The most common mistake people make is treating credit cards as “extra income.” In reality, they are simply a short-term borrowing facility. Spending more than you can repay on time leads to high-interest charges—often as high as 30–40% annually. This can wipe out your savings and cause unnecessary stress.

On the positive side, credit cards offer numerous benefits. From cashback and travel points to discounts on shopping, they can save you thousands every year. For high-income earners, especially those making ₹1 lakh or more per month, strategic use of multiple cards can maximize benefits. For example, one card may give higher rewards on travel, while another offers cashback on groceries and fuel.

The golden rules of smart credit card usage are simple:

1. Always pay your full balance on time—never just the minimum due.

2. Don’t use more than 30–40% of your card limit; this keeps your credit score healthy.

3. Choose cards that match your lifestyle—don’t chase rewards that don’t add real value.

At Chemistry of Wealth, we help individuals understand how to leverage credit cards for financial gain without falling into the debt trap. Remember, the card itself isn’t dangerous—how you use it makes all the difference.