Top 5 Instances When You Should Avoid Credit Card Swipes

The credit card or the plastic money is an extremely powerful financial tool and must be used carefully – so that it will bring you a host of benefits. Otherwise, it can literally turn your life upside down. There could be plenty of reasons for using a credit card, such as convenience, accountability, safety, etc. But we at CreditVidya.com have compiled a list of top 5 instances when you should not use your credit card. For these cases, cash, debit or anything else would be a better option. Check out when you should never use your credit card in order to avoid a dent in your CIBIL score. These include:

Medical bills: Never use your credit card to fund your medical expenses. Mediclaims are meant to do that. Insure yourself and your family adequately, so that you don’t have to run around hunting for funds when your near and dear ones are unwell or in an emergency.

Taxes: Never use your credit card to pay your taxes. That’s a grave mistake people in the developed economies make. Let us learn from their mistakes.

Educational expenses: Do not pay your college tuition fees or admission fees using your credit card. Use your earnings or take an educational loan for that. You can also borrow from your parents.

Vacations: People pay for such superfluous expenses using their credit cards, which may easily run into lakhs if they are vacationing abroad. Invest in a recurring deposit instead and use that amount towards funding your foreign trip.

Wedding: While most Indians still use their parents’ funds to get married, many of them have started using their own resources while tying the knot. Make sure that you do not swipe your credit card to fund your wedding expenses. Instead, use your savings or earnings. Along with the wedding, comes the honeymoon, an added expense – so be prepared for the same.

Rajiv Raj is the Director and Co-Founder of www.creditvidya.com
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