5 things to know before you swipe your credit card

while credit card provides reliability and convenience, it’s important to address the potential risks associated with them. the additional charges weigh heavy on the users, and they often find themselves receding in a debt trap. through this article, we'll take you through some important factors that you should consider before you swipe your credit card.

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Things to be aware of before you swipe your credit card

budget planning
having a credit card can be overwhelming, especially when you start spending. most credit cards offer interest-free credit for a brief tenure which gives scope to unplanned spending as well. the pleasure of unconscious spending often makes you forget about its repaying plan. this eventually will add up to your financial burden. thus, it would be wise to budget your expenses before you go out and spend all that money.

offers & promotions
most credit card providers offer certain promotional schemes with cashback and reward points. such offers can be discounts at restaurants, movies, or other cashback programs.

cash withdrawal charges
most credit cards come with a cash withdrawal facility. while this is convenient, there is always the underlying fine-print associated with it, thus making it important for you to go through and fully understand charges before utilizing it.

credit card bill payment & credit score
a credit score is essentially a 3-digit number that measures the health of your debt and repayments. it is an indication of how responsibly you repay all your dues. if a cardholder fails to make the credit card bill payment on time, it can impact the CIBIL score negatively.

EMI payment option
every credit card has the option of repayment through EMI. when you have made a high value payment, this option might seem as one that is viable. having an option of EMI gives the flexibility of paying the total sum in smaller instalments. not only does it help with your budgeting, but it also lowers the interest rates.

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