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How to use a Credit Card

How to use a Credit Card?

Credit cards are an important financial instrument that must always be used wisely. Credit cards offer flexibility and convenience. However, careless use can often lead to unnecessary financial liabilities and debt. Hence, in this article, we will guide you on how you can use a credit card responsibly.

10 Helpful Tips on How to Use you Credit Card Responsibly

  1. Know Your Credit Card Terms and Conditions: It is advisable to thoroughly read and understand all the terms and conditions before using your credit card. You must know about the card fees and charges, like the annual fee, joining fee, the interest penalty charges, and so on.
  2. Create a Budget: It is advisable to create a monthly budget that helps you keep track of your income and expenses. Make sure that your credit card usage is in accordance with the budget you have set. You must also avoid unnecessary spending with the card to attract credit debt.
  3. Pay Balance in Full: You must always aim to make the full payment on your credit card rather than making a partial payment. This will help you improve your credit score and also reduce the interest that would be levied otherwise.
  4. Duly Check Credit Card Statement: You must regularly check your monthly credit card statement to rule out any unauthorised or fraudulent transactions. Immediately report these transactions to the bank, if any.
  5. Be Mindful of Credit Usage: It is advisable to keep track of your credit usage so that you don’t overspend against the credit limit. Going over the credit limit will negatively harm your credit (cibil) score if you fail to make the payment on time.
  6. Make Payment Before Due Date: Always make sure to make your credit card payment before the due date, as this will improve your credit score. Late payments will not only attract late penalty fees but also harm your credit score.
  7. Make Payments at Authorized Merchants: Be vigilant about making payments via unauthorised merchants or fraudulent websites to avoid any kind of scam. Making payments through authorised merchants and websites will eliminate the risk of misusing your credit card.
  8. Redeem Cashback/Reward Points: If your credit card offers you cashback rewards or points, make sure to use them wisely. You can redeem these points to avail of discount offers on hotel stays, travel tickets, shopping, and other categories.
  9. Choose Right Credit Card: Make sure to choose a credit card that is in alignment with your needs or preference. For instance, if you are a frequent traveller, it is advisable to opt for a travel credit card so you can maximise travel discounts and other benefits.
  10. Seek Professional Guidance: In case you are struggling with credit card debt, don’t hesitate to seek professional financial advice. Credit counselling services can provide guidance on creating an ideal financial plan for you.


It is advisable to always be vigilant and prompt when it comes to credit card spending and making payments. By following these guidelines, you can maximise the benefits offered by a credit card while also mitigating its potential risks.

Author Bio

This article is written by Team, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.

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