Credit Score Guide #68: 5 Credit Card Habits That Ruin Your CIBIL Without You Realizing

 

You Might Be Hurting Your Credit Score Every Month Without Knowing It

A few innocent-looking habits can drop your CIBIL like a rock. Here are the biggest hidden mistakes most Indians make with credit cards.

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❌ 1. Paying Only Minimum Due

This creates a false sense of safety. Interest keeps compounding at 36–42%/year.

Fix: Pay full amount every month. If not possible, pay 2x minimum at least.

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❌ 2. Late Payment By Just 1 Day

Even 1 day late is reported to CIBIL. It reduces trust from future lenders.

Fix: Set up auto-pay or calendar alerts.

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❌ 3. Using Over 50% Credit Limit

High utilization = bad signal. Ideal use = under 30% of limit.

Fix: Ask bank to increase limit, or split usage between 2 cards.

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❌ 4. Applying for Too Many Cards

Each application = hard inquiry = score drop.

Fix: Don’t apply for more than 1–2 new cards per year.

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❌ 5. Closing Old Cards

Old credit lines help in building history. Closing them shortens your credit age.

Fix: Keep oldest card active with occasional spends (recharges, bills).

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✅ Conclusion

Handle credit cards with discipline, not casual use. Your CIBIL is your financial identity — keep it clean.

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