A credit card may prove to be a friend in need for you. All you need to do is use it smartly.
09:24 PM IST
PhonePe launches Visa powered unique one-click debit, credit card payment feature
New rules! Have debit card, credit card? Very important message for you
Add-on ICICI Bank credit card: What are its benefits and how to apply for it
ICICI Bank ATM: Using your debit card or credit card? Do this for sure or you will fall prey to card cloning, skimming scams
Debit, credit card alert! This feature to be discontinued from March 16Credit Card Myths Debunked: There are several myths about credit cards in circulation. While many people are of the opinion against getting a credit card, many feel it increases their monthly expenditure. India has over 40 million credit card subscriptions. Don't confuse it with the number of users as one person may have two or more cards. A credit card may prove to be a friend in need for you. All you need to do is use it smartly. Here are five myths that people generally have about the cards:
Credit Card Increases Your Expenditure
Are you for real? Experts advise that one should never exhaust the limit of their credit card. You should use a maximum of 20-30% of your credit and that only when you have to make some emergency expenditure. If you can meet your ends with your income, don't use your credit card. You must exercise maximum restraint while using your credit card.
Applying for a credit card spoils your credit score
If you are applying for your first credit card, you will have to face a 'hard credit enquiry'. Even if your profile doesn't fit the bill of the credit card provider, that doesn't mean your credit score is bad. However, too many applications may have a significant effect on your credit score, but a single inquiry is unlikely to affect your score by more than a few points, explains the HDFC Bank on its website. Good payment history on the new card swiftly boosts your credit score, it adds.
Don't accept credit limit hike if not required
Banks offer to increase the credit limit of a user with good payment records. You should go for it even if you don't require it. You should consider a credit card as an emergency or contingency fund. The more you have, the less is the chances of your suffering.
Make your Credit card settlement quickly
A credit card comes with a fixed cycle of bill generation and due date. It is widely accepted that you should pay due amount in full every single month, but carrying forward a small balance sometimes may be better for your score than none at all.
Watch This Zee Business Video
Having no credit card is good
Many people believe that one should not get a credit card and just use their debit or prepaid cards. However, this is a wrong assumption. Suppose, you are short of money and desperately need some till your next salary. Isn't it better to have a credit card rather than asking someone else for help? It is quite possible that the other person may not be able to help you at that moment but a credit card will definitely be of a great help.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
