Credit Card Tips: Stop Using Your Credit Card This Way or Risk Ruining Your CIBIL Score

G GOWTHAM
In today’s world, credit cards are widely used by professionals, business people, and students alike. With the convenience of online shopping, EMIs, cashback, and reward points, it’s easy to swipe without thinking. However, mismanaging your credit card can have serious consequences, including a drop in your CIBIL score, which affects your ability to get loans or other credit in the future.

How Misusing Credit Cards Affects Your CIBIL Score

Maxing Out Your Credit Limit

  • Using too much of your available credit signals financial stress to lenders.
  • Keep your credit utilization below 30% of your total limit to maintain a healthy score.
Missing Payments or Paying Late

  • Late payments or missed EMIs are reported to CIBIL, reducing your creditworthiness.
  • Always pay at least the minimum due before the due date to avoid penalties.
Taking Too Many Loans or Cards Simultaneously

  • Opening multiple credit cards or loans at once can negatively impact your credit history.
  • Apply for new credit only when necessary.
Ignoring Statements and Interest Charges

  • Not reviewing monthly statements may lead to unnecessary interest charges or errors.
  • Regularly check your statements to ensure timely payments and correct billing.
Closing Old Credit Cards Unnecessarily

  • Older accounts help build a longer credit history, which positively affects your CIBIL score.
  • Avoid closing old cards unless absolutely necessary.
Tips to Maintain a Healthy CIBIL Score

  • Pay bills on time every month.
  • Keep credit utilization low.
  • Regularly check your CIBIL report for discrepancies.
  • Use your credit card wisely for planned purchases, not impulsive spending.
  • Keep a mix of credit types (credit card + loans) for a balanced credit profile.
Conclusion

Credit cards are powerful financial tools, but misusing them can severely damage your CIBIL score. By keeping utilization low, paying bills on time, and monitoring your credit behavior, you can enjoy the benefits of credit cards without harming your financial reputation. Responsible usage today ensures financial flexibility and easier access to credit in the future.

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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