Five Golden Points you should never ignore: Credit Card Usage

                       

When you are using the credit card, you have to follow certain rules to avoid get into troublesome. In the recent study conducted by the Reserve bank of India, about 36 million people are using the credit cards. The increase in the usage of the credit card is due to demonetization announcement from the government. It indicates that people are using the credit cards for their expenses and also to increase their lifestyles. According to the financial planning, it is beneficial and also they can meet their immediate needs without waiting. Moreover it is having number of risks while using the credit card. You can get into the debt trap when you are using the credit card beyond your limit. You can avoid this by following the golden rules to make the most of your credit card.

1. Clear your dues then and there

Within the particular period of time you have to clear the dues. If you don’t follow this, then you may face the debt. And also the amount of interest increases and you have to pay fine after eh due date. Now the payment amount increases more than before without usefully. You will get into trouble by the pending dues and still you use credit card for the fresh purchase. Therefore to avoid all these unnecessary problems, pay the amount before or on due dates.

2. Dont exceed more than 30% of the credit card

The second golden rule is try to not exceed the credit card limit. Follow the credit card limit by the bank and from this amount spend only 30% of the amount. Lower credit score will be given to the higher utilization of the credit card.

3. Check for annual fees

Before applying to the credit card Check This Out, if there is any extra charges are included in it. Usually in all the banks the joining fees and the annual and late payment fees are collected f rte credit cards. Apart from this any additional charges are included means it will increase your expenditure.

4. Have high credit score

In order to get loan or to apply for another credit card, it is essential to have the increased credit score. It is considered as a free pass to avail benefits from the banks.

5. Wise use of EMI facility

The last golden rule is, your credit card have the EMI facility where you can use it for big purchases such as TV, refrigerators, etc.