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Why is it important to use your credit card cautiously?
credit card

Why is it important to use your credit card cautiously?

| @indiablooms | 20 Mar 2023, 06:41 pm

Credit cards have become very popular, especially among the millennial generation. It is evident as the number of active credit cards went up by 20% year-on-year to 806.65 lakh in November 2022, as per Reserve Bank of India (RBI) data. In this article, we will discuss the fundamentals of credit cards and the quickest ways to pay your credit card's outstanding.

Banks issue credit cards only to those customers who have a good credit history. You don't need to have an account with the bank to get one. A credit card lets you pay for regular expenses like utility bills and groceries and unexpected expenses such as hospital bills in case of a medical emergency. Moreover, you can withdraw cash from ATMs using your credit card, but charges will apply.

A credit card offers you the convenience of making payments without having to carry cash on you – or even if you don't have enough money in your bank account. A credit card also offers you a free credit period of around 45 days, which helps you balance your cash flow and budget. 

Importance of paying credit card bills on time 

Credit cards offer you convenience and flexibility, but they can land you a debt trap and adversely affect your credit history if not used properly. You must pay your credit card dues on time to avoid this situation. If you fail, you will have to pay a late fee and interest at a very high rate. Moreover, consistent default in payment of your credit card dues can spoil your credit history and credit score. A bad credit history and credit score adversely affect your ability to avail of credit from the financial system for a very long time. Furthermore, it can take years to repair a bad credit history.

For example, given the booming cost of real estate, an average person can't buy a home without availing of a home loan. That is one of the situations where credit scores come into the picture. Making timely card payments and clearing credit card dues every month will reflect an excellent credit score. A good credit score helps you quickly get loans in the future, and that too at comparatively better interest rates. A good credit score helps you fulfil your dream of owning a house. 

How to pay your credit card dues quickly

As established in the above example, timely credit card payment is crucial, and there are various ways to do this. The best way is to automate it by setting up an autopay option. Your credit card dues will be auto-debited from your bank account by the due date. If you have an account with the same bank that has issued the credit card, the bank can automatically debit the outstanding amount on the due date. So, autopay ensures timely payment of dues and helps you improve your credit score.

If you have installed your bank's mobile app, you can pay your credit card dues quickly from anywhere, anytime. You can also make online credit card payments through internet banking with equal ease and speed. As a last resort, you can pay your credit card bill by issuing a cheque in favour of the credit card company, but this is a cumbersome alternative. 


A credit card offers convenience and flexibility if used judiciously. It has become a must-have today. Why not apply for an IDFC FIRST Bank credit card, which is lifetime free and offers free ATM withdrawals and lower interest rates? You can apply online for your IDFC FIRST Bank credit card by visiting

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