Used well, a credit card gives you 45 days of free credit, 1–5% cashback, airport lounge access, insurance and a stronger credit score. Used poorly, it charges 36–46% APR and destroys your bureau score in months.
The credit-card cliff — cost of paying only minimum due
Six rules that flip credit cards from liability to asset
- Pay the full statement balance every month. Never the "minimum due".
- Keep utilisation under 30% of your limit — it protects your CIBIL score.
- Match the card to your life — fuel, groceries, travel or online spends.
- Set a UPI autopay for the full bill so you never miss a due date.
- Track spends in real time (CapSTEP does this) — cards make money invisible.
- Cancel cards you don't use, but keep your oldest active — credit-age matters.
Rolling over ₹1,00,000 at min-due for 2 years costs ~₹58,000 in interest. That's a return-killer no SIP can outrun.