Its a no brainer that credit cards are a quick and easy way to pay for both planned and unforeseen expenses without having to ask friends for money or apply for a personal loan. They can, however, hurt your credit and cost you a lot of money in high interest charges if you use them improperly. 

Here, we’ve provided a list of the most typical credit card errors and unhealthy habits people make. We have also provided helpful advice on how to avoid them.

Read the fine print to avoid regretting later

All of us make the serious error of skimming the small print and failing to attentively read the terms and conditions in a document. The fine print, which is often included but that most people ignore, very likely contains some unstated terms and conditions or even fees. When outlining some of the IDFC Credit card fees, the salesperson might not be entirely truthful in order to close the deal and meet their sales goal.

The next time a commercial for something claims to offer a lifetime membership that is free, find out more about it to determine if there are any additional fees. Find out the interest rate, late payment penalties, and withdrawal fees in addition to the annual cost. Knowing these costs in advance will help you avoid making a sizable payment that will harm your credit score when it comes time to pay off your credit card balance.

Just choosing any card that comes your way

Everyone is aware that there are many different credit cards available and that offers for credit cards vary between banks and depend on a number of different factors. Due to the abundance of options, selecting the best IDFC Credit card is more difficult for consumers.

Result? They choose the incorrect credit card as a result of the influence of the commercials. To combat this, analyse your spending patterns and match them with the benefits and features provided by different credit card issuers before finalizing any. 

Just the bare minimum payment of dues is needed

The security of being able to finance crises if necessary is provided by having a credit card, but some of us fall into the trap of spending more than we earn and can repay. We occasionally run the risk of accruing debt that we are unable to pay off by the due date. Result? We make the mistake of only making the minimal payment necessary and fall into the trap of only making the minimal payment owed. Most of us are unaware that the bank will continue to charge interest on the outstanding balance even after the balance has been paid in full. Due to the frequently extremely high interest rates associated with credit cards, your balance due will inevitably rise over time. Make sure you pay the IDFC wealth credit card bill before the due date to prevent such situations, even if doing so means putting off some discretionary expenses. As a result, requesting a credit card won’t lower your credit score.

Maintaining monthly outstanding balance in the bill boosts credit score

As crazy as it may sound, some people believe that increasing their IDFC wealth credit card usage will raise their credit score. The myth is exactly that. The short as well as long-term financial costs of carrying a debt will lower your credit score and attract lots of costs. Also, as a good credit score is needed to apply and get a IDFC Credit card, having an outstanding balance will lower that score and approval chances. 

So its best to pay the bills on or before the scheduled due date, and have a lower credit utilisation rate as that is good for your credit score, according to experts and credit bureaus.

Making late payments on card bill

If missed payments occur unexpectedly on IDFC Credit card, they will lower your credit score more. If you miss the credit card due date, be prepared for a few points to be deducted from your credit score. You might also be assessed a late fee or penalty interest rate by the bank. If you don’t pay your bills on time, your bank might deny your request for a credit card, which will damage your credit score and prevent you from being accepted.

Maxing out your card limit

Using the majority of your available credit is never a good idea. This includes utilising all of the credit that is available on your credit cards. If you have a high utilisation rate, credit bureaus will also perceive you as being credit-hungry. If you regularly use your credit card to the maximum without having any problems, call the bank and ask for a credit line increase; otherwise, your credit score for credit cards will keep falling.

Withdrawing cash from card

A cash advance is one of the most expensive things you can do with your credit card, despite the fact that it might seem simple to be able to get some cash. The moment you withdraw money, interest is charged on that amount. The IDFC wealth credit card cash advances may also be subject to additional charges. While some banks impose a flat fee, others charge a percentage of the withdrawal amount. Your one-time cash advance fee will be set by the bank as a percentage of the money you withdraw.

Final words

Remember that credit card usage abuse is a common problem that needs to be stopped in order to lessen long-term financial stress. Additionally, developing the habit of using your credit card responsibly is simple. By putting your credit card on auto-pay to ensure timely payments, responsibly using your IDFC Credit card to avoid damaging your credit score so you can obtain a credit card, spending no more than 30% of your credit limit each month, paying close attention to your monthly statement, and using credit cards responsibly, you can get the most out of your credit card and enjoy loads of its benefits!