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Credit Score And Credit Card Usage: How To Use Your Cards Wisely


by Mahindra Finance


June 17, 2024


4 mins read



Credit cards have become an essential part of our lives, offering convenience, rewards, and the ability to make purchases without carrying cash. However, it's important to use them wisely to avoid falling into debt or damaging our credit score. 

In this article, we will explore valuable tips on how to use credit card responsibly, maintain a good credit card credit score, and reap the rewards they offer.

1. Time Your Purchases

Understanding your credit card's billing cycle can be advantageous when it comes to maximising interest-free periods. For example, if you make a purchase just after your credit card bill is generated, you can enjoy up to 45 interest-free days or even more. By timing your purchases strategically, you can make the most of this benefit.

2. Pay Your Bill On Time

Paying your credit card bill on time not only improves your relationship with the bank but also has a positive impact on your credit card credit score. Regularly paying off your bills demonstrates financial responsibility and can lead to an increase in spending limits and attractive offers on loans and other financial products. It's crucial to pay attention to due dates and ensure prompt payment.

3. Follow the Rewards

Many credit cards offer reward programs that provide discounts on various products and services, as well as additional privileges such as free lounge access at airports. By carefully reading the details in your credit card booklet, you can take advantage of these benefits. 

Earning reward points for every purchase can accumulate significant advantages over time, including free flight tickets, movie vouchers, or substantial discounts on electronics.

4. Be Smart About Repayment

Some banks offer convenient repayment options, such as EMIs (Equated Monthly Installments), which allow you to pay for large purchases in monthly instalments. This approach helps ease your financial strain and ensures that you can manage your credit card payments without stress. Additionally, using credit card net banking facilities can simplify the repayment process.

5. Use Your Card at Trusted Merchants

Whether you're shopping online or at a local store, it's crucial to ensure that the merchant or retailer is reputable and trustworthy. This minimises the risk of your card being misused or your personal information being compromised.

6. Be Alert with Your Credit Card Usage

It's essential to use your credit card prudently and avoid maxing out on your credit limit every month. Regularly monitoring your credit card transactions allows you to track your spending patterns and identify any unauthorised or unexpected charges promptly. Setting limits on your credit card can prevent overspending.

7. Know Your Credit Limit

Understanding your credit limit is vital to avoiding penalties and maintaining a good credit card credit score. Exceeding your credit limit can have adverse consequences, including over-limit fees and potential harm to your creditworthiness. Plan your spending and budget accordingly based on your available credit limit.

8. Read the Terms and Conditions Thoroughly

To know how to use credit card wisely, it's essential to read and understand the terms and conditions associated with it thoroughly. Familiarise yourself with any applicable fees, such as annual fees or late payment charges, to avoid surprises on your monthly bill statement.

By following these tips, you can make the most of your credit card while maintaining a good credit score.


Using credit cards wisely is essential for maintaining a good credit score and maximising its benefits. By timing your purchases, paying bills on time, following rewards programs, and being smart about repayment, you can make the most of your credit card usage.At Mahindra Finance, we understand the importance of credit for loans; hence, we strive to provide tailored financial solutions that cater to diverse credit profiles. Our goal is to empower individuals and businesses by offering accessible and flexible loan options supported by competitive interest rates.


1) What is a credit report?

A credit report is a detailed record of an individual's borrowing history, including credit card payments, loan repayments, and outstanding debts.

2) How can I check credit score online?

You can easily check credit score online by visiting websites like CIBIL. They offer a simple process to check your Credit Score and provide insights into factors influencing your score.

3) Is it necessary to perform a CIBIL check before applying for a credit card?

While it's not mandatory to perform a CIBIL check before applying for a credit card, it's advisable to do so. Performing a CIBIL check will give you an idea of your creditworthiness and help you understand which credit cards you are eligible for.

4) How can I request my credit report?

You can request your credit report from any of the major Credit Information Companies (CICs) in India, such as CIBIL, Experian, Equifax, or CRIF High Mark.

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