Things You Should Know Before Swiping Credit CardThings You Should Know Before Swiping Credit Card

Things You Should Know Before Swiping Credit Card

Since the inception of credit cards in the financial realm, obtaining funds has become exceptionally convenient. A mere swipe of the credit card allows one to secure an unsecured loan from the bank. While it stands as the optimal choice for swift and hassle-free fund borrowing, there are crucial considerations for credit cardholders prior to making that swipe. To maximize benefits, it is imperative to use the credit card judiciously, as misuse may lead to falling into a debt trap. This blog outlines key points to bear in mind before executing a credit card transaction, aiding individuals in optimizing rewards through their credit cards.

Key Considerations Before Using Your Credit Card

Card Swiping Fee:

  • A fee is charged when you use a credit card at fuel pumps or for international transactions, specifically for the act of swiping the card.
  • If the bank doesn’t offer a waiver or reduced fee, you are obligated to pay the standard fees.
  • In India, there’s a 3.5% foreign currency mark-up fee and a 1% fuel surcharge for credit card transactions at fuel pumps.
  • It’s advisable to review the terms of all your credit cards before using them for fuel or international transactions.

Offers on Credit Cards:

  • Exciting offers and discounts are available monthly and during festive seasons on credit cards.
  • E-commerce platforms like Amazon, Flipkart, Myntra, and Zomato provide enticing deals regularly.
  • Credit card transactions often come with a variety of incentives such as discounts, cashback, reward points, and vouchers, all aimed at enticing customers and encouraging spending.
  • Prior to swiping your credit card, explore existing offers to ensure you get the best deal.

Reward Points:

  • Ensure to verify whether your credit card offers rewards prior to using it.
  • Earn reward points on every transaction with a reward-based card.
  • Accumulated reward points can be redeemed for various benefits like utility bill payments, card outstanding balance, and e-gift vouchers.
  • Multiple credit cardholders should explore the best-suited card based on offers for maximum benefits.

Easy EMIs:

  • Please verify whether your credit card permits the conversion of substantial purchases into manageable monthly installments, known as EMIs.
  • EMIs offer a favorable choice by allowing you to break down hefty sums into smaller, manageable monthly payments with minimal interest rates.
  • EMIs can have varying time frames, ranging from 3 to 18 months.
  • Certain online retail platforms provide customers with the option of interest-free Equated Monthly Installments (EMIs) facilitated by credit card transactions.

Credit Limit:

  • Spending without caution might result in surpassing your credit limit, triggering over-limit fees, and possibly reducing your credit score.
  • Check your available credit limit and utilization before making additional transactions.
  • Awareness of your credit limit helps maintain a healthy credit utilization ratio and avoids unnecessary charges.


Effectively utilizing a credit card can offer numerous advantages, but irresponsible use may lead to undesirable consequences. Prior to using your credit card, it’s crucial to thoroughly investigate various options to make the most of its benefits. This list intends to offer valuable insights for you to consider before swiping your card. Misusing a credit card can have negative consequences outweighing the positives. To maximize the perks of your credit card, it’s important to familiarize yourself with essential terms and conditions, including associated fees and charges. Staying proactive in this regard can help you steer clear of falling into a debt trap. Furthermore, referring to resources such as ’12 Hidden Charges on Credit Cards You Need to Know’ and ‘6 Disadvantages of Late Credit Card Payment’ can provide a comprehensive understanding of potential drawbacks.

Frequently Asked Questions(FAQs)

1. Q: Why is it important to be cautious before swiping a credit card?

A: Using a credit card recklessly can result in financial troubles. It’s important to understand both the advantages and disadvantages to make well-informed choices when using it for transactions.

2. Q: What are the advantages of using a credit card responsibly?

A: Responsible credit card use can offer benefits such as rewards, cashback, and building a positive credit history, which can be valuable for future financial endeavors.

3. Q: How can I earn more benefits from my credit card?

A: Explore and understand the various reward programs, cashback offers, and promotional deals associated with your credit card. Utilize these features wisely to maximize benefits.

4. Q: What criteria should I evaluate before using my credit card for a transaction?

A: Evaluate your financial capability to repay, check for hidden charges, and be aware of the terms and conditions associated with your credit card to avoid unforeseen consequences.

5. Q: Can irresponsible credit card usage have consequences?

A: Certainly! Employing a credit card irresponsibly may result in the accumulation of debt, harm to your credit rating, and encountering financial difficulties. It’s essential to exercise responsible usage to steer clear of these adverse consequences.

6. Q: What strategies can I employ to shield myself from falling into the repetitive trap of debt often linked with credit cards?

A: Take the time to understand the terms, conditions, and fees associated with your credit card. It’s crucial to be proactive in grasping your financial responsibilities to avoid getting trapped in a cycle of debt.

7. Q: Are there any hidden charges on credit cards that I should be aware of?

A: Certainly, it’s crucial to stay mindful of concealed costs such as yearly fees, penalties for late payments, and the applied interest rates. Familiarizing oneself with these expenses enables individuals to make well-informed choices.

8. Q: Where can I find information on potential downsides of credit card usage?

A: Publications like ’12 Hidden Charges on Credit Cards You Should Be Aware Of’ and ‘6 Drawbacks of Making Late Credit Card Payments’ offer valuable information about the possible downsides linked with using credit cards.

9. Q: How can I build a positive credit history with my credit card?

A: Ensuring punctual payments, maintaining low credit card usage, and exercising responsible credit card usage are essential steps towards establishing a favorable credit history as time progresses.

10. Q: Can I get out of credit card debt if I’m already in it?

A: Yes, with disciplined financial planning, budgeting, and timely payments, you can work towards paying off credit card debt. Seeking professional advice may also be beneficial.

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