Swipe smart: common credit card mistakes that can cost you dearly
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Credit card spending often rises during the festive season, but careless usage can lead to hefty bills and high interest.
- ✓Many people make the mistake of paying only the minimum amount due.
- ✓This trap keeps you on a high-interest loan for years, so use this facility only during cash crunches.
Story at a Glance
- Category
- Indian Markets
- Reported By
- mint
- Reading Speed
- 6 Minute(s)
- Market Focus
- India Economy
Summary
Reward points and a generous credit limit can make spending feel like a win, but unnecessary purchases and high credit utilization may cost more than you gain.
With the festive season bringing attractive shopping offers, discounts and reward points, credit card spending tends to rise. While cards offer convenience and flexibility, careless usage can leave you with hefty bills, high-interest debt and a dent in your credit score. From paying only the minimum amount due to chasing reward points and overlooking hidden charges, here are some common mistakes to avoid while using your credit card.
Paying only the minimum amount due
If you have taken a credit card to tide over a cash crunch, you may have noticed that banks offer the option of paying a 'minimum amount due'. It is usually around 5% of the total outstanding amount and effectively puts you on a high-interest loan.
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