5 Common Rules to Know Before Applying for Your Credit Card


Wondering whether to apply for a credit card online? You are not alone. Credit cards are becoming increasingly popular. This is evident from the fact that the cumulative credit card market volume in India rose from 37.48 million in 2018 to 57.5 million in 2020, according to figures released by Statista. Credit cards offer multiple benefits, from being a great source of financial support during an emergency to helping you earn reward points that bring excellent savings.

However, before you apply for a card, here’s a look at some rules that you should keep in mind to make the most of your card.

1.    Stick to one card

In case you have more than one credit card, consider using one card only. Choose the one that brings you better benefits and stick to it. This will help you quickly add on reward points, without spreading them over multiple cards and having to wait for months before you can redeem them. Also, using multiple cards makes it difficult to keep track of expenditures and you don’t want to get landed with huge bills.

2.    Try to stay within the credit limit

Your credit limit sets the bar for your expenditure. It is based on your credit card repayment capacity, which is further related to your income. In due course, even if you’re tempted to raise the limit to be able to spend more, don’t. Spending more implies repaying more later. Try staying with a low limit and spending within it. This will build financial discipline.

3.    Repay dues on time

Make sure to pay all credit card dues before the due date. This will help you avoid late payment fees or incurring interest on the outstanding amount. If you’re a first-time cardholder, you will usually receive a grace period with zero interest charges for paying off your balance. Paying these bills on time will also boost your credit score.

4.    Keep your credit card secure

Do not share your CVV number with anyone. Even if you allow someone trustworthy to use your card once, change its PIN immediately. Beware of skimming when you hand your card to vendors. Use your credit card online only on authorised and secured sites. Ensure multi-factor verification with your PIN or an OTP after both Visa and Mastercard use. Never share these verification codes with anyone.

5.    Don’t stop using your card

Keep using your card continuously for a specific period to avoid incurring extra charges. If you leave your card unused for several months at a time, it could lead to such charges. Even if you need to make minor payments, use the card regularly.

Ensure that you read all the terms and conditions before you apply for a credit card and make the most of all the benefit it will bring.

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