Credit Card Mistakes to Avoid People are using credit cards indiscriminately. In such a situation, users make many mistakes which later prove to be costly for them. If you also use a credit card, then this news is for you. In this article, we will tell you which mistakes you should not make while using a credit card.
The number of credit card users is increasing day by day. People’s craze for credit cards is increasing, on the other hand it also becomes a web of debt at times. Actually, people make some mistakes with credit cards which later prove to be a problem for them.
If you also use a credit card, then we will tell you about some common mistakes which you should avoid.
Cash withdrawal
Credit card cash withdrawal facility is available. Many users take advantage of these facilities without reading the terms and conditions, which later proves to be a loss for them. Actually, the user has to pay interest on withdrawing cash from a credit card.
Using credit card excessively
Credit card should not be used for daily expenses. If you use credit card so that it does not put a burden on the bank account, then let us tell you that it puts double burden on the credit card. You spend more while spending on everyday things through credit card. In such a situation, you should use debit card or cash for your daily expenses.
Not setting up alerts
It is important to set a limit on credit card expenses. If the user spends more than the limit, then it directly affects the CIBIL score. In such a situation, financial experts advise that the user should set up a limit in the credit card so that he does not spend unnecessarily.
Spending too much before taking a loan
If you are going to take a loan, then you should try your best to spend less on credit card. If you spend too much, then it can also affect your CIBIL score. Apart from this, before approving the loan application, the company checks the credit card history.
Not reading the terms and conditions properly
While taking a credit card, many users do not read the terms and conditions of the card properly. In such a situation, they are not aware of the interest rate and annual fees etc. Because of this, the credit card user should read the terms and conditions of the card properly before taking the card.