Be informed: Look at annual fees, interest rates, credit limit, penalty and payment terms before you get the credit card. Be fully aware of what you are getting into before you sign up for a credit card.

Spend within your means: Every rupee spent is a loan that you have to repay. Make your credit card expenditure fit into your budgetary considerations. Keep a tab on your spending and try to reserve the credit card for emergencies or unplanned expenses. Most people leave the credit card at home to avoid wasteful spending.

Try to pay all your bills in full on time: The interest rate on credit is usually 24%. You can avoid accumulating interest if you don’t just pay the minimum and this will also free up your line of credit. Paying at least the minimum amount due before the due date keeps you in good standing with the bank.

Keeping tabs: Analyse your spending patterns with the monthly statement. Determine if you are overspending anywhere. Using the card wisely helps build your CIBIL score. It will help you get loans if you ever need it in future. A lot of people tend to use their credit card to pay off their bills to maintain a record of expenses.

Use your reward points quickly and well: Most people let the points accumulate and have no idea about how to use them. Check with your bank about reward points and how it can pay off.

Check on cash back options: Some credit cards offer cash back on certain utility payments. For example, for a Rs 1000 telephone bill paid or movie tickets bought, you may receive cash back of 4-5%. You can make complete use of this and save some money.

The rule of thumb should be to not exceed 30% of your credit limit on the credit card. If you would like to get an ICICI credit card, apply at

Happy spending!

Reference :

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