India has witnessed a boom in credit card spending, especially after the outbreak of the Covid-19 pandemic.

According to the Reserve Bank of India data, in May, the total credit card spending in the country reached an all-time high of ₹ 1.14 trillion. From reward points and discounts to cashback using a credit card, people prefer online transactions these days.

Credit Cards also enable cardholders to spend money without worrying about their bank balance.

However, being careless with your credit card expenditure can also adversely impact your personal finances.

Practices such as delaying the credit card bill payment will not only attract penalties but also impact your credit score. Hence, it would be best to remember certain things before swiping the card.

Here are some tips to help you get wiser with credit card usage:

Check statements

Swiping the credit card is easy, and so is checking the statements. But, many still tend to avoid checking their credit dues and statements every month.

Adopting this habit can help you keep track of your expenditure. This will allow you to spot errors and rectify them before they negatively impact your credit score.

On-time repayments

Paying your credit card bills on time must be your utmost priority. Late bill payments can lead to penalty charges and increase the interest rate on your outstanding bill. Avoid this by setting up reminders for bill payments.

Don't swipe it so often.

Credit cards have some benefits, but swiping them too often can leave a bad impression on your lender.

Relying on your credit card for small expenditures indicates that you depend significantly on credit. This can affect your creditworthiness.

Lenders always watch your credit card transactions and may refuse to approve new loans if you have a huge outstanding credit card.
Source: NDTV