Credit Card is a Very Beneficial Thing , You can Earn Rewards for Food,Shopping and also Free movie Tickets, But If you Do not use this Properly, Than This is becoma a headache. So Use It Right way. Person Who use Credit Card have many myths ,so read this Full article to avoid these myths.
1) Use Credit Card Limit free for 45 to 50 Days-
This Is Not fully True,Actually Fact is credit card offers free credit till the end of the 30-day billing cycle and the payment is due in about three weeks. So, if the purchase is made on the first day of the billing cycle, you get an interest-free period of almost 50 days. But this interest-free window gets smaller with every passing day. Purchases made 15 days into the billing cycle will get only 35 days of free credit. On the last day of the cycle, the user will get only 20 days of interest free credit. Keep in mind that there is no free credit if you rolled over the balance in the previous month.
Note- Use More than 1 card So but different billing cycle helps you Juggle expenses and Maximise the interest free Benifit.
2) Credit Cards Makes You Shopholic-
Credit card makes you shopholic , this is a totally myth. This depend on you how you treat this, if your income is not much and you use this for shopping and other service , than this is not beneficial, Your expense more but your income is fixed , so you may stuck in trap of Interest of credit cards. Use credit card Wisely and try to to pay full amount of your credit card.
Note-Use Budgeting app to Understand you expenses. these app remind you if you overshoot your budget.
3) More Use of credit cards can grow your credit card reward point.-
Credit Cards Rewards Depends on Nature of Expenses , Where you use it, How to use it. Too much Use of credit card only for earn reward points is Totally Fool thing. So Don't Use Blindly Only for earn rewards, this will be Danger for your budget . Also, don’t wait too long to accumulate a huge number of reward points. Reward points are like cash and lose value over time. In many cards, reward points even lapse if not used within a specified period.
Note-Encash reward points periodically. If the credit card company allows, adjust the points against your bill payments.
4) If you Use more cards than this Effect you Cibil Score.-
Cibil Score is Based on your Paying History of your EMI and Credit cards Bill. Use of more cards is not Effect your Cibil if you Pay this on time. Also this Increase your cibil if you Pay all your credit card bill on time. and Credit Card Companies approach you for use their credit Cards.
5) Only Use Free Credit Card, and Don't Use Membership Credit Cards-
Why should anyone pay an annual fee when credit cards are available free? The answer lies in the benefits they offer. A free card may not give you access to an airport lounge or make you eligible for airmiles. Others won’t give any discounts at restaurants and merchant outlets. The benefits accruing from these cards far outweigh the annual fee. What’s more, many cards even waive the fee if the usage exceeds a threshold.
Note- Use Credit Card who suit your Life Style.
6) Avoid Credit Limit Hikes if you Don's Need Them-
Timely payments and responsible financial behaviour are awarded with higher credit limits and aspirational metallic colours on the card. There is no reason for you to deny yourself the benefits of higher spending power while having the added advantage of lowering your debt in comparison to your total credit line.