Credit Score Guide #33: Credit Card Mistakes That Ruin Your CIBIL Score

 

8 Credit Card Habits That Are Secretly Killing Your CIBIL Score

Using a credit card is not bad — misusing it is. One small mistake can cost you your loan eligibility for years. Let’s uncover the silent killers of your credit score.

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⚠️ 1. Paying Only Minimum Due

It shows you’re financially struggling, increases your debt, and affects repayment history. Always pay the full outstanding before due date.

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⚠️ 2. Missing the Due Date

Even a 1-day delay can be reported. This hurts your score more than a ₹1,000 penalty.

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⚠️ 3. Using Over 50% of Your Limit

This signals over-dependence on credit. Ideal usage is below 30%. Request a higher limit, but don’t use it fully.

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⚠️ 4. Applying for Too Many Cards

Every application = hard enquiry = lower score. Don’t apply to multiple banks within 2–3 months.

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⚠️ 5. Closing Your Oldest Card

This reduces your credit history length. Instead, use it once a month for a small amount and repay it.

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⚠️ 6. Using One Card for All Expenses

Diversify usage across cards or mix debit + credit. Overusing one card looks risky to lenders.

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⚠️ 7. Taking Cash Advance from ATM

This is treated as a loan, with no grace period. You pay high interest from Day 1.

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⚠️ 8. Ignoring Statement Errors

Always check your credit card bill. Wrong charges? Report within 2–3 days. Else, they become your liability.

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✅ Conclusion

Credit cards can boost or break your financial future. Use them like a tool, not like free money.

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