The Indian credit card market is expected to grow at a CAGR of 25% between 2020 and 2025 as per a report by Research and Markets.

The primary contributing factors here is a growing competition, which is fuelled by several players even from the non-financial sector. This has led to credit card providers offering benefits that are only available in India.

For the growing customers, it is essential for them to know about the credit card rules and guidelines in using such a product.

The most important rules that beginners should know about before applying for a credit card are –

• Understand how the line of credit works and how it be used for your expenses up to the credit limit of each billing cycle.
• Apply for a credit card only if your finances can support it. If our income is not sufficient to pay your monthly credit bills on time, you will be liable for payment of high interests. Alongside, your CIBIL score will also decrease.
• Opt for a credit card only if you can pay the total amount due for each billing period. If you pay the minimum amount due on your credit card bill, you will start to accumulate debt, which will further have a negative impact on your CIBIL score.
• Choose your credit card wisely according to your lifestyle.
• Redeem the reward points for discounts, cash, gift cards, mobile recharge, etc. Opt for credit cards such as the Bajaj Finserv RBL Bank SuperCard, which offers 20,000 reward points as a welcome bonus.
• Another important rule for new credit owners is to ATM cash withdrawals as most card issuers charge a particular penalty charge for such actions.

Lastly, before applying, learn about the eligibility criteria of the credit card that you desire to ensure application approval.