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Credit card new rules: In today’s digital era, credit cards have become an important part of our financial life. It helps to shop, pay bills and meet the immediate needs of cash at times. But while using a credit card, it is very important to take care of some rules and precautions, otherwise you may have to bear the loss instead of benefits. The Reserve Bank of India (RBI) and banks periodically change the rules related to credit cards to protect the interests of customers and make the financial system transparent.
Credit Card New Rules: Use Credit Card? So know these new rules
Here are some important things and rules that every credit card holder should take care of:
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Correct use of credit limit: Each credit card has a certain credit limit, that is, the maximum amount you can spend with the card. Using more than 30–40% of your credit limit can negatively affect your credit score. Always try to use only a small part of your credit limit and pay it on time.
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Confusion of minimum amount due to minimum amount: Many people think by paying the minimum payable amount written on the credit card bill that they have completed their duty. But this is a big mistake. By paying the minimum amount, you avoid late payment charge, but heavy interest starts on the outstanding amount. Always try to pay the entire bill on time.
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Interest Rates and Charges: The interest rates on credit cards can be quite high, especially if you do not pay on time. Apart from this, different types of fees can also be levied such as annual fees, late payment fees, cash advance fee, over-limit fee etc. Before applying for any new credit card, know all these fees and interest rates well.
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Payment due date: Always remember the date of payment of your credit card bill and pay before that. Late payment not only imposes late payment fee, but it also spoils your credit score. You can also use auto-debit facility so that payment is never missed.
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Importance of credit score: Your credit score is proof of your financial credit. A good credit score helps to get a loan (eg home loan, car loan) or new credit card easily and on better conditions. The correct use of credit cards plays an important role in improving your credit score.
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Regular checking of statement: Watch your credit card statement carefully every month. In this, report any unfamiliar or wrong transaction immediately to your bank.
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On being lost or stolen: If your credit card is lost or stolen, immediately call the customer care number of your bank and get it blocked. This can prevent any fraud transaction.
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One-time password (OTP) and PIN safety: Do not share OTP received for your credit card pin and online transactions with anyone. Banks never ask for this information on phone or email from you.
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Credit card billing bicycle information: Understand your credit card billing bicycle (the date when your bill is made and the date of payment). This will help you to plan your shopping better and get enough time for payment.
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Card closing process: If you want to close your credit card, after paying all the outstanding amount, contact the bank and follow the appropriate process. Just stop using the card does not stop it.
RBI and banks try to make credit card rules safe and transparent for customers. As a conscious consumer, being aware of these rules and using your credit card wisely is important for your financial health. If you have any doubt, do not hesitate to contact your bank.