The Dos and Don’ts of Applying for a Credit Card

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When you apply for a credit card, you benefit from:

  • Safety due to cashless payments 
  • Savings thanks to offers and reward points 
  • Perks such as air miles and insurance covers 

Credit cards can help you manage your monthly expenses flawlessly, but only when used correctly. Not using this tool in the right way can harm your financial health. How? 

Well, high interest charges can accumulate on overdue balances, and you can be trapped in a vicious cycle of debt. The key to eating your cake and having it too is by learning how to use credit cards effectively. 

Best Practices To Follow When You Get A Credit Card


Read a few healthy practices you must follow when you apply for a credit card and use it to pay. 

  • Assess your need for a credit card 

It is natural to get confused when choosing a credit card. There are multiple credit card options available in the market with different perks. You could be a student looking to build credit or a working professional looking for a solution to manage your monthly expenses. 

Knowing the reason behind choosing this tool can help you make the right choice. Don’t be in a hurry. Take your time and choose the right card to enjoy the benefits. 

  • Pay bills on time 

Clearing your credit card dues on time is one of the healthiest financial practices. Paying bills on time helps maintain a good CIBIL score. This can help you get funds in the future more affordably and on better terms. 

Make a budget, and do not use your credit card recklessly. This will help you clear bills on time, every time. 

  • Know your payment due date

This is the date when the credit card issuer expects your payment. Clearing your balance before this date will not attract any interest. However, if you accidentally forget to make this payment, it can attract hefty interest on the balance. 

You can automate your payments with the auto-debit feature to avoid accidental late payments. 

  • Check your credit card statement 

Credit card statements are like your transaction history. It is advisable to always check them before clearing your dues. Even after setting auto-debit, it’s a wise practice to go through your statements. 

This will help you find any fraudulent transaction and report it. It will also help you understand your habits and spend wisely. 

  • Use reward points and discounts to your advantage 

Credit cards offer vouchers, cashback, airline miles, and discounts. These rewards are one of the key reasons to apply for a credit card. When used strategically, these perks can help you save big bucks in the long run. 

One Credit Card is one such option that offers 5X rewards points on your top two spending categories. Always look out for such offers and use them to your maximum advantage! 


These are a few mistakes to avoid while applying for a card and using it to pay for recurring or one-time expenses. 

  • Apply for too many credit cards at once

To give yourself options, you may apply for different cards at the same time. This is a no-no, as it hurts your credit score and deters lenders from giving you approval.

Instead, apply only for a card for which you meet the eligibility criteria. If you plan to get more than one card, wait at least six months before applying for a new one.

  • Clear just the minimum payment every month

The minimum payment is a small percentage of the balance generated. It may seem lucrative to just clear the minimum payment on the due date and carry forward the rest. 

However, doing this attracts interest charges on the balance. This can pile up over time and create financial strain. 

  • Overutilise your card 

Maxing out your card every month may seem like a good idea, but it affects your credit utilisation ratio negatively. When this ratio is too high, your credit health suffers. To boost your creditworthiness, use your credit card up to 30-40% of its limit.

  • Treat credit cards as an income source

Cashless transactions and payments made in one swipe can lure you into spending more than you should. If you end up using credit cards without chalking out your repayment plan, your spending may spiral out of control. 

This creates an unnecessary financial burden and can even hurt your CIBIL score in the case of late payments. Treat this tool to facilitate payments and not as an independent income source. 

  • Overuse the cash withdrawal facility

Credit cards offer ATM cash withdrawals, which is a great help in emergencies. However, unlike your debit cards, these come with certain transaction fees and interest. You not only borrow cash against your credit card limit but also pay a fee and high interest if you do not repay within a short period. This is an expensive way of withdrawing cash that can be avoided easily. 

Now that you’re aware of these golden rules, you can confidently apply for and use a card. To get a range of credit card benefits all at once, consider applying for the One Credit Card. This metal card comes with a full-stack technology-backed mobile app. Using it, you can find offers and discounts close to you, set limits on spending, and stay up to speed on all your transactions. 

The cherry on top is the fact that you never have to pay any joining or annual fees! Want it now? Get it now by downloading the One Credit Card app, and you can check your credit card status instantly too. 

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