Credit cards 101: The do’s and don’ts

Post date

Mar 22, 2025

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.