Things You Must Avoid Doing With Your Credit Card

Akshay had just started a job at a multinational company recently. Over the past two months, he saved up a lot of money. He had recently learned that he could build up his credit history with a credit card and was excited to apply for one.

But curious as he was, Akshay decided to consult his banker friend Jacob before applying for a credit card. So, when Akshay invited Jacob home for dinner, he asked Jacob for tips on how to use his credit card better. This is what Jacob told him.

Five Things to Avoid Doing With a Credit Card

  • Missing Payment Dues

Skipping monthly credit card bill payments would lead to an accumulation of bills with high interest. The thumb rule after getting a credit card is to repay the due amount on time. Furthermore, it is important to contact the card operator and set up auto-payment of credit card bills. This way, the bill amount would automatically be deducted from the linked account monthly.

2)    Paying Only the Minimum Dues

A lot of new applicants think that they can pay the minimum due on credit card bills and avoid paying interest on overdue bill payments. Akshay was about to make the same mistake. However, paying only the minimum due over a long period could lead to a debt trap. This is because the remaining bill amount would get added to the next month, and interest would get added to it. To ensure that you don’t harm your credit score and end up paying an extra amount, it is necessary to pay the full monthly credit card bill to avoid late-payment fees.

  • Sharing Your Card Information

The rise of online fraud has led to an increase in the chances of credit card misuse. When applying for a credit card, it is important to ensure that you never divulge your details to unknown people. This included –

  • Credit card number
  • Security code
  • Credit card expiry date
  • Username and password to access the banking account
  • CVV (Card Verification Value)

4)    Withdrawing Cash Using Credit Cards

While almost all credit cards allow cash withdrawals, the facility often comes with withdrawal limits, depending on the bank. In addition, some banks also levied charges on withdrawals above the limits. So, it’s recommended that you avoid cash withdrawals using your credit card.

5)    Closing the Credit Card

Even if you don’t use a credit card, avoid making the mistake of closing it . After all, if a card were closed, all the credit history built using the card would get wiped off too. However, in case you need to do so, make sure you have a good credit score and get in touch with a banking professional who can help you out.


After this discussion, Akshay was confident about applying for a credit card. He decided to perform a credit card comparison and check the credit card interest rates the following day and apply for a card based on his needs immediately.

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