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All you need to know on how often you should use your credit card

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Credit cards are an integral part of our lives these days. No matter whether we have sufficient cash in our pockets or not, we tend to make purchases with credit cards. This surely reduces the pain of carrying hard cash each time you opt for purchase and also spares you from counting on the balance amounts. The other benefit is that the payment, for the time being, becomes virtual for you which can be paid for in some later date. But, while using the credit cards for your benefit and ease, you should also know how to use credit card. The frequency of using a credit card is critical as with an overuse, you can incur a lot of debt which might be a problem for you to pay off. 


On the contrary, if you do not use a credit card at all, your card will become inactive depriving you of the opportunity to use it in the future as well. Hence, there must a balance between the intended use and the actual use of a credit card. Let us have a look into the aspects that can decide a healthy practice of using credit cards.

Keep a check on your credit utilization ratio

Credit utilization ratio refers to the ratio between available credit and the balance amount. Suppose you have taken a loan of INR 300 out of your available credit limit of INR 1000. In this case, your credit ratio becomes 30% which is designated as the risk-free and healthy ratio. Even if you are capable of paying off more than this; it is recommended that you should not take more credit to avoid unnecessary debt burdens. Once you know that you can pay and if you utilize the full limit for your purchases, you will also end up losing your control over your expenditure behavior. Hence, make sure that you handle your credit card responsibly and do not accrue heaps of debt.

Try to pay off in full

There remains a misconception in the market that a user should leave a certain amount of credit unpaid every month, but in reality, the partial payments attract more interest rate on the accumulated debt. Hence, make sure that you are paying the liabilities on time and every month the entire amount of your bill is getting paid off. If you do not pay off the entire sum, it will get added to the volume of future purchases as well making the total sum of debt unbearable for you at the end of the year. Stay away from partial payments and ensure paying less interest.

Your credit card must be active

Responsible use never means no use at all. Generally, if you do not use your credit card for one complete year, the issuer tends to close the card, and your credit card turns inactive. Hence, make sure that you are using your credit card at least once or twice a month to make the necessary purchases so that it never turns into an inactive one. Once you receive the bill and pay the same, your credit account gets marked with a “Paid” sign which acts in favor of you making your balance 0%. But, if you do not use your credit card for long, your account will show “no activity” which could be alarming.

The appropriate frequency of using credit cards

There is no such rule to the frequency of using a credit card. However, the same depends on the purchasing behavior of an individual and the ability to pay the volumes of debt in time. It is suggested that every credit card that you have should be used at least once a month to keep it active but if you have too many cards, to keep all of them active, do not start purchasing randomly. Never let your debts get you into trouble and make sure that you use the credit cards for your benefit.

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