top of page

26 Costliest Credit Card Mistakes: To Avoid Debt Trap & Earn Free Gift!

Dear Readers/Community Members,

For the benefit of the community, I am herewith sharing an useful information that actually I had created in the form of Digital Product (E.Book) that provides an awareness about the wise strategies while using Credit Cards and what costliest mistakes can be avoided while ensuring your money is not lost in the process. The paid version is herewith released as FREE to start with that helps the community and this is based on my 8+ years of experiences and mistakes which I want others not to do so to protect one's money/wealth.

These below suggested best practices on usage of Credit Cards also act as money savings strategies/guidelines/techniques and myself as a personal user of Credit Cards since 2012, hereby suggest you to adopt these practices to your best possible extent and help yourself after following the same in achieving Money Savings while using Credit Cards and avoid falling into Debt Trap/Loan Trap and gain peace of mind and also on a long term, helps you in attaining your financial goals and might be a major factor too in achieving your Financial Freedom. Your savings thus achieved can also earn you free gift! over a period which you realize yourself.


1. Helps you to save your hard earned money in thousands/lakhs rupees.

2. Avoids falling into Credit Card Debt Trap.

3. Acts as Financial Literacy.

4. Helps to gain control on your expenses/spends.

5. Partly contributes to your financial freedom.

6. Creates peace of mind from financial worries.

7. Develops financial discipline and builds good credit score.

8. Helps to widen your money saving skills than thought earlier.

9. Avoids unnecessary calls from credit card institutions/banks.

10. Helps to own your financial responsibilities/situation.

1. Never pay minimum amount as per the credit card statement bill, as this will lead you to fall into debt trap due to accumulating interest and this burden gradually increases in the later months.

2.Best method: To pay credit card amount in full.

3.Avoid fresh transactions on the credit card when you have not paid your credit card bill in full amount in the previous month(s) bill, as this will attract interest/additional charges etc., in the next bill and goes on with accumulating.

4.Since credit cards have highest interest (16-48% per Annum), delayed payment causes penalties in the form of addition of interest/financial charges/taxes/fees etc., as per respective banks terms and conditions, thereby experiencing huge burden or difficult to repay situations.

5.Always pay full credit card amount intime, this will help to build your GOOD Credit score.

6.Don’t practice credit card revolving i.e., don’t use credit card to pay another credit card due, this easily leads you in trap with burden of accumulated interest and reaching to situation of unable to pay/struggle.

7.Apply for Credit Card ONLY if you have repayment capacity, since you know your salary, commitment and regular expenses.

8.Avoid subscriptions on Credit Card on Entertainment Channels/Portals if you don’t have time to spend.

9.Convert high amount purchase/transactions into EMI mode either by online/contacting customer support of bank to simplify your payment, so that, its easy for you to pay the same in installments/parts and you don’t feel much burden. Of course, this attracts some interest charges/financial charges/taxes etc., than higher in case of non-payment, but with your financial payment discipline, you can come out of this at the earliest.

10.Once you are a regular user of credit card for years, try to negotiate with credit card issuing banks to waive-off Annual Membership Fees/Charges for the credit card being used by you.

11.Don’t use credit cards for the sake of discounts/offers announced in the market/online portal.

12.Check rate of interest offered before converting high amount transactions into EMI/pay-in-parts, as this helps in decision making process of your purchase.

13.Always ensure as thumb rule, total credit card limit utilization should be restricted to less than (<) 35-40% of limit sanctioned to your credit cards. Credit Card limit can be seen in your credit card bill statement. This helps you to track your expenses and also control your urge to future spending.

14.Don’t use/swipe credit card for the sake of reward points/cash back or to gain any other benefits as long as it is a need.

15.Limit number of credit cards (maximum 2-3). Avoiding is even better.

16.Don’t take higher credit card limit even if card issuing banks offer, else, this prompts you to spend more.

17.Have a habit of cross checking your credit card bill statement to understanding your expense/spend pattern and take control where ever needed and avoid unnecessary burden.

18.Don’t transfer amount from credit card to your Savings Bank account from any online portal, as this will attract 2-5% conversion charges and also lands you in debt/trap indirectly.

19.Don’t withdraw cash using credit card from ATM as it attracts additional charges.

20.Pre-pay credit card loan dues/outstanding only if you have surplus amount and ensure to ask the bank representative/customer support, are there any pre-payment charges involved (example like 2-3% on the outstanding loan amount being paid or as amount decided to pay) and take a decision accordingly.

21.Don’t apply for too many credit cards at same time/period, as this might reduce your CIBIL Credit score and likely, there are chances of your credit card application rejection.

22.Don’t reveal your credit card passwords nor save any credit card details in any online platform to avoid cyber attacks/unauthorised transactions. Only you should know.

23.After closing the credit card, obtain NOC from the credit card issued institution/banks at the earliest. This helps you to avoid sudden shocks in future when someone asks you to pay an outstanding amount as there are chances of your account still active and there might be addition of any annual charges accumulating over the period.

24.Avoid credit card usage on foreign tours, except under emergency. Confirm additional charges with banks if any before you travel.

25.Think always, Credit Card is a Liability, not an Asset. (Assets add money into your pocket, Liability takes money out of your pocket).

26.Avoid taking loans on Credit Cards if offered by banks, provided under emergency only, further to based on your repayment capacity.

Disclaimer: Results may vary person to person and hence, treat these practices/tips/strategies as stated for your guidance purpose only. Wherever possible, consult your financial advisor/expert/banks/CA/refer blogs for more assistance and understanding.

21 views0 comments


bottom of page