7 Golden Rules About Credit Card that you Should Know by Heart


A credit card is a great convenience tool; it empowers the user with a wide variety of options. It helps in the convenience of purchase by providing lump-sum settlements at once. If used responsibly, it can be of great help to the users as it offers smooth and hassle-free transactions against their line of the monthly credit limit. This magical card, when not used properly, can cause nightmares to its users. It is suggested that one should always use their cards wisely, whether they are new users or a frequent credit card user. Seasoned users can explore the best credit card options here. Given below are 7 golden rules one must know by heart:

7 Golden Rules About Credit Card that you Should Know by Heart

1. Try to keep no outstanding balance: Every credit card user must abide by this important rule and try to keep a minimal to no outstanding balance. When using a credit card, the company gives its users a few days of interest-free grace. If the balances due to the company are paid off during this period, users don’t have to worry about paying any interest charges, while also having the ability to rotate their cash for a few days.
However, this benefit can only be availed if the dues are settled in time. If left unpaid, the outstanding balance gets accrued with high-interest rates which might prove to be a trouble for the user’s pocket.

2. Never withdraw cash from your credit card: Users are advised to never use their credit cards for withdrawing cash from the ATM. Unless a user has chosen from one of the best credit card options in India in terms of interest rate and is under urgent requirement for money, they might get a shock when they repay their bills with a higher interest rate. Lastly, you don’t get an interest-free grace period on your credit card cash advances, so it is not a feasible option to go with.

3. Report lost or misplaced cards immediately: In case any user ever get their credit card misplaced or receive any text that notifies them of an unknown transaction that has been debited to their credit card, it is advised that the user immediately call their credit card company to block the card, as they might be charged for transactions that they never did.

When a credit card gets lost accidentally or gets into the wrong hands, the hard-earned credit can end up being at zero in a matter of time. Though, users have the opportunity to prove dubious transactions; it will, without a doubt, be a long process to go through. It is always advisable to be on the safe side by reporting lost or misplaced credit cards.

4. Always check your card statement thoroughly: It is a common sight for any credit card user to receive statements that come with countless transactions. Credit card companies are known to send their customers with statements that might include a purchase billed twice. It might go overlooked, and users will never find it out unless they are careful.

Moreover, if a credit card is used for recurring payments, for facilitating online services, users might lose an account of the interest charges. Having a thorough look at credit card statements ensure users to stay alert about their monthly expenses and be safe from purchases or charges that might have been added to their account.

5. Ignore the minimum payment trap: Many users find this as a feasible option where they get a chance to pay a minimum amount on their monthly credit card bill. Users must know that this minimum payment option is not the complete settlement of their bill but a part of it. Every amount that is left uncleared on the present bill is added up, and the companies charge a hefty amount of interest on them before settling off the user’s account.

6. Never reveal your credit card information over email and phone: It is always advisable for the credit card users to never disclose any information on their card. There are a lot of scams related to credit card these days, the identity thieves are known to gather the cards information and make fraudulent transactions which the card owners are unaware of.

One can always be on the safe side by not providing their card details over phone calls and emails that claim to be from their credit card company.

7. Don’t sign up for every credit card you are offered: Users of a card with decent credit score often receive pre-approved credit card offers. This doesn’t necessarily mean that they sign up for every card that comes in their way.

So, while exploring your best credit card options ensure you don’t divulge any personal information or sign up for every credit credit card offer that comes your way.

If you need another credit card, it is essential to first read through the various invitations received and figure out the best benefits. This in turn will help figure out the best credit card options out there for you. The vital factors must always be considered as signing up for multiple credit cards don’t increase your creditor base, and it can also negatively affect the credit score.


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