Credit Card Guide (General)
Types of Credit Cards
✈️ Travel Cards
Best for frequent flyers
Perks: air miles, hotel discounts, lounge access, travel insurance
🛍️ Shopping & Cashback Cards
Best for regular shoppers
Perks: cashback %, higher rewards on groceries, online shopping, utility bills
🎁 Reward Points Cards
Best for all-round use
Perks: earn points on all spends → redeem for vouchers, credits, air miles
👑 Luxury / Premium Cards
Best for high spenders
Perks: unlimited lounge, concierge, golf, premium insurance, exclusive deals
🏦 How Banks Earn from You
- Merchant commission (transaction fee)
- Annual charges
- Late payment penalties
- High interest on unpaid balances (typically 30–40% per year)
- Cash withdrawal charges
Understanding this explains why full payment and careful usage are critical.
- Always Use Your Credit Card Wisely ✅
- Life Time Free Card
- Choose no-annual-fee cards OR spend enough yearly to waive fees
- Use credit in case of emergency like in hospital
- Pay Full Amount Due ✅
- Auto-Debit from Bank Account ✅
- Never pay only the minimum amount due ❌
- Protect Credit score like cibil score
- Use less than or equal to 30% of your credit limit (e.g., ₹1,00,000 limit → spend ≤ ₹30,000)
- Never withdraw cash from credit card ATMs
Use Strategically
Use for planned large expenses and online transactions (safer than debit card)
Avoid fuel surcharge fees, wallet top-ups, or unnecessary small transactions
Balance Transfer (Optional)
Move dues to a low or 0% interest card for a few months to save interest if needed
✅ Discipline = Benefit
A credit card is a financial tool, not free money. Used correctly → rewards, safety, credit score. Used incorrectly → debt trap.
⚠️ Disclaimer
The information provided in this blog is for educational and informational purposes only. It is not financial advice and should not be considered a recommendation to apply for, use, or invest in any credit card products. Always consult with a qualified financial advisor or your bank before making decisions related to credit cards, loans, or personal finances. The author and website are not responsible for any losses, fees, or damages incurred as a result of using the information provided.
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