1) Outstanding amount

Considering to pay 90% of the outstanding before the due date? This cannot be of much help as the company charges you interest on the whole amount!

2) Minimum payment

Making minimum payment will save you only from the late payment fine, but interest charges remain applicable. This is only to save you from bad credit score.

3) Cash advances

Any cash withdrawal made on a credit card will attract high-interest rates which are almost double to what you would pay on personal loans.

4) Other charges

If you miss the due date, you will be liable to pay monthly interest on outstanding, which will be charged along with late payment fee and service tax.

5) Grace period

One should note that the amount swiped should be paid within the grace period of 40-45 days depending on the company. What this means is that interest-free period is only for 40-45 days.

6) Interest Rate

The institution can approximately charge around 3.5% as interest per month. The interest rate can vary depending on the type of card.

7) Credit Score

Small negligence of payment or over use can impact on your credit score and it may take lot of time to improve your score.

8) Cash withdrawal transaction charges

There is a 2.5 per cent transaction charges that would be applicable. So, if you have withdrawn Rs