New Delhi, May 11 -- A line of short-term borrowing, credit cards are flexible borrowing instruments that come with the highest interest rates among most personal finance tools. The major benefit when using a credit card is that it helps build your credit score. Further, when it comes to utility, a credit card simplifies payments, assists with tracking expenses, and has benefits on offer from the lenders that could be highly valuable.

As part of the use of your credit card is the income tax requirement for statement of financial transaction (SFT), under Section 285BA of the Income Tax Act, that helps the tax department track transactions and curb evasion.

However, sharing your credit card with friends and family could lead to attention ...