Credit cards 101: The do’s and don’ts
Credit cards are powerful financial tools—but only if used wisely. They offer rewards, convenience, and flexibility, but mismanagement can lead to high-interest debt. Understanding how to use them responsibly ensures your financial security.
✅ Step 1: Choose the right credit card
Not all credit cards are the same. Pick one based on your spending habits and financial needs:
✅ Understand your maximum credit eligibility (speak to your banker).
✅ Travel rewards: Get travel insurance, lounge access, and other perks..
📌 Example: If you travel frequently, a Gold Credit card can help you earn benefits and offers.
💡 Pro Tip: Compare MCB’s range of credit cards to find one that matches your lifestyle.
🏦 Step 2: Always pay your balance in full
Avoid debt by paying off your statement balance each month.
✅ You have up to 30 days to repay your credit card balance in full without being charged any interest.
✅ Alternatively, you can choose to automatically repay 5%, 10%, 25%, or 50% of your balance each month, depending on your financial situation, when applying for your card.
💡 Set up automatic payments through MCB Online Banking to ensure you never miss a due date.
💰 Step 3: Monitor your credit utilisation
Your credit utilisation (the amount of credit you use vs. your limit) impacts your credit score.
✔ Keep utilisation below 30% to maintain a healthy score.
✔ Example: If you have a Rs. 100,000 limit, avoid carrying a balance higher than Rs. 30,000.
💡 Use the MCB Juice App to track your credit card usage.
📈 Step 4: Take advantage of rewards
Credit cards can help you save if used strategically:
✔ Get travel perks like free lounge access and flight discounts.
✔ Redeem points for shopping vouchers.
💡 MCB Reward Points let you turn everyday purchases into valuable benefits.
📑 Step 5: Avoid unnecessary fees
Credit card fees can eat into your budget if not managed properly.
✅ Avoid cash advances—they have high interest rates.
✅ Set reminders for payment due dates to avoid late fees.
✅ Be mindful of foreign transaction fees when traveling.
📌 Takeaways: Use credit cards to your advantage
✔ Choose the right MCB credit card for your spending habits.
✔ Always pay your balance in full to avoid interest.
✔ Keep your credit utilizsation low to maintain a good credit score.
✔ Take advantage of cashback and rewards for extra savings.
✔ Avoid unnecessary fees to maximise benefits.
✔ You can pay with your credit card rather than getting hire purchase services.
Looking for a credit card with great perks? Check out MCB’s credit card options and find the perfect fit for your lifestyle. Apply now.
