5 Common Credit Mistakes And How To Avoid Them

Credit is an easy financial solution for your needs. However, incorrect usage can cause losses and damage your score. Here are some mistakes to avoid.

Paying Minimum Amount Due (MAD)

While paying the MAD allows you to revolve credit, it is bad since it incurs high interest charges. Always pay your dues in full.

Missed payments

This incurs high interest outgo and lowers the credit score. Always pay your dues on time. Set reminders or an auto debit mandate for the same.

Multiple applications at once

Applying for multiple debts in a short time is bad for the credit score. Keep a considerable gap between old and new credit. 

Long-term loans

Longer loan tenures mean more interest payments. Try and choose a shorter repayment tenure which gives affordable EMIs and also saves interest. 

High credit utilisation

Higher utilisation means higher interest and lower credit score. Minimise your credit use for better creditworthiness. 

Avoid these mistakes and explore IDFC FIRST Bank’s credit cards and loans. Get easy credit at attractive and affordable interest rates.