Loan on a credit card

Card issuers allow the facility of paying any loan you take on your credit limit through EMIs (equated monthly installments). Most card issuers extend this loan very easily and that too without any need for documentation. However, they charge you a high rate that can hover up to an annualized interest rate of around 30-42%.

Although credit card usage for an interest-free period is fine but remember that in the current scenario most banks are doing away with the credit free period and also raising the interest rates. Therefore be cautious while using your credit card.

Credit Card statement

Another important aspect in managing your credit card is to keep a careful check on your credit card statement. It is very important that you go through your credit card statement details and understand your spending pattern. The total outstanding and current due date for payment need to be scrutinized properly. This column will also mention the previous month's transactions through the card. It is advised to go through each particular of this list and see if they match your expense record. Further if you feel the need to clarify any charge then call on the customer care number that is quoted in your statement.

Also try to keep track of your credit card bill through your online banking account and in case a bill does not arrive on time then report this to the bank immediately.