What Are 10 Important Things That You Should Know If You Use A Credit Card Regularly?

By: Alex James

Most economies worldwide are transitioning to a digital economy. Even in India, plastic money is being accepted and used regularly. With the use of a credit card, you can make purchases of goods and services. Despite the interest and fees attached to them, credit cards are now being used for many other types of purchases. 

Credit cards are easily accessible and can be repaid with convenient EMIs. They also provide access to a plethora of rewards and discounts. You can also have a free CIBIL score check to see the benefit of credit cards on your credit score.

There are 10 things you should know before you start to use credit cards regularly, such as the following: 

Making a Timely Repayment

A single missed or late payment might have significant consequences. It may result in penalties such as late fees, interest charges, and, in some situations, a greater APR. In addition, missed payments may lower your credit score. You can always go for a free CIBIL score check to help you maintain a good score. It could make it more difficult for you to receive loans in the future with low-interest rates. 

Card Utilisation Ratio

Avoid reaching the credit card’s limit. Your credit utilization ratio can go up when you do this regularly. Your credit score will be negatively impacted by an increase in this ratio, particularly over the long term. The banks and other financial institutions will start to label you as “credit-hungry” if your credit utilization ratio increases significantly. 

Avoid Withdrawing Cash 

Credit cards let you buy goods and services and enable ATM cash withdrawals. There is no interest-free period when you use a credit card to withdraw cash. From the withdrawal date, you will be charged interest ranging from 24% to 48% p.a. When withdrawing cash, it is better to use a debit card to avoid incurring excessive interest charges.

Credit Score

Your credit score is calculated using information from your credit report, and it is used to determine how dependable you are when repaying debts. Higher credit health will benefit you later when you want to make bigger transactions that might require loans or several credit cards. Many banks offer free CIBIL score check facilities via mobile apps and internet banking.

Using the Interest-Free Period

Credit card interest rates are greater than loan interest rates, and there is a limited free period to pay off the remaining balance. Credit cards are widely available, which could attract excessive spending. If you have a severe need for credit, look into other options like a personal loan or bank loan. These loans have lower interest rates than credit cards do.

Reward Points

The greatest thing about having credit cards is that they offer a good amount of benefits in return. A careful and educated user will constantly be alert for such deals and tend to save money. Even collected reward points could be spent on particular goods.

Regular Check of Credit Card Statement

Your credit card statement includes all fees, interest, and charges the credit card provider charges. This document should always be checked often by you. You must notify the credit card provider instantly if an unrecorded component is discovered. When used carefully, a credit card can be highly beneficial. It not only saves you money, but it also increases your credit score and profile.

Getting the Right Card

There are multiple kinds of credit cards on the market. More than everything, consider your lifestyle and decide which type of credit card will work best for you. Innumerable credit cards are available, providing a wide range of advantages and rewards. Some providers offer tips for booking flights, while others provide cashback on petrol, etc. 

E-Wallet and Card Combinations

Some e-wallet providers have partnered with banks to provide a credit term with no interest on funds transferred to the smartphone e-wallet. You can save even more money by taking advantage of the perks of credit cards and e-wallets. You can also have a free CIBIL score check using these e-wallets. 

Credit Card Rotation 

If you have numerous credit cards, use them in rotation to keep your utilization ratio under the limit and your credit score healthy. This method will allow you to keep your accounts operational for the long term.


A credit card is among the most convenient methods of payment. Aside from the numerous features and benefits of credit cards, it would help if you always kept in mind using them wisely. Credit cards are a great way to build a good credit score. You can check your CIBIL score on a CIBIL score app available on the internet.

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