Swipe smart: Credit Card habits that keep you out of debt

Simple ways to avoid credit card problems and benefit from using them. By keeping track of your limit, choosing the right card, and paying your bills in full, you can avoid financial trouble.

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Small Tips - Big Help

Almost everyone has a credit card these days. Data suggests over 80% of bank account holders have one. Many struggle to manage them. A few simple tips can help you avoid credit card trouble.

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Don't Exceed the Limit

People who exceed their credit card limits are the first to get into trouble. It's best to know your limit and use only 30% of it. Paying your bill in full on time improves your credit score.

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45 Days Interest-Free

It's best to avoid cash withdrawals on your credit card. You get 45 interest-free days only on purchases. Cash withdrawals incur fees and interest from day one.

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Choose What You Need

Credit cards are a type of loan that banks eagerly offer. With regular, premium, business, and cashback options, choose the one that suits your needs.

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Pay Your Bill on the First

It's best to pay your credit card bill in full by the end of the month. This protects your credit score. Pay promptly, as the credit report is recorded on the first of the month.

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Penalties Apply

Understand all terms and conditions, including joining fees, annual fees, late payment fees, interest rates, and GST. Use your credit card accordingly.

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Don't Believe Empty Promises

Most cards have annual fees, especially those with rewards, cashback, travel, and airport lounge access. Be wary of "lifetime free card" offers.

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Extra Charges - Be Careful

Some stores add a 2% surcharge for credit card payments. Use credit card UPI instead, but only RuPay cards can be linked to UPI, not Visa or Mastercard.

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Late Fees Can Spiral

Minimum payments can lead to high interest (over 35%), compounded interest, GST, and late fees, adding up to a large bill.

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Pay Your Bill in Full

Minimum payments and EMIs incur interest, GST, and processing fees. It's best to pay your bill in full whenever possible.

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Hidden Fees - Be Alert

Many use credit cards for reward points, even for purchases they could afford in cash. Some cards charge fees to redeem reward points for vouchers.