What is a credit card?
It is commonly known as plastic money that is used instead of cash. A credit card is used to buy any product on the market on credit. It has 16 digit no., CVV no. and a unique pin no. which must be kept secret by the user.

It has replaced bills and found a permanent place in our wallets; however, it is an unsolved mystery to many and therefore leads to hundreds of complaints about excessive charges as it is not well understood despite the fact that banks provide users with all the necessary information in the form of “terms and conditions” printed that come with your card kit.

Users often have mixed opinions about a credit card. Some users are very satisfied with these, while others are so irritated that they strictly deny having one in the future. We are going to discuss here on the same topic.

A credit card usually comes with benefits and some fees that aren’t really hidden. Like different cards, they come with different annual fees, late fees, and other fees. But when a person applies for a card, he often only sees the benefits and no other rules and regulations. Somewhere there is also the seller’s fault, since he cannot properly guide the customer. Which results in negative feedback from him. So is there any solution to this problem? Yes, of course, a little attention can save you from unnecessary charges. What you should do now is read these important tips to follow to play safe with credit cards.

Anyone requesting it should be aware of these facts:

– There is a due date mentioned on the invoice statement. You must pay your bill before this due date to avoid late fees. All banks have different late payment charges like Rs 750 for a month.

– In the invoice statement, two amounts are mentioned, namely the minimum amount due and the total amount due. To avoid interest on your next bill, be sure to pay the full amount due instead of the minimum amount due. Paying the minimum amount due will give you a low bill score and unnecessary charges on your bill. These charges vary with the bank and can be 3-4%

– All cards have a fixed billing cycle and payment date. So, don’t forget to manage your expenses to pay the bill on time.

– Always check your account statement. And if you think it needs to be fixed, do it within 60 days.

– Always remember your credit card number. In case it is lost, it is easy for you to quickly report it to the bank. Also, it can be easy to buy online because you won’t have to take it out every time. However, at the time of purchase you also need CVV no. and expiration date. But it’s good to remember your credit card number.

– Consult the annual charges and other commissions of the bank when requesting a credit card. All banks have different fees and charges that you should check. This will help you know your credit card and upcoming charges. Therefore, you would not be surprised by these fees and charges.

– Credit cards come with certain points and a rewards program. These points are converted to the value as in some cases 2 points = Rs.1 while in some it is like 4 points = Rs.1. You need to know about these reward points to redeem them later.

– Check that it is your bank that grants you cashback with purchases. Refund means that the refund amount for which your card is responsible will be cashed back into your account at the time of the billing cycle. The value of the refund is debited from your account on the statement. This is a nice feature and will help you save every time you shop. For this, you must check what your credit card offers.

– Do not use the full limit of your credit card, as it can cause a loss in your credit score. To maintain a healthy cibil score, you don’t need to spend more than 50% of your credit limit.

– Do not use your card to pay another credit card bill or any other debt. It will lead to poor financial health. Instead, you can apply for the personal loan that is easily available at a very low interest rate.