Aishwariya Dhal 
Several studies have shown that consumers tend to make more purchases when paying with credit cards than when paying with cash. As the shopping season approaches, you’ll be tempted to get the most out of your credit card, tempted by all sorts of perks. and discounts.
However, excessive use of credit cards can negatively affect your credit score and lower your CIBIL score. A CIBIL score is a three-digit number that determines creditworthiness and is used as a resource by other lenders. Evaluate whether they should lend you a loan. In fact, the CIBIL score plays a key role in enabling you to take advantage of favorable interest rates on credit products.
Overusing your credit card can lead to unnecessary purchases and recurring monthly debt.
What are credit limits and overdraft limits?
A credit limit is the maximum amount that can be used on a credit card at one time. time. Credit card limits are set so that you can pay back the money you borrow within a certain period of time without falling into a debt trap. credit Limits are determined by several factors such as income, credit profile and credit score. Credit card limits are usually set by the issuer at the time the card is issued, but limits can be changed periodically It depends on the cardholder’s repayment history, creditworthiness, income, etc.
Overcredit is when you use your credit card for more than your credit card limit. Credit Overrun is a feature allowed for all credit card users. You can choose to cancel transactions that exceed your credit limit or continue transactions that exceed your limit.
How Credit Cards Affect Your Credit Score
Credit card repayment history:
The biggest factor affecting credit cards is the repayment history of the card. According to Bank Bazaar. This accounts for almost 35% of your credit score. to do so Always maintain good credit and make sure you pay your loan. Card payment on time. If you do not pay your credit card bill by the due date, Pay higher interest and additional late fees.
Credit Limit Exceeded:
Usually very high load, for example, 70/80% or more of the total limit can be negative Impact on credit score. Very high occupancy rates can lead to missed payments, so lenders are always watching carefully. Timely repayment of fees is critical to maintaining and improving creditworthiness. Even EMI’s failures are reflected in credit reports, Credit influences the score.
