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Few things you should never do with your Credit Card

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Credit cards are one of the most widely used tools that enable easy and secure payments. Also, you can earn rewards and build your credit score using credit cards. However, in order to avoid turning the medicine into poison, everything must be done with a delicate balance. Here are a few things that you should never do with your credit cards:

1. Not paying your card in full

It is common, but so dangerous, to not make timely payments on your credit cards. Relying on minimum payments does a lot of damage in the long run. Your interest rate and the amount to be paid remain unaffected. Ultimately, you end up paying a lot more than you owe.

2. Not making timely repayments

Due to ignorance or willfulness, many people delay their payments. This results in additional charges and penalties, which will harm you far more than you realize.

3. Share details with your close ones

Many times, in order to help our family and friends, we reveal credit card details to them via WhatsApp or text message. Sharing images of your credit cards increases the likelihood of them being stolen. Even if they don’t, someone close to them might misuse it. So, what should you do? After helping someone, delete the information or share it in a way that it cannot be circulated.

4. Signing up for too many credit cards

It's easy to be enticed by the offers available on various credit cards. Most people end up having more cards than they need. They either misuse the funds on these cards or forget about them and end up with high service charges or penalties on them

5. Co-signing a credit card for someone else.

A close friend may occasionally offer to co-sign for a credit card. Out of concern, we might even do it. But this can actually be dangerous. You should avoid co-signing anything for anyone unless you have authority and a say in repayments.

If you know someone who has already done the above-mentioned things and needs help, connect them with FREED. As India’s 1st debt relief platform, FREED has been successfully resolving unsecured debts.

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