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Credit Card Do’s And Don’ts: How To Use Credit Card Wisely

Rather than a boon, credit cards are often considered as a bane by most individuals. Many people think that instead of benefiting them, credit cards will make them end up in debt.

It goes without saying that credit cards could be of great help to you any given day, provided that you use them wisely. If you have a credit card and are not using it, or if you are stressed with the overspending habit of yours while using your credit card, then we can help you with that. Read on to find out credit card do’s and don’ts and learn how to use credit card wisely.

Credit Card Do's And Don'ts

Credit Card Do’s And Don’ts

Following are the do’s and don’ts that you must consider while using a credit card. These will help you stay out of trouble of overspending and not spending at all with your credit card.


1. Say No To Daily Purchases Using Credit Card

Making everyday purchases such as food, movie tickets etc. using credit card is not considered as a good practice. Don’t use credit card as a substitute for cash for daily purchases. Since instead of helping you, it will leave you in huge debt.

2. Don’t Exhaust Full Limit Of Your Credit Card

It is advisable to exhaust only 30-40% limit of your credit card every month. Not only it will avoid you from overspending but also help in improving your CIBIL score.

3. Don’t Keep Too Many Credit Cards

Having 5-7 credit cards shows your credit hunger. You can instead use 2-3 credit cards with high credit limit and make their payments on time to improve your credit score.

4. Don’t Pay Minimum Amount Due

If you continue to pay only minimum amount due on your credit card, you may have to bear huge interests in future. Try to pay as much as you can each month to avoid bearing penalties and interests in future.

5. Don’t Use Credit Card When You Have Cash

Many individuals take credit card as extra money. They forget that they will have to pay for it in future. If you have cash in hand, then it is advisable to use cash instead of credit card.


1. Make Timely Payments

Make sure you make your credit  card payments on time. If you don’t make your payments on time, it will have two negative impacts. One- you will have to bear huge interests, Two- it will spoil your CIBIL score.

2. Review Statement

Make it a practice to check or review your monthly credit card statements. Check each transaction of monthly statement. In case of any authorized transaction, contact your bank immediately. Also check that you have been charged right amount for every transaction that you have made.

3. Negotiate

If you have good record with your bank, then there is no harm in negotiating for a lower interest rate. If you find that your current rate is higher than what other banks are offering, then also you can consider negotiating for a lower interest rate.

4. Be Cautious

Make your payments on time and make sure you don’t exceed the credit limit. By  not doing so, you may have to bear huge interest and penalties. It will also negatively impact your credit history.

5. Let Your Bank Know That You Won’t Be Able To Make Payment On Time

If you think that you won’t be able to make timely payment for the month, then let your bank know about it. Talk to the credit card company and they will try to find a solution for the same.

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Also Read: How To Get Re-KYC Done For Bank Accounts

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