If you are using credit card for the first time, do not make these 5 mistakes, credit profile may get spoiled
One should be careful while using a credit card. Otherwise, it can have a negative impact on your credit profile. In this article, we are going to tell about five mistakes that are often made by first-time credit card users.
In today's time, a credit card is easily available to all people. If you have a salary account, then banks give you a credit card even without any credit score, but in the first or second month of getting credit, people make some such mistakes, due to which their credit score goes down rapidly. Today we are going to tell you about those mistakes in this article.
Many times it is seen that people using credit cards for the first time overuse their credit limit. Because of this, their credit score drops rapidly. For this reason, one should always use the minimum credit limit while using a credit card. This is its advantage. Improving your credit card score. A credit score of 750 or above is generally considered good.
If you withdraw cash from an ATM through your credit card, then its effect is very negative on your credit profile. This lowers your credit score. With this, you have to pay an interest of up to 50 percent per annum on the withdrawn amount as per the interest rate fixed by the credit card company.
Many times people get it closed if they do not feel well after taking a credit card. This has a negative impact on your credit profile. Closing a credit card reduces your credit limit.
After taking a credit card, its rules should be understood well. Credit card companies charge hefty fees for overseas transactions. In such a situation, if you are doing any foreign transaction with a credit card, then read all the rules carefully.
While paying the credit card bill, two options are given - full amount payment and minimum amount payment. Out of this, you should click on Full Amount Payment. With this, you get to pay the bill in full and there is no outstanding balance.
