Credit Card:
As much as it is beneficial to use a credit card, it also bothers many times. If the credit card is not used correctly and thoughtfully, it also causes loss.
However, when there is no money in the emergency, it also comes in handy, but indirect drawbacks are also attached.
Credit cards have many such features, ignoring which can bother you. In such a situation, paying attention to these things is essential.
You can face problems like high-interest rates due to delays in credit card payment, account blocking due to payment default, and getting trapped in a debt trap.
You can avoid loss by using these tips. So, the credit card proves to be an asset for you and does not become a liability. Credit card users can use it in the best way.
Credit card charges maximum interest
An interest-free period of 40-50 days is available on a credit card payment. But a problem comes when you can only pay the bill on the due date.
After this, the bank charges an interest of about 30 to 36 percent from you, and a late payment charge is also imposed, which is around 400-600 rupees.
In such a situation, the money you were using for free can become very expensive due to your carelessness.
Bank account blocked
If your savings account and credit card bank is the same, then the bank can block the amount in your account for non-payment of the credit card.
That is, you will not be able to withdraw or transfer money from your account. This affects the CIBIL score.
However, ensure that your bank account and credit card do not belong to the same bank.
If, by mistake, you do not pay the credit card bill for 2-3 months; your bank account will be allowed.
Debt trap
A credit card can become a threat to those who do not control their shopping with a credit card. You can also get trapped in a debt trap.
The user feels that without investing money, he can quickly fulfill his and non-essential needs. If you miss paying this bill, you can get trapped in a debt trap.
Saving becomes difficult due to the excessive use of credit cards.
Spending with a credit card is easy. In such a situation, there is a habit of spending more. This directly affects your savings.
If you also do this, you must use a credit card based on your payment capacity. This will not affect your savings.
I must see these things when my credit card bill comes
Check the bill to see whether the bank has imposed any extra charge.
If any payment has been converted into EMI, is it adjusted or not? Whether cash back and reward points are updated in the bill, etc.
