7 Credit Card Habits: Save ₹42,000 a Year?

Credit cards give you rewards and cashback, but bad habits silently drain your money. These 7 simple rules help you avoid debt traps, cut fees, and actually profit from your card.

Here's what happened: Credit card outstanding debt in India crossed ₹2.7 lakh crore in 2024, with millions of users paying 36–42% annual interest on unpaid balances.. RBI data shows reward redemption rates are low — a significant share of points earned by Indian cardholders expire unused each year.. Rising card issuance (over 10 crore active cards) has brought more perks but also more fee structures, hidden charges, and spending traps for new users..

What you should do: Set up auto-pay for the FULL outstanding balance — not minimum due — so you never pay interest on carried-over debt.. Check your reward points expiry date on your bank's app this week and redeem anything expiring within 6 months.. Call your bank before your card's annual renewal date and ask them to waive the fee citing your spend history — most banks comply if you've hit their threshold..

If you have 2+ credit cards, pay off the one with the highest utilisation ratio first — not the highest interest rate — to protect your CIBIL score fastest.