Beware These 5 Credit Card Traps This Diwali
1.The No-Cost EMI Illusion
Many offers say zero-cost EMIs, but costs hide in higher product prices or processing fees. Missed EMIs lead to expensive interest, making your purchase costly over time.
2. Late Payments are Costly
Even one missed credit card payment can attract 30–45% annual interest plus late fees. This harms your credit score and can stay on your record for years.
3. Overspending Hurts Credit Score
Using more than 40% of your credit limit signals financial stress and lowers your credit score. To stay safe, use only 30–40% of your limit and spread big purchases across cards or use debit/UPI.
4. Fake Discounts Trap
Some sellers hike prices first, then offer big discounts to lure buyers. Always compare prices online and offline to spot genuine deals and avoid overspending based on fake offers.
5. Avoid Cash Withdrawals
Withdrawing cash on credit cards incurs immediate interest and 2–3% fees. Experts advise this only in emergencies, as it can add to your debt burden quickly.
Planning and disciplined use of credit cards during Diwali can help you enjoy the festival without debt worries. Pay bills on time, budget carefully, and read all terms before trusting offers.