In my view, credit card is plastic money which can be easily used anytime, anywhere. But just as everything has advantages, there are also disadvantages. But credit card is such a plastic money or approved money card which can help you in one stroke or can even turn you into a cedar in one stroke. Sometimes we cannot understand the business tricks of the credit card providers and within a short time we have to pay double the money used and this loss is very big for us. I have some tips that tell us what mistakes we should not make when it comes to credit cards.
The credit card provider first makes us understand what is the use of the credit card. Despite us not wanting it in our lives, credit card providers think we desperately need it and tempt us with their sweet words. Ultimately they give us a credit card so that their business target is achieved and they get a new customer who can use a large amount at one go and keep paying for many months. So this is their business target and we get caught in that trick. Then we are given good shopping offers and a big discount promotion. There is a second step when we fall into another trick. A big amount is fixed in the purchase and we have to make minimum purchase of that amount. On the other hand, we also want big discounts, hence we shop for huge amounts. Then we keep paying EMI of that amount for months because our salary is also limited and we cannot pay so much money at one go. So in this way we get trapped in the tricks of offers and discounts. So, it should be avoided as long as possible and one should act judiciously.
Keeping 3 or more credit cards simultaneously should be avoided. Because if there is some physical problem in one card or your card is not working properly, then you do not face any problem on the spot, hence you can keep 2 cards so that if your primary card does not work then you can use the secondary card and your Get the work done. By having too many cards, you may be unable or forget to pay the monthly EMI or bill. You may also have to face annual fees if you have too many cards at once even when they are not in use.
Unless possible, do not withdraw money from your credit card. I have seen that due to salary delay, many people withdraw up to 50% of their credit card limit, which is enough to make you a cedar. Therefore, we should stop money withdrawal as long as possible because it will affect our CIBIL score in some way or the other and we may face problems with CIBIL score in future. In case of money withdrawal, there are some banks which charge interest up to 30% which is quite high. So these are also reasons for not withdrawing money from credit card.
So this was the basic advice from my side which I have collected by doing gap analysis among most of the people. I am not saying that we should not use credit cards, rather I am saying which measures we should take which can save us from financial loss. With increasing business targets and attractive incentives, sellers will explain to us many ways to sell and the marketplace will tempt us by giving discounts, but we should not forget our status and should spend as per our income.
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