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Wealth Tips

How To Use A Credit Card Wisely

Here are the top tips to help you use credit cards more wisely in India.
October 26, 2023

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A credit card is something that can bring great joy if you use it wisely. A solid credit card gives you the freedom to spend money when you need it, even if you don’t have it. However, credit cards can also lead you into massive amounts of debt if you’re not careful.  You can consult a Cube Wealth Coach or download the Cube Wealth App.

Many people forget that credit is not free money. Your credit card expenses quickly turn into payments and high-interest rates can really mow you down. So, does that mean you shouldn’t use a credit card?

Well, if you’re someone who can be a little disciplined and show restraint when required; a credit card can be extremely useful.

So here are top tips to help you use credit cards more wisely:

1. Know Your Annual Fees

The first thing to ask a bank before taking a credit card is what the annual fee is. While there are many credit cards that have low to no fee, other premium cards can have a hefty annual fee.

One that you may not be able to afford in the long run. So, be careful about the card you get, behind all the gold, platinum and black cards is a fee you ought to know about.

2. Check Your Billing Cycle

You can forget your anniversary, you can miss your child’s soccer game but, it there’s one thing you should never miss is your credit card payment. Credit card interest rates card is brutal and they work against you if you miss them very often.

So, ensure you know when your credit card bill is due and pay it off. No one likes paying late fees and credit card bills card set your savings plans back by a fair bit. Therefore look at your credit card statement and see when your credit card payments are due.

3. Pay Bills Before the Due Date

That’s right! When it comes to credit card payments you’re better safe than sorry. You don’t want to hurt your credit score or end up paying exorbitant late fee charges. And make sure you don’t just pay the minimum payment.

You want to avoid raising debt so pay off the whole amount as a habit.

4. Don't Be Reward Hungry

Most rewards, freebies and discounts are nothing but upsells. Don’t fall for the trap – if you’re paying for something you can afford and need – you’re being wise.

If you pay for something that you know is too expensive and are justifying it with the points – you’re on the wrong track.

Don’t be driven by points, rewards and benefits alone. Use the card on what you need and let the rest bring extra happiness where it can.

5. Only Use Your Card At Shops You Trust

Credit card fraud is a legitimate concern world over. You don’t know who is sitting to steal your details in just a swipe. Although modern-day chip cards have changed things a lot, it is still best to only use your credit card at a merchant you trust.

If you’re at a place you don’t trust completely use cash or a debit card with the limited account balance.

6. Maintain & Use That Credit Score

One benefit of using credit cards is that you can get a good credit score. As long as you make regular purchases and pay it off in time – your credit score stays solid.

This means you’re more trustworthy as a borrower to banks. Which makes it easier for you to get a loan compared to others. You can consult a Cube Wealth Coach or download the Cube Wealth App.

7. Keep A Low Dependency

Don’t depend too much on your card. If you make big and regular payments from your card, it’s a sign that you can’t meet your expense requirements on your own. A lot of people don’t know this but spending more on your card isn’t necessarily seen as a positive by lenders.

You’re better off slowly increasing your spends in your credit card and spending what you have in your account most of the time.

8. Avoid Getting Multiple Credit Cards

Too many cards can spoil the credit broth. Why do we say that? Well, there’s just more to manage and think of. It’s a pain for most people to keep track of just one credit card imagine having 4 or 5.

It would be chaos and more importantly… no one needs so many credit cards.

9. Protect Your Credit Card Information

This is something we can’t stress enough on. Don’t share sensitive card information with anyone. Don’t make assistants, maids etc pay your bills.

Don’t leave it to a friend and don’t hand your card to your driver to go buy groceries. Be extra careful about your card and it’s information.

10. Automate Your Credit Card Payments

Last but not least, automate your credit card payments. That way you never miss a payment, you never have to pay late fees and you never end up paying hefty interests.

Not to mention the peace of mind of knowing payments are going to happen without any effort. Just maintain enough balance in the account you use for auto-debits and you should be good.

Those are our top 10 tips to use a credit card wisely. Don’t forget to share this blog with your friends.


1. Why is it important to use a credit card wisely?

Ans. Using a credit card wisely is crucial to maintain a good credit score, avoid high-interest debt, and manage your finances responsibly. It can also provide benefits like cashback, rewards, and purchase protection.

2. What are some tips for using a credit card wisely?

Ans. Wise credit card usage involves paying bills on time, keeping credit utilization low, avoiding unnecessary debt, monitoring your statements for errors, and being cautious about cash advances and balance transfers.

3. How can I build and maintain a good credit score with a credit card?

Ans. To build and maintain a good credit score, make on-time payments, keep credit utilization below 30%, and regularly check your credit report for accuracy. Responsible credit card use can have a positive impact on your credit history.

4. What should I do if I find myself in credit card debt?

Ans. If you find yourself in credit card debt, create a budget, prioritize paying off high-interest debt, and consider options like balance transfers or debt consolidation to lower interest rates.


Using a credit card wisely is not only a matter of financial responsibility but also a means to leverage the many benefits that credit cards offer. These benefits include convenience, rewards, and the potential to build and improve your credit score. Here are key takeaways from this guide on using a credit card wisely:

1. Responsible Usage:

Using a credit card wisely involves responsible spending and making on-time payments. Avoiding impulsive purchases and maintaining financial discipline is essential.

2. Credit Score Management:

A good credit score opens doors to favorable lending terms and financial opportunities. To build and maintain a strong credit score, pay your credit card bills on time and keep your credit utilization low.

3. Budgeting:

Creating a budget helps you track expenses and ensure that you don't spend beyond your means. It also allows you to allocate funds for paying off credit card balances.

4. Interest Avoidance:

High-interest credit card debt can be financially burdensome. Avoid carrying balances from month to month by paying your full statement balance to avoid interest charges.

You should watch this episode of The Cube Wealth Show where we share money saving tips with you! These would go a long way in helping better manager your finances, as would using your credit card wisely.

Rishabh P Nair
Rishabh P Nair is the Head Of Brand Content at Cube Wealth, the Financial Freedom App with a smart Perfect Portfolio Planner. Rishabh has been weaving stories for over 10 years and prides himself on building brands with a strong identity.

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