Attention Credit card owners! Follow these 7 golden rules

Zee Media Bureau

New Delhi: Credit card opens a huge opportunity for your shopping because it makes the transaction easier, smoother and hassle free.

But you should use your credit card wisely or else the small mistakes that you make might create a lot of troubles for you later.

If you are a frequent credit card user, you must follow these 7 golden rules.

1. Never make late payments as it involves a big penalty. But the most important thing is that the late payment habit has a negative impact on your credit card score. You will realise the importance of this score while applying for housing and auto loans.

2. Never get into the “minimum payment” trap. This option looks very good for short term, but in the long term you end up paying a huge interest.

3. Don't keep many credit cards. True, this widens the scope of your shopping. But remember, in the end you will have to pay for everything –the payment as well as the interest.

4. Don't use your credit card for purchasing everyday household items. Though you don't mind paying Rs 200 for the exotic apples, but when it comes to paying total interest, it will hurt your pocket.

5. Always read the terms and conditions of your credit card company. Different companies will have different hidden rules.

6. Don't overlook your monthly statement. It not only helps you keep a track on your shopping but also alerts you on unfamiliar transactions.

7. Never use your credit card for ATM transaction. You will end up paying a hefty interest on cash transaction through your credit card.