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Credit Cards Can be Your Best Friend if You Avoid These Mistakes

Credit Cards are one of the most popular financial products in the market and are offered by all leading banks in India. Nowadays you can easily apply for Credit Cards online. Credit Cards enable you to make a purchase instantly, online as well as offline, and make the payment later on. Most cards offer an interest-free period also, during which if you make the complete payment, you need not pay any interest on the amount utilized. The limit for Credit Cards is set according to your credit score. It offers you great flexibility to meet any urgent expenses as you have a pre-approved sanctioned limit assigned to it. You can also avail EMI (Equated Monthly Instalment) options with Credit Cards.

Nowadays, with the boom in online retail as well as payment gateways, Credit Cards have become a popular mode of payment. Through online lending marketplaces like MyMoneyMantra, you can Apply for Credit Cards Online and can get best deals from multiple banks. There are always some detractors who portray Credit Cards as the most prominent nemesis of borrowers. Few of their apprehensions might be true to some extent also, but all is not wrong with Credit Cards.

If you exercise a little caution and avoid the below-mentioned mistakes, a Credit Card can prove to be your best friend –
  • Avoid the minimum payment trap: One of the most significant mistakes that you should avoid is making the minimum payment and carrying the balance forward. If you stick with only making the minimum payment on monthly basis, this way, you will end up paying a considerable amount of money as interest only, which might sometimes exceed the total amount utilized. This will put you under a pile of debt which might sometimes be more than your capacity to repay.

  • Do not exceed the sanctioned limit: Credit Cards come with a pre-sanctioned limit which is revised from time to time by the bank. You must keep a tab of your available limit against a Credit Card and make sure that you do not exceed the sanctioned limit under any circumstances. Otherwise, you may have to pay exorbitant charges against the same and ruin your credit score at the same time.

  • Do not make cash withdrawals: Credit Cards come with a pre-approved cash withdrawal limit, but you should avoid resorting to withdrawing cash against Credit Cards. Not only these withdrawals carry a huge rate of interest but also have a negative impact on your credit score. Your banks may reduce the sanctioned limit against your card if you start withdrawing cash regularly.

  • Make payments on time: You should make it a habit of making the payment against the amount due much before the due date. If you somehow are unable to make the payment, you will have to incur substantial penalties and fines. This will also reflect poorly on your credit score. If you cannot make the complete payment, at least pay the minimum amount due to avoid late payment charges. Making payments on time would reflect greatly on your credit rating and your sanctioned limit would also be enhanced by the bank from time to time.

  • Do not pre-close your account: It might strike you that why not close your high interest-bearing Credit Card account to bring your debt portfolio under control. But beware before you try anything of this sort. Pre-closing, your Credit Card account, will have a huge negative impact on your credit score. So rather than pre-closing, you should keep that card aside, do not use it and make payments against the outstanding. This will help you reduce your debt burden conveniently without affecting your credit score.

  • Check your bills regularly: You should keep a close watch on your Credit Card bills. There might be some charges that do not pertain to you or by mistake have been charged to your account. If you face any such issues, immediately get in touch with your credit card provider and ask for the resolution of the problem.
Using a Credit Card judiciously is the key to managing your debt profile. You can avail various offers and discounts with best Credit Card deals online as well as offline and stand to gain a lot but as always exercise due caution before swiping your credit card the next time.

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989. 

Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers. 
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