New Delhi : As you know that the festive season has arrived and at this time you are getting discounts on all types of purchases, many major online shopping sites or stores are getting the benefit of special discounts on shopping with a credit card of a particular bank. . In the affair of this exemption, many times we spend more than our capacity, which has to face serious consequences. In such a situation, if you want to avoid any such trouble, then it is important to keep some things in mind.
When you shop with a credit card, always keep in mind that you should shop only as much as you can afford, so that a situation does not arise due to which you have to run on minimum balance payment and in return, a huge amount of interest to be paid as
The minimum due amount is 5 per cent of the outstanding balance, though it does not include EMI. You do not incur any penalty by paying the minimum amount, although the interest has to be paid.
Avoid rushing into luxury items:
The economy is coming out of the Corona Crisis. In such a situation, it is believed that this festive season will be great for the market. Bumper growth in demand is expected. Despite this, avoid buying non-essential items, remember that if you buy luxury items then it can easily be delayed.
Do not make the mistake of withdrawing cash by mistake:
You also get the facility to withdraw cash with a credit card. Although it is quite expensive. In such a situation, do not make the mistake of withdrawing money from the credit card even by forgetting. There are various charges for withdrawing cash and the interest rate is also very high, in such a case, due to one mistake of yours, the total extra amount will increase significantly.
Make good use of reward points:
When you spend with a credit card, you get reward points in return. However, it also has an expiry. In such a situation, keep an eye on the reward points you get from the credit card and keep using it from time to time.
Don’t run after CIBIL score:
Apart from this, also pay attention to the credit utilization ratio. Sahil Arora of Paisabazaar says that sometimes card holders spend too much in order to improve the CIBIL score. If the credit utilization ratio is more than 30 percent, then the credit bureaus keep a special watch on it and can also reduce the CIBIL score.