If you also make these mistakes, your credit card will be blockedBank agents show great interest in having a credit card made for the customer. There is a sweet tone to his speech. However, once the credit cards are created, it is not possible to view them. So if you have a credit card, be careful when using it. There are several risks associated with this financial product
In India, banks find it difficult to sell credit cards because it is a relatively new product. Chances are you will receive many calls and messages over the next few days detailing the bank’s offer to issue you a credit card.
The benefits of the product must be explained. But all these nice things about credit cards only last until you apply for the card.
Once the card has been created, it is important to observe the credit card rules. If you do not pay the bill on time, the bank immediately lifts a fine. Your credit card may also be canceled for repeated bank rule violations.
misuse is not allowed
Some time ago, Ashish started investing Rs 4 lakh every month in Tier 2 account of NPS. He only has a few months left to invest further. The National Pension System is a pension scheme. In addition, investors can deduct their investments from their taxes.
This program includes a Tier-1 account and a Tier-2 account. Tier-1 is locked for a certain period of time. It is possible to withdraw the money before you retire. NPS Tier I investors have the option to invest in NPS II. Tier-2 management is similar to Tier-1, but there is no lock-in period.
The investment in NPS-2 was made with Ashish’s credit card. As a result of this transaction, he received reward points. After some time, his money was taken out of NPS-2. Credit card bills were paid with that money. In this case, only a small transaction fee was charged.
In return, they get free reward points. In this case, the bank considered the transaction a violation of its remuneration policy. Ashish’s credit card had been canceled so he could no longer use it. The following image shows an example of a bank canceling a credit card.
must pay on time
If you repeatedly fail to make bill payments, your credit card may be cancelled. In addition to interest and fees, banks receive income from credit card customers. This affects the cash flow of banks when late payment fees are levied. A credit score that is constantly impacted by late payments can also be negatively impacted.
Read also- Credit Card Penalty: Know how to pay a credit card bill without penalty
Use it sometimes even when you don’t need it
Banks can cancel credit cards even if you haven’t used them for a certain amount of time. If a credit card is not used for a year, the bank usually cancels it.
So even if you don’t need a credit card, you should use it. The automatic bill payment option can help you avoid forgetting to pay bills.
overspending
The bank also monitors how much the customer uses the credit card. Credit card Higher usage means the person has less cash. In general, banks become alert when a person spends more than 30 percent of the limit. In such a situation, the bank may decide to cancel your credit card.
In other words, if you have a credit card, you should be careful when using it. Financial products are the subject of this article. There are many benefits and risks involved. So just getting a credit card is not enough. In addition to proper use, it must be handled correctly.
