How to use your first credit card without falling into debt

A credit card is a tool, not extra income. Used right, it builds your credit score and pays you cashback on money you were going to spend anyway. Used carelessly, a ₹50,000 bill can turn into years of interest at 40% a year.

Start with three rules. First, swipe only for things already in your monthly budget — groceries, fuel, phone bills. Second, always pay the full amount due, never the "minimum due"; the minimum keeps the bank happy and the interest running. Third, set a personal limit below the bank's limit. If your card limit is ₹1,00,000 but you never spend more than ₹30,000 a month, ask the bank to cap it.

Turn on autopay for the full statement balance from your savings account, and set the autopay date a few days before the due date. Check your statement once a month — it takes two minutes and catches wrong charges early. Do this, and the card works for you.