on time and in full: Even though the minimum due balance features is always there, it should be your last resort. Because when you opt for minimum balance due, the remaining amount keeps on increasing your overall liability due to the monthly interest charged on it. Hence, if you are using a credit card, have enough cash reserve to pay dues in full.
- Convert your big purchases into EMIs: If you are buying expensive items such as TV, refrigerator etc. convert the purchase into EMIs. Bigger expenses done using credit cards would be difficult to settle. Thus, it is always better to convert them into EMI to avoid additional interest charges.
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