Beware of credit card traps! How to avoid high interest, debt trap & more: FAQs answered

For example, a veteran banker, A G, received a. credit card bill. of Rs 1,51,460 in April 2023..

You can use credit cards for online and offline shopping, as well as bill payments, as long as the total amount falls within the credit limit set by the issuer..

If a customer misses a payment or pays less than the minimum balance before the due date, the issuer begins collecting interest on the total amount due from the transaction date...

If the outstanding balance is not paid in full, the grace period of interest-free credit is forfeited, and all new transactions start incurring interest...

Failure to pay the minimum amount due, as stated in the monthly bill, is considered a default and adversely affects the credit score..

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