First Time Credit Card users should know these.

First time using credit card seems fun and quite exciting to users. But it is important to keep in mind that a credit card isn't your money but it is borrowed money which you have repay back to the credit card issuer. 

Given below are some tips to use your credit card smartly and in turn helps in strengthening your CIBIL report and credit score:

Pay Off the Balances Monthly:
It won’t be a problem for you if you use your credit card well within your budget. To avoid interest, make sure to pay off your balances every month. Not paying off your balances will result in the interest piling up and eating away your wealth. That is why make sure to pay off whatever you use on the card every month.

Pay Your Bills On Time: 
As you know payment history is the most importance influence of your credit score. So, make sure that you pay your bills on time. Because late fees would add up quickly and late payments would impact your credit score.

Read the fine print before signing for a credit card:
You should know all the details like the duration of the grace period, interest rates and any other fees being charged. Also many people don’t know that interest rates can be negotiated so do a full research before applying for a credit card.

Access your credit score and report:
Checking your credit score and report at regular intervals helps you in managing finances better and identifying incorrect information on your credit report and also alerts you when there is a case of possible identity theft.

Don’t give out information casually :
Make sure that you keep your credit card information safe and secure. See to it that you don’t give out your passwords, account number or any other information when people ask for it online or on telephone. Before giving out information, find out if the person is trustworthy and is asking you for a specific purpose. Check if the site is secure before giving out credit information.

All first time users should consult a credit monitoring agency for knowing the pros and cons of using a credit card and its effect on credit score.
For more details visit www.cibilconsultants.com and book an appointment for getting services to renew, revamp and retaining your credit score !

Source: Secondary