When needed, people withdraw money from their bank account with the help of a debit card. For this, it is necessary to have money in your bank account, but it is not so in a credit card. The bank issues credit cards to its customers by setting a limit. Through this card, apart from online and offline shopping and many other methods, you can also withdraw money from ATMs. Every month the credit card bill comes and you have to pay it. But amidst all this, if you exhaust the entire limit of your credit card, then you should avoid doing so because it also has some disadvantages. So let's know about this. You can know about this in the next slides...
Understand it like this, if your bank has given a limit of Rs 60 thousand on your credit card and you spend it completely. So in such a situation, your limit can be zero or even minus. It also has many disadvantages.
Is considered very expensive
People who spend the entire limit of their credit card are considered very spendthrift in the eyes of the bank. At the same time, a zero limit shows that the cardholder is facing some financial problems.
Credit score
At the same time, when your credit card limit becomes zero and after that, when you gradually pay the bill, the bank can reduce your limit. There can also be a ban on increasing the limit.
Apart from this, if for some reason you do not pay the bill, it hurts your CIBIL score. At the same time, there can be a problem in making a credit card from another bank with the help of one card, because for this it is necessary to have a 30 percent limit on the existing card.
(PC: IStock)
