New Delhi, April 18 -- Credit cards offer a convenient way to manage cash flow by offering a grace duration called a "float" or credit period. This period can be effectively interest-free, but only if you repay the entire outstanding amount by the due date. When used correctly, it helps you defer payments and manage expenses without immediate cash outflow.

However, this benefit may be misunderstood. If an user pays only the minimum amount due, assuming they are avoiding charges, that's often not true. In reality, failing to pay the full bill can trigger certain consequences, such as high interest on the remaining balance, according to a report by Axis Bank.

Users must understand that their outstanding balance is not just the total sum o...