1. Payment Due Date
Staying on top of your credit card due dates is crucial. Missing the deadline can result in late fees and negatively impact your credit score. Most credit cards in India offer a grace period of 20-25 days from the statement date. Set reminders or mark the due date on your calendar to ensure you never miss a payment.
2. Regularly Check Your Credit Report
It’s essential to keep an eye on your credit report to ensure accuracy. Regular reviews will help you catch errors and spot any unauthorized transactions. This habit can protect you from identity theft and maintain a healthy financial profile. Reporting inaccuracies promptly will help you avoid unnecessary damage to your credit score.
3. Avoid Spending Beyond the Credit Limit
Overspending beyond your credit limit can lead to over-limit fees and impact your credit score. Always track your purchases and ensure you stay within your credit limit. Maintaining financial discipline helps you avoid fees and keeps your credit utilization low, which is beneficial for your credit score.
4. Credit Utilization Ratio
Your credit utilization ratio, the percentage of available credit you’re using, directly affects your credit score. Aim to keep this ratio below 30%. For instance, if your credit limit is ₹10,000, try to keep your outstanding balance below ₹3,000. Lowering your balance shows responsible credit usage and positively impacts your score.
5. Payment Methods
India offers multiple channels for credit card bill payments, including internet banking, NEFT, BillDesk, and automatic payments. Ensure that the platform you use is secure. Setting up automatic payments can help you avoid missed payments, provided you have enough funds in your account.