Some people have credit cards but don’t use them, while others only use their credit cards for emergencies once or twice a year.
Although not using a credit card may not cause immediate consequences, it can lead to negative situations in the long run.
Many people use credit cards to improve their CIBIL score, which allows them to access loans from banks at low interest rates.
A credit card can also be helpful in emergencies, but not using it can result in a credit history loss and may even lead to the card being deactivated. Reactivating a deactivated card can be a hassle and unavailable when needed urgently.
Using a credit card can benefit you with cashback and reward points. However, failing to use the card can result in the loss of these rewards, and the annual fee paid for the card will be wasted. Remember this to motivate yourself to use your credit card more often.
Using the credit card regularly is important to keeping your credit utilization ratio below 40%. Frequent use may also increase your credit limit, providing you with more flexibility.
If the card is left unused for a long time, it may be deactivated, and reactivating it would incur additional charges.
Therefore, it’s crucial to thoroughly understand all the rules and terms associated with a credit card before getting one. Remember, it’s better not to have a credit card than to have one and not use it.