The ultimate guide to using your credit card wisely

Nov 5, 2024

By: BI India Bureau

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Pay the full balance monthly

Always try to repay the full balance on your credit card each month. This helps you avoid interest charges on any remaining balance. Additionally, it boosts your credit score and keeps debt manageable.

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Track spending regularly

Regularly monitor your transactions to prevent overspending and avoid surprises on your bill. This also helps you stay within your budget and identify any fraudulent charges.

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Utilise rewards wisely

Select a card with rewards that fit your lifestyle, like cashback on groceries or travel points, to maximise benefits. Additionally, use your card for purchases you would make anyway to earn more points.

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Avoid cash advances

Withdrawing cash using your credit card incurs high fees and interest. Only use this feature in emergencies to avoid accumulating costly debt.

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Plan your repayments before the purchase

Before making a purchase with your credit card, ensure you have enough funds or a solid plan for how you will repay the amount.

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Set alerts for due dates

Set reminders to avoid missed payments, which can lead to late fees and negatively impact your credit score.

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Keep credit utilisation low

Use only a small portion of your credit limit (under 30 percent) to improve your creditworthiness and maintain a good score.

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Review statements for errors

Regularly check statements for unauthorised charges or errors to promptly dispute them, safeguarding your finances and credit.

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16 million credit cards purchased in FY 2023-24, UPI payments up by 42%: PwC report