Credit Card Rules: Three Important Things To Keep In Mind While Using Credit Cards

Credit Card Rules: Credit cards have started becoming a new trend, just as debit cards did before, because many banks are now offering reward points and cashback offers. But did you know that people often make mistakes while using these credit cards? Worry not, as we have come up with some tips to keep in mind while using credit cards. Here are those important things:

Hidden Charges

Credit card reward points and cashback offers attract a lot of users. But there are many types of hidden charges and fees that people may not be aware of. So, before you start using your credit card, read all the documents and online instructions carefully. Go through the policies regarding penalties for late payment fees and not being able to make payments on time.

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ATM Withdrawal Fees

It is generally unwise to use a credit card at an ATM for cash advances due to high fees and high interest rates that can also negatively impact your credit score. These interest rates can range from 2-3 per cent of the amount withdrawn.

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Use Only Up To 30% Of The Card Limit

Usually, banks give up to Rs 1 Lakh as the limit for using a credit card. But if you limit yourself to spending only 30 per cent of this limit, you will not exceed it and thus prevent hefty penalties later.