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Discover the top 5 myths about credit cards in India and learn the truth to manage your finances smarter and safer.
Introduction
👉 “If you are new to credit cards, first read our detailed guide on What is a Credit Card and How Does it Work in India?”
In this article, we’ll break down the Top 5 Myths About Credit Cards in India, explain the truth behind them, and help you make informed financial decisions.
Myth 1: Credit Cards Always Lead to Debt
Many people believe that simply owning a credit card means you will fall into debt.
Reality:
- Debt occurs only when you spend beyond your means or fail to pay your bill on time.
- If you pay your full balance before the due date, you won’t be charged any interest.
- In fact, credit cards can help you build a good credit score if used responsibly.
👉 Tip: Always spend within your monthly budget and treat your card like cash.
Myth 2: Having Multiple Credit Cards Is Bad for Your Financial Health
It’s often said that more than one credit card can harm your finances.
Reality:
- Having multiple cards can actually be beneficial.
- You can enjoy different rewards like cashback, travel points, and shopping discounts.
- It also increases your overall credit limit, which reduces your credit utilization ratio and improves your credit score.
👉 Tip: Only keep as many cards as you can manage responsibly.
Myth 3: Credit Cards Have Hidden Charges Everywhere
Many people fear that credit cards are full of hidden fees.
Reality:
- Most charges like annual fees, late payment fees, cash withdrawal charges, and GST are clearly mentioned in the terms and conditions.
- Many cards even offer lifetime free memberships with zero annual fees.
- By reading the fine print carefully, you can avoid unnecessary costs.
👉 Tip: Use credit cards wisely, avoid cash withdrawals, and pay on time to eliminate extra charges.
Myth 4: Using a Credit Card Hurts Your Credit Score
Some people believe that simply swiping your card lowers your credit rating.
Reality:
- Using your card regularly and repaying on time actually improves your credit score.
- Credit bureaus track your repayment history, and responsible credit card usage shows lenders that you’re financially disciplined.
👉 Tip: Keep your credit utilization below 30% of your total limit for a healthy score.
Myth 5: Credit Cards Are Only for the Rich
A common misconception is that credit cards are only meant for wealthy people.
Reality:
- Today, credit cards are available for students, salaried individuals, small business owners, and even homemakers (against fixed deposits).
- Banks offer a wide variety of cards suited to different income levels and needs.
- Some cards even come with zero joining fees and basic reward structures, making them accessible to everyone.
👉 Tip: Choose a card that matches your lifestyle, not your income bracket.
Key Takeaways
- Credit cards are safe and beneficial if used wisely.
- Myths often arise from misuse or lack of knowledge.
- By understanding the truth, you can make credit cards work for you instead of against you.
Recommended Next Reads 📖
If you found this article useful, don’t miss the next ones in our Credit Card Series:
- 👉 Beginner’s Guide: How to Apply for a Credit Card Online – Learn step-by-step how to apply and get approval fast.
- 👉 Top 5 Mistakes to Avoid When Using Credit Cards – Discover common errors that can cost you money and how to avoid them.
Best Beginner-Friendly Credit Cards in India 2025
1. HDFC Bank Credit Card
2. Flipkart Axis Bank Credit Card –
3. Swiggy HDFC Bank Credit Card
4. SBI Cashback Credit Card
5. HSBC Live Plus Credit Card
👉 “Still confused whether a credit card is right for you? Don’t miss our article on Credit Card vs Debit Card – Which is Better for You? where we break down the pros and cons in detail.”
Frequently Asked Questions (FAQs)
1: Is the HDFC Bank Credit Card good for beginners?
Yes. HDFC Bank offers several beginner-friendly cards like HDFC MoneyBack+ Credit Card, which comes with a low annual fee, easy approval, and benefits like reward points on online spends and fuel surcharge waiver.
2. What are the main benefits of the Flipkart Axis Bank Credit Card?
The Flipkart Axis Bank Credit Card offers 5% cashback on Flipkart and Myntra, 4% on preferred merchants like Swiggy, Uber, and PVR, plus 1.5% unlimited cashback on all other spends. It’s best for frequent online shoppers.
3. Who should get the Swiggy HDFC Bank Credit Card?
This card is ideal for people who frequently order food, shop online, and use Swiggy services. It offers 10% cashback on Swiggy, Instamart, and Dineout spends, along with rewards on other lifestyle categories.
4. What makes the SBI Cashback Credit Card unique?
The SBI Cashback Credit Card offers 5% cashback on all online spends without merchant restrictions, making it one of the best universal cashback cards in India. It’s perfect for users who want simple, flat rewards.
5. What are the benefits of the HSBC Live+ Credit Card?
The HSBC Live+ Credit Card provides introductory cashback offers, dining discounts, and fuel surcharge waivers. It is suitable for users who want lifestyle benefits and global usage without high annual fees.
Conclusion
Credit cards are not dangerous or complicated—they are simply tools. Like any financial product, they require discipline and awareness. By debunking these myths, you can confidently use credit cards to enjoy rewards, build a strong credit profile, and simplify your financial life.
👉 If you are serious about starting your credit journey, we recommend reading these guides before applying:
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