6 Credit Card Mistakes To Avoid During Lockdown


COVID-19 has undoubtedly caused a lot of issues in the whole world where it has affected not only health and education but also money resources and businesses. This pandemic has left everyone by storm. The scarcity of many resources, including the financial crisis, has made things more difficult for everyone. The lockdown period has indeed ceased many fund resources, which has a significant effect on people from every stream of income extraction. 

Where businesses are not running or slowed down and at workplaces employees whose salaries have been halved or haven’t yet received their wages. Depicting a limitation in the resources. Now, it is undoubtedly our responsibility to use those resources wisely. Credit Cards are one of those precious resources which are to be used wisely. And it is discovered that credit cards can be made very easily. The points mentioned below will be answering most of your queries.

Unneeded Purchases From Credit Cards

We tend to spend money on items that hold not much importance in our lives or just for fun’s sake and buy products, which can eventually lead us to run out of money and resources. We must remember that expenditure on luxury items or unnecessary products must be avoided.

Credit Cards should preferably be used for necessary medications, financial crises, or emergencies. The immediate need for money and lack of resources might lead to many other issues too.

Delay In The Payment Of Credit Card Dues

Sometimes we forget to pay our bills. We must keep in mind the consequences it may lead to. Paying credit card dues on time is a must. A person not paying credit card dues has to pay late fees and deal with expanded interest. It is more like a loan which must be avoided. To avoid such issues, we must plan accordingly. This lets us prevent situations of crisis. 

A mortgage is always a load to a person who must be removed as soon as possible else it might lead to many other issues too. Writing down your expenses will let you remember all the money spent through credit as well as save you from interest issues.

Cash Withdrawal From Credit Cards

Spending money lavishly through credit cards can lead to a lot of trouble. Withdrawing cash from credit cards must be avoided as it may have hidden charges, which can eventually lead to an increased percentage of repayments. An increase in the rate of repayments can bring a person in a lot of trouble during the lockdown.

Maxing Out On Credit Card

Too much online shopping must be avoided. Only necessary shopping must be done as the majority usage of available credit is a bad idea. Your credit score lowers if your utilization rate is very high. The utilization rate of your credit card plays a significant role. 

Lesser the utilization rate, the better it will be. Your credit amount gets recorded in your utilization rate. Thrift spending during the lockdown period is the most dangerous thing to do as your mental peace will be at stake if your utilization rate crosses its limit.

Too Often Applying For New Credit Cards

It is important to manage resources properly. A wrong step might lead to many issues. Another avoidable aspect is not to apply for new credit cards too often. The further inquiry arises on your credit report whenever you apply for credit. 

You can appear as a risk to the lenders with more queries in a short while. Avoid using the loan more than once in six months. It not only affects your image in front of the lenders, but also your credits can be ceased. 

Closing Your Credit Card

If you close a credit card, then less credit will be accessible to you. Your credit utilization ratio will be raised due to a decrease in credit availability.You will be at risk if you fail to pay off your credit fully in a month. 

Sometimes we fall short of money, and this is much prevalent during the lockdown as we don’t know what the next day might bring. So, avoid closing your credit card only if it is necessary.


Avoidable Credit Card issues mentioned above, if followed with diligence, can save us from a lot of undesirable consequences. We are much aware that it is a complicated situation for the whole country where the stability of mind or mental peace holds a lot of significance. 

Money and its resources, if handled with proper care and intelligence, might lead to a successful journey throughout this challenging period, saving us from many upcoming challenges.